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Emerson Electric (EMR) Stock Sinks As Market Gains: What You Should Know

Emerson Electric (EMR) closed at $85.59 in the latest trading session, marking a -0.01% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 4.87%.

Coming into today, shares of the maker of process controls systems, valves and analytical instruments had gained 3.27% in the past month. In that same time, the Industrial Products sector gained 0.41%, while the S&P 500 gained 3.31%.

Emerson Electric will be looking to display strength as it nears its next earnings release, which is expected to be May 3, 2023. In that report, analysts expect Emerson Electric to post earnings of $0.97 per share. This would mark a year-over-year decline of 24.81%. Meanwhile, our latest consensus estimate is calling for revenue of $3.65 billion, down 23.73% from the prior-year quarter.

EMR's full-year Zacks Consensus Estimates are calling for earnings of $4.07 per share and revenue of $14.98 billion. These results would represent year-over-year changes of -22.48% and -23.7%, respectively.

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Investors might also notice recent changes to analyst estimates for Emerson Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.03% lower within the past month. Emerson Electric is currently a Zacks Rank #3 (Hold).

In terms of valuation, Emerson Electric is currently trading at a Forward P/E ratio of 21.03. For comparison, its industry has an average Forward P/E of 20.8, which means Emerson Electric is trading at a premium to the group.

It is also worth noting that EMR currently has a PEG ratio of 2.47. 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. The Manufacturing - Electronics was holding an average PEG ratio of 2.04 at yesterday's closing price.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 38, putting it in the top 16% 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.

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

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