Emerson Electric (EMR) closed the most recent trading day at $100.12, moving +1.18% from the previous trading session. This change outpaced the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 1.14%.
Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had gained 3.35% over the past month. This has outpaced the Industrial Products sector's loss of 2.27% and the S&P 500's loss of 0.73% in that time.
Emerson Electric will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.29, down 15.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.2 billion, down 21.65% from the prior-year quarter.
EMR's full-year Zacks Consensus Estimates are calling for earnings of $4.41 per share and revenue of $15.27 billion. These results would represent year-over-year changes of -16% and -22.18%, respectively.
It is also important to note the recent changes to analyst estimates for Emerson Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 22.42 right now. This represents a premium compared to its industry's average Forward P/E of 21.28.
Also, we should mention that EMR has a PEG ratio of 2.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EMR's industry had an average PEG ratio of 2.12 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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