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Emerson Electric (EMR) Stock Sinks As Market Gains: What You Should Know

Emerson Electric (EMR) closed at $93.04 in the latest trading session, marking a -0.17% move from the prior day. This change lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.16%.

Heading into today, shares of the maker of process controls systems, valves and analytical instruments had gained 2.1% over the past month, outpacing the Industrial Products sector's loss of 3.12% and the S&P 500's loss of 5.39% in that time.

Wall Street will be looking for positivity from Emerson Electric as it approaches its next earnings report date. This is expected to be February 2, 2022. In that report, analysts expect Emerson Electric to post earnings of $0.99 per share. This would mark year-over-year growth of 19.28%. Our most recent consensus estimate is calling for quarterly revenue of $4.47 billion, up 7.43% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.91 per share and revenue of $19.33 billion, which would represent changes of +19.76% and +6.02%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Emerson Electric is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 19 right now. This represents a discount compared to its industry's average Forward P/E of 21.69.

Also, we should mention that EMR has 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. The Manufacturing - Electronics was holding an average PEG ratio of 1.89 at yesterday's closing price.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% 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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