Emerson Electric (EMR) Dips More Than Broader Markets: What You Should Know

Emerson Electric (EMR) closed at $82.17 in the latest trading session, marking a -1.52% move from the prior day. This move lagged the S&P 500's daily loss of 1.45%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 3.06%.

Coming into today, shares of the maker of process controls systems, valves and analytical instruments had lost 2.01% in the past month. In that same time, the Industrial Products sector lost 0.15%, while the S&P 500 lost 3.83%.

Wall Street will be looking for positivity from Emerson Electric as it approaches its next earnings report date. The company is expected to report EPS of $0.97, down 24.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.65 billion, down 23.79% from the year-ago period.

EMR's full-year Zacks Consensus Estimates are calling for earnings of $4.07 per share and revenue of $14.97 billion. These results would represent year-over-year changes of -22.48% and -23.71%, respectively.

Any recent changes to analyst estimates for Emerson Electric should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.62% lower. Emerson Electric is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 20.49 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 20.49.

Investors should also note that EMR has a PEG ratio of 2.41 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 Manufacturing - Electronics was holding an average PEG ratio of 2.25 at yesterday's closing price.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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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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