Here's Why Emerson Electric (EMR) Fell More Than Broader Market

In the latest close session, Emerson Electric (EMR) was down 4.71% at $143.14. This change lagged the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%. Coming into today, shares of the maker of process controls systems, valves and analytical instruments had gained 10.11% in the past month. In that same time, the Industrial Products sector gained 9.25%, while the S&P 500 gained 0.08%. The investment community will be closely monitoring the performance of Emerson Electric in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.68, marking a 10.53% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.8 billion, reflecting a 5.48% rise from the equivalent quarter last year. For the full year, the Zacks Consensus Estimates are projecting earnings of $6.49 per share and revenue of $18.81 billion, which would represent changes of +8.17% and +4.41%, respectively, from the prior year. It's also important for investors to be aware of any recent modifications to analyst estimates for Emerson Electric. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Emerson Electric currently has a Zacks Rank of #3 (Hold). In the context of valuation, Emerson Electric is at present trading with a Forward P/E ratio of 23.13. This indicates a discount in contrast to its industry's Forward P/E of 23.32. It's also important to note that EMR currently trades at a PEG ratio of 2.4. 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 average PEG ratio for the Manufacturing - Electronics industry stood at 1.85 at the close of the market yesterday. The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% 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. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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 UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks