Emerson Electric (EMR) closed the most recent trading day at $137.91, moving -2.58% from the previous trading session. This move lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had gained 1.79% lagged the Industrial Products sector's gain of 4.88% and the S&P 500's gain of 2.14%.
The upcoming earnings release of Emerson Electric will be of great interest to investors. The company is forecasted to report an EPS of $1.68, showcasing a 10.53% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.8 billion, indicating a 5.48% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.49 per share and a revenue of $18.81 billion, representing changes of +8.17% and +4.41%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Emerson Electric. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. Right now, Emerson Electric possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Emerson Electric is presently trading at a Forward P/E ratio of 21.8. This valuation marks a discount compared to its industry average Forward P/E of 22.99.
Also, we should mention that EMR has a PEG ratio of 2.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.73.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 34% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Emerson Electric Co. (EMR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).