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

Emerson Electric (EMR) closed at $111.80 in the latest trading session, marking a -0.52% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.33%.Shares of the maker of process controls systems, valves and analytical instruments witnessed a loss of 9.68% over the previous month, trailing the performance of the Industrial Products sector with its loss of 5.92% and the S&P 500's loss of 7.48%.The upcoming earnings release of Emerson Electric will be of great interest to investors. The company's upcoming EPS is projected at $1.41, signifying a 3.68% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4.38 billion, showing a 0.14% escalation compared to the year-ago quarter.For the full year, the Zacks Consensus Estimates are projecting earnings of $5.97 per share and revenue of $17.86 billion, which would represent changes of +8.74% and +2.12%, respectively, from the prior year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 company's business outlook.Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.2% higher. Right now, Emerson Electric possesses a Zacks Rank of #2 (Buy).In terms of valuation, Emerson Electric is currently trading at a Forward P/E ratio of 18.82. This denotes a discount relative to the industry's average Forward P/E of 23.76.It is also worth noting that EMR currently has a PEG ratio of 2.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.93.The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 35, this industry ranks in the top 14% of all industries, numbering over 250.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.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want 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