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In the latest market close, Emerson Electric (EMR) reached $122.18, with a -1.41% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.16%.
Shares of the maker of process controls systems, valves and analytical instruments have depreciated by 7.74% over the course of the past month, outperforming the Industrial Products sector's loss of 9.8% and lagging the S&P 500's loss of 2.36%.
Market participants will be closely following the financial results of Emerson Electric in its upcoming release. The company's upcoming EPS is projected at $1.28, signifying a 4.92% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.23 billion, up 2.81% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.94 per share and a revenue of $18.17 billion, demonstrating changes of +8.2% and +3.86%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Emerson Electric. Recent revisions tend to reflect the latest near-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 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 0.06% increase. At present, Emerson Electric boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 20.88 right now. This signifies a discount in comparison to the average Forward P/E of 21.64 for its industry.
Investors should also note that EMR has a PEG ratio of 2.08 right now. 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 average PEG ratio for the Manufacturing - Electronics industry stood at 1.79 at the close of the market yesterday.