Emerson Electric (EMR) Ascends But Remains Behind Market: Some Facts to Note

The most recent trading session ended with Emerson Electric EMR standing at $109.89, reflecting a +0.26% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.02%. On the other hand, the Dow registered a gain of 0.4%, and the technology-centric Nasdaq increased by 2.03%.

Shares of the maker of process controls systems, valves and analytical instruments have depreciated by 3.37% over the course of the past month, underperforming the Industrial Products sector's loss of 3.17% and the S&P 500's loss of 3.15%.

The investment community will be closely monitoring the performance of Emerson Electric in its forthcoming earnings report. The company is scheduled to release its earnings on May 8, 2024. The company is expected to report EPS of $1.26, up 15.6% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.29 billion, up 14.2% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.40 per share and a revenue of $17.55 billion, demonstrating changes of +21.62% and +15.73%, respectively, from the preceding year.

Investors might also notice recent changes to 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 company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% upward. Right now, Emerson Electric possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 20.29 right now. This denotes a discount relative to the industry's average Forward P/E of 20.83.

It is also worth noting that EMR currently has a PEG ratio of 1.9. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 40% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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