Emerson Electric (EMR) Beats Stock Market Upswing: What Investors Need to Know

Zacks
24 Jan

Emerson Electric (EMR) closed the most recent trading day at $131.17, moving +0.95% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.53%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 0.22%.

Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had gained 2.94% over the past month. This has lagged the Industrial Products sector's gain of 5.12% and outpaced the S&P 500's gain of 2.69% in that time.

Investors will be eagerly watching for the performance of Emerson Electric in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 5, 2025. The company is predicted to post an EPS of $1.28, indicating a 4.92% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.21 billion, up 2.34% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.91 per share and a revenue of $18.06 billion, signifying shifts of +7.65% and +3.23%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.42% lower. At present, Emerson Electric boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Emerson Electric is currently trading at a Forward P/E ratio of 21.98. This valuation marks a discount compared to its industry's average Forward P/E of 22.96.

It is also worth noting that EMR currently has a PEG ratio of 2.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Manufacturing - Electronics industry stood at 1.93 at the close of the market yesterday.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 142, placing it within the bottom 44% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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