Emerson Electric (EMR) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest trading session, Emerson Electric (EMR) closed at $106.41, marking a -0.04% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.91%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 1.51%.

Coming into today, shares of the maker of process controls systems, valves and analytical instruments had lost 6.24% in the past month. In that same time, the Industrial Products sector lost 5.19%, while the S&P 500 lost 4.2%.

The investment community will be paying close attention to the earnings performance of Emerson Electric in its upcoming release. The company is slated to reveal its earnings on May 8, 2024. On that day, Emerson Electric is projected to report earnings of $1.26 per share, which would represent year-over-year growth of 15.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.29 billion, up 14.2% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.40 per share and a revenue of $17.55 billion, signifying shifts of +21.62% and +15.73%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Emerson Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 0.05% higher. At present, Emerson Electric boasts a Zacks Rank of #2 (Buy).

From a valuation perspective, Emerson Electric is currently exchanging hands at a Forward P/E ratio of 19.71. This signifies a discount in comparison to the average Forward P/E of 22.43 for its industry.

It's also important to note that EMR currently trades at a PEG ratio of 1.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Electronics industry currently had an average PEG ratio of 1.9 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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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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