Yahoo Finance Emerson Electric (EMR) Outpaces Stock Market Gains: What You Should Know
Emerson Electric (EMR) closed at $90.62 in the latest trading session, marking a +1.73% move from the prior day. This move outpaced the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 6.59%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had lost 6.49% in the past month. In that same time, the Industrial Products sector gained 4.05%, while the S&P 500 gained 4.58%.
Emerson Electric will be looking to display strength as it nears its next earnings release, which is expected to be February 8, 2023. In that report, analysts expect Emerson Electric to post earnings of $0.88 per share. This would mark a year-over-year decline of 16.19%. Meanwhile, our latest consensus estimate is calling for revenue of $3.47 billion, down 22.49% from the prior-year quarter.
EMR's full-year Zacks Consensus Estimates are calling for earnings of $4.08 per share and revenue of $14.89 billion. These results would represent year-over-year changes of -22.29% and -24.14%, respectively.
Investors might also notice recent changes to analyst estimates for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Emerson Electric is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Emerson Electric is currently trading at a Forward P/E ratio of 21.83. This represents a premium compared to its industry's average Forward P/E of 20.28.
We can also see that EMR currently has a PEG ratio of 2.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Electronics industry currently had an average PEG ratio of 1.94 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow EMR in the coming trading sessions, be sure to utilize Zacks.com.
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Emerson Electric Co. (EMR) : Free Stock Analysis Report
