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In the latest market close, Emerson Electric (EMR) reached $108.13, with a -0.12% movement compared to the previous day. This change lagged the S&P 500’s daily loss of 0.03%. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq increased by 0.56%.
The maker of process controls systems, valves and analytical instruments’s shares have seen a decrease of 0.59% over the last month, surpassing the Industrial Products sector’s loss of 2.91% and falling behind the S&P 500’s gain of 1.39%.
The investment community will be paying close attention to the earnings performance of Emerson Electric in its upcoming release. The company is slated to reveal its earnings on November 5, 2024. In that report, analysts expect Emerson Electric to post earnings of $1.47 per share. This would mark year-over-year growth of 13.95%. In the meantime, our current consensus estimate forecasts the revenue to be $4.58 billion, indicating a 11.88% growth compared to the corresponding quarter of the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Emerson Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.87% lower. Emerson Electric is currently a Zacks Rank #3 (Hold).
Digging into valuation, Emerson Electric currently has a Forward P/E ratio of 18.25. This valuation marks a discount compared to its industry’s average Forward P/E of 22.29.
Meanwhile, EMR’s PEG ratio is currently 1.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The average PEG ratio for the Manufacturing – Electronics industry stood at 2.01 at the close of the market yesterday.
The Manufacturing – Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning it in the bottom 33% of all 250+ industries.