Why Emerson Electric (EMR) Dipped More Than Broader Market Today

Emerson Electric (EMR) closed at $131.64 in the latest trading session, marking a -1.83% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.16%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 1.81%. The maker of process controls systems, valves and analytical instruments's stock has climbed by 5.79% in the past month, exceeding the Industrial Products sector's gain of 3.36% and the S&P 500's gain of 1.03%.Investors will be eagerly watching for the performance of Emerson Electric in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.41, indicating a 2.17% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.34 billion, indicating a 4.05% growth compared to the corresponding quarter of the prior year. For the full year, the Zacks Consensus Estimates are projecting earnings of $6.46 per share and revenue of $18.87 billion, which would represent changes of +7.67% and +4.76%, respectively, from the prior year. Investors should also take note of any recent adjustments to analyst estimates for Emerson Electric. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.43% higher. Emerson Electric presently features a Zacks Rank of #3 (Hold). With respect to valuation, Emerson Electric is currently being traded at a Forward P/E ratio of 20.75. Its industry sports an average Forward P/E of 25.37, so one might conclude that Emerson Electric is trading at a discount comparatively. It's also important to note that EMR currently trades at a PEG ratio of 2.18. 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 2.03 based on yesterday's closing prices. The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Emerson Electric Co. (EMR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks