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In the latest market close, Emerson Electric (EMR) reached $120.30, with a -0.31% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had lost 8.08% in the past month. In that same time, the Industrial Products sector lost 8.6%, while the S&P 500 lost 2.7%.
Investors will be eagerly watching for the performance of Emerson Electric in its upcoming earnings disclosure. In that report, analysts expect Emerson Electric to post earnings of $1.28 per share. This would mark year-over-year growth of 4.92%. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $5.94 per share and a revenue of $18.17 billion, signifying shifts of +8.2% and +3.86%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. Emerson Electric is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 20.27 right now. This denotes a discount relative to the industry's average Forward P/E of 21.17.
Also, we should mention that EMR has a PEG ratio of 2.02. 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 1.84.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 37, this industry ranks in the top 15% of all industries, numbering over 250.