Emerson Electric Co.

(New York Stock Exchange)
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Slightly Bullish +15

Here's Why Emerson Electric (EMR) Gained But Lagged the ... - sharewise

AI-generated analysis

📉 EMR shares closed at $147.40 with a +1.08% daily gain but lagged the S&P 500 and Nasdaq, while suffering a 7.47% decline over the past month.

🔮 Analysts project upcoming quarterly earnings of $1.84 per share (up 13.58% YoY) and revenue of $5.1 billion (up 5.1%).

📅 Full-year consensus estimates forecast EPS of $6.55 and revenue of $18.89 billion, indicating continued growth for the process controls manufacturer.

💰 The stock trades at a forward P/E of 22.44, offering a discount compared to the industry average of 24.04.

📊 Emerson Electric currently holds a Zacks Rank of #3 (Hold) after consensus EPS projections dipped slightly by 0.05% recently.

⚖️ The company's PEG ratio stands at 2.21, which is notably higher than the industry average of 1.59 for Manufacturing - Electronics.

Bullish Signals
  • Emerson Electric is projected to report quarterly earnings of $1.84 per share, representing a robust 13.58% year-over-year growth.
  • The company's full-year earnings are expected to reach $6.55 per share, reflecting a 9.17% increase from the prior year.
  • Revenue is forecasted to grow by 5.1% in the upcoming quarter to $5.1 billion, with full-year revenue projected at $18.89 billion.
  • The stock currently trades at a forward P/E ratio of 22.44, which represents a discount compared to the industry average of 24.04.
Risk Factors
  • The stock has underperformed its sector and the broader market over the past month, falling 7.47% while the S&P 500 declined only 2.85%.
  • Consensus EPS projections have recently moved 0.05% lower, contributing to a Zacks Rank downgrade to #3 (Hold).
Full Analysis
Emerson Electric (EMR) shares closed at $147.40, posting a modest gain of 1.08% that trailed the broader S&P 500's 1.14% rise and the Nasdaq's 1.69% increase. Despite the daily uptick, the stock has underperformed over the past month, falling 7.47% compared to a 2.85% decline for the S&P 500 and a 7.18% drop in its Industrial Products sector peers. Investors are anticipating the company's upcoming earnings report, with consensus estimates projecting EPS of $1.84 per share, representing a 13.58% year-over-year increase. Revenue is expected to reach $5.1 billion, marking a 5.1% growth from the prior quarter. Full-year projections indicate earnings of $6.55 per share and revenue of $18.89 billion, reflecting anticipated growth rates of 9.17% and 4.85%, respectively. Valuation metrics suggest Emerson Electric trades at a forward P/E ratio of 22.44, which is below the industry average of 24.04. However, the stock carries a PEG ratio of 2.21, significantly higher than the Manufacturing - Electronics industry average of 1.59. The company currently holds a Zacks Rank of #3 (Hold), following a slight downward adjustment in consensus EPS projections by 0.05% over the last month.