In the latest market close, Emerson Electric (EMR) reached $111.54, with a +1.4% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 0.87%.

Shares of the maker of process controls systems, valves and analytical instruments have depreciated by 3.53% over the course of the past month, outperforming the Industrial Products sector's loss of 5.5% and the S&P 500's loss of 5.28%.

Market participants will be closely following the financial results of Emerson Electric in its upcoming release. The company is expected to report EPS of $1.41, up 3.68% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.38 billion, indicating a 0.09% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.97 per share and revenue of $17.87 billion, which would represent changes of +8.74% and +2.14%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Emerson Electric. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Emerson Electric currently has a Zacks Rank of #2 (Buy).

With respect to valuation, Emerson Electric is currently being traded at a Forward P/E ratio of 18.42. This represents a discount compared to its industry's average Forward P/E of 19.46.

It's also important to note that EMR currently trades at a PEG ratio of 2.15. 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 1.74 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 27, placing it within the top 11% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Emerson Electric Co. (EMR) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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