Emerson, AspenTech to Deliver Digital Technology Solutions

Emerson Electric CompanyEMR recently collaborated with Aspen Technology, Inc. AZPN to deliver asset optimization software solutions along with global automation technologies and operational consulting services. The collaboration will enable customers to optimize production as well as drive operational excellence.

The latest partnership is likely to leverage AspenTech's broad suite of asset optimization software and Emerson's capabilities in automation engineering services & software, large-scale project execution and consulting services as well.

Currently, AspenTech's asset optimization software supports Emerson's Project Certainty and Operational Certainty initiatives by creating value across all asset lifecycle phases in capital intensive as well as complex projects. Together, these capabilities will come up as solutions in conventional as well as cloud-based architectures.

Initially, the partnership will focus on three major areas like engineering software, manufacturing and supply chain software and asset performance management software. Also, it will offer optimization strategies that are based on real-time data and advanced analytics, facilitating business improvements in production, and in areas like reliability, safety as well as energy management.

Our Take

At present, Emerson's growth momentum is being driven by favorable trends in energy-related, hybrid and general industrial markets as well as strong demand in the HVAC and refrigeration markets. Moreover, the company is well positioned to benefit from global infrastructure growth as its core businesses hold dominant positions in markets tied to energy efficiency and infrastructure spending. Going forward, it believes telecommunications infrastructure demand will continue to be one of the strongest growth drivers.

In the past three months, this Zacks Rank #2 (Buy) company has returned 15.8% outperforming the industry 's gain of 4.6%.

The company is very enthusiastic about the prospects of its Commercial & Residential Solutions segment as it is witnessing improving trends in the United States, Europe and Asian construction markets. For instance, during the first quarter, the company's Automation Solutions platform reported an impressive 30.8% year-over-year growth. For fiscal 2018, the company believes this segment's underlying sales to grow by 4-6%, on the back of a favorable outlook for global demand within its served markets. This apart, Emerson has a solid history of clinching lucrative contracts in the energy infrastructure field, which will prove to be conducive to its top-line performance.

Other Stocks to Consider

Some other top-ranked stocks from the same space include Applied Industrial Technologies, Inc. AIT and CIRCOR International, Inc. CIR . While Applied Industrial Technologies sports a Zacks Rank #1 (Strong Buy), CIRCOR International carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Applied Industrial Technologies has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 11%.

CIRCOR International has surpassed estimates twice in the preceding four quarters, with an average positive earnings surprise of 0.2%.

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Aspen Technology, Inc. (AZPN): Free Stock Analysis Report

Emerson Electric Company (EMR): Free Stock Analysis Report

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CIRCOR International, Inc. (CIR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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