Emerson Electric (EMR) Stock Moves -1.24%: What You Should Know

Zacks
28 Jan

The most recent trading session ended with Emerson Electric (EMR) standing at $128.98, reflecting a -1.24% shift from the previouse trading day's closing. This move was narrower than the S&P 500's daily loss of 1.46%. Meanwhile, the Dow experienced a rise of 0.65%, and the technology-dominated Nasdaq saw a decrease of 3.07%.

Shares of the maker of process controls systems, valves and analytical instruments have appreciated by 3.89% over the course of the past month, underperforming the Industrial Products sector's gain of 5.12% and outperforming the S&P 500's gain of 1.08%.

Market participants will be closely following the financial results of Emerson Electric in its upcoming release. The company plans to announce its earnings on February 5, 2025. The company's earnings per share (EPS) are projected to be $1.28, reflecting a 4.92% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.21 billion, up 2.34% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.91 per share and a revenue of $18.06 billion, representing changes of +7.65% and +3.23%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Emerson Electric. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.42% downward. As of now, Emerson Electric holds a Zacks Rank of #3 (Hold).

In terms of valuation, Emerson Electric is currently trading at a Forward P/E ratio of 22.09. For comparison, its industry has an average Forward P/E of 22.63, which means Emerson Electric is trading at a discount to the group.

It's also important to note that EMR currently trades at a PEG ratio of 2.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 141, placing it within the bottom 44% of over 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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