If you watched Nvidia and the other semiconductor chip stocks soar and felt as if the artificial intelligence (AI) train left without you, take a breath. The thing about AI is that it doesn't run on software alone. It runs on a staggering amount of physical stuff: cooling systems, power controls, transmission lines, and the crews who install them all.
Some industrial companies supplying the backbone materials and services for AI haven't been bid up nearly as far as the marquee names, which means the door isn't closed. Here are three industrial stocks that still look worth a serious look.
Image source: Getty Images.
1. nVent Electric nVent Electric (NVT -1.09%) sits right in the sweet spot of one of AI's biggest headaches: excess heat. Packing thousands of scorching-hot chips into a data center requires advanced liquid cooling, and nVent has become a go-to supplier, having deployed more than 2 gigawatts of liquid cooling capacity already. Its momentum is real, with recent quarterly sales up more than 50% and its systems-protection business up even faster, and it was added to Nvidia's partner network, a stamp of approval that opens doors with the largest AI builders. With a next-generation cooling and power lineup rolling out in 2026, nVent is a direct play on data center growth that has flown under most investors' radars compared with the flashier cooling names.
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2. Emerson Electric Emerson Electric (EMR +0.27%) is the sleep-well option of the group. It makes the automation and power-management systems that keep complex facilities running, and data centers have become a booming market for it. Emerson was chosen to automate the on-site power generation for a massive 1.7-gigawatt AI data center, and orders for its flagship control platform recently jumped 74%, driven largely by these behind-the-meter power projects.
What I like here is the balance: Emerson is a Dividend King (a Dividend King is a company that's grown its dividend payment for at least 50 consecutive years. It has 69 straight years of payout increases and trades at a far more grounded valuation than pure AI plays. You get genuine AI exposure without paying a nosebleed price, plus a growing dividend while you wait.
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3. Hubbell Hubbell (HUBB -0.37%) is the quiet backbone of the group. It makes the unglamorous but essential electrical and grid gear, the connectors, enclosures, and utility hardware, that both power companies and data centers rely on to move electricity safely. As AI drives a surge in data center construction, Hubbell has leaned in hard: It recently lifted its 2026 profit forecast on strong demand from data centers and utilities, and it has been bolting on acquisitions, including DMC Power and a roughly $3 billion deal for NSI Industries, to deepen its reach into data-center power infrastructure. Both its electrical and utility segments are growing at double-digit rates. It's a silent leader in a market for data center electrical infrastructure worth tens of billions, and it typically trades at a friendlier valuation than the pure-play AI names.
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The catch worth naming Let me be honest, because "screaming buy" can be a dangerous phrase. None of these three stocks is dirt cheap now that the market has caught on to the AI-infrastructure story. They are more reasonably priced than Nvidia and the headline cooling and power stocks, but they aren't bargain-bin. All three also depend on having data center construction stay hot, so a pullback in that spending would hurt them all. These are relative values riding a powerful trend, not risk-free giveaways.
Here is the encouraging part: You didn't miss the whole AI trade, just the most obvious slice of it. The build-out still needs cooling, power, and grid connections for years to come, and nVent, Emerson, and Hubbell each sell something essential to that effort at prices friendlier than the stocks everyone already talks about. I would treat them as a second chance to invest in AI through the back door, buying gradually and keeping the data center cycle in mind. Sometimes the smartest way to catch a train you missed is to hop on at the next station.
Emerson Electric (EMR - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this maker of process controls systems, valves and analytical instruments have returned -2.7%, compared to the Zacks S&P 500 composite's +0.3% change. During this period, the Zacks Manufacturing - Electronics industry, which Emerson Electric falls in, has lost 5.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Emerson Electric is expected to post earnings of $1.68 per share, indicating a change of +10.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.49 points to a change of +8.2% from the prior year. Over the last 30 days, this estimate has changed -0.1%.
For the next fiscal year, the consensus earnings estimate of $7.14 indicates a change of +10% from what Emerson Electric is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Emerson Electric.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Emerson Electric, the consensus sales estimate of $4.79 billion for the current quarter points to a year-over-year change of +5.3%. The $18.79 billion and $19.71 billion estimates for the current and next fiscal years indicate changes of +4.3% and +4.9%, respectively.
Last Reported Results and Surprise HistoryEmerson Electric reported revenues of $4.56 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $1.54 for the same period compares with $1.48 a year ago.
Compared to the Zacks Consensus Estimate of $4.6 billion, the reported revenues represent a surprise of -0.76%. The EPS surprise was 0%.
Over the last four quarters, Emerson Electric surpassed consensus EPS estimates two times. The company topped consensus revenue estimates times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Emerson Electric is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Emerson Electric. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Emerson Electric (EMR - Free Report) closed the most recent trading day at $136.58, moving -2.12% from the previous trading session. This change lagged the S&P 500's 0.19% loss on the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.05%.
The maker of process controls systems, valves and analytical instruments's stock has dropped by 7.38% in the past month, falling short of the Industrial Products sector's loss of 2.49% and the S&P 500's gain of 0.55%.
Market participants will be closely following the financial results of Emerson Electric in its upcoming release. The company plans to announce its earnings on August 4, 2026. The company's earnings per share (EPS) are projected to be $1.68, reflecting a 10.53% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.79 billion, up 5.3% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.49 per share and revenue of $18.79 billion. These totals would mark changes of +8.17% and +4.28%, respectively, from last year.
Any recent changes to analyst estimates for Emerson Electric should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. Emerson Electric presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Emerson Electric is presently being traded at a Forward P/E ratio of 21.5. This represents a discount compared to its industry average Forward P/E of 23.05.
We can also see that EMR currently has a PEG ratio of 2.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.61.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 102, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
New software solutions integrate planning and scheduling processes to accelerate decision-making
Crude Schedule Optimization and Multi-Blend Optimization available in a single, integrated platform Improves refinery margins by automating time-intensive manual workflows Enables refineries to respond more quickly to market volatility and optimize product blending , /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) has introduced software that automates two of refining's most time-intensive and margin-critical processes: crude scheduling and product blending. The new solutions enable refineries to increase operating margins, improve efficiency and respond faster to market changes.
Customers use Aspen Unified Scheduling™ (AUS) to eliminate the disconnected tools and manual data gathering that make scheduling harder during volatile markets. AUS now adds two new products – Crude Schedule Optimization and Multi-Blend Optimization – that bring planning, scheduling and blending into one platform. As a result, customers can turn optimal plans into realistic schedules fast enough to keep up with changing market conditions.
"Refinery schedulers are managing more complexity and greater crude market volatility, with the same hours in the day," said Claudio Fayad, chief technology officer at Emerson's Aspen Technology business. "By automating the most time-intensive workflows within a unified platform, our solutions free experienced teams to focus on higher-value decisions while enabling newer engineers to contribute faster. The result is stronger margins and better operational decisions across the organization."
Optimizing Crude Scheduling
Crude Schedule Optimization takes refinery data from Aspen Unified PIMS™ and automatically determines the optimal crude receipts, transfers, blends and production schedules to maximize margins. By minimizing manual work and enabling rapid "what if" scenario testing, refineries can improve scheduling precision, thereby reducing errors and enabling rapid response to crude market fluctuations and price opportunities.
Maximizing Blending Efficiency
Multi-Blend Optimization simultaneously optimizes the recipe of each individual batch of blended product within the scheduling window. It continuously optimizes product qualities and balances production against market conditions and operational constraints, while ensuring compliance with quality specifications. By making optimal use of available blend components, refineries reduce quality giveaway, lower blend component costs and improve profitability.
Both solutions are offered as separately licensed products available within Aspen Unified Scheduling. As part of the broader Aspen Unified™ solution, Aspen Unified Scheduling connects data, optimization and execution – reducing manual intervention, improving operational consistency and accelerating the speed of critical business decisions.
Additional Resources:
Learn more about Aspen Unified Scheduling Join the Emerson Exchange 365 Community Visit Emerson's Industrial Software Page on LinkedIn Connect with Aspen Technology on LinkedIn Connect with Emerson via X Facebook LinkedIn YouTube About Emerson
Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.
, /PRNewswire/ -- Emerson (NYSE: EMR) will report its third quarter results after market close on Tuesday, August 4, 2026. Emerson senior management will discuss the results during an investor conference call that same day, beginning at 4:30 p.m. Eastern Time, 3:30 p.m. Central Time.
All interested parties may listen to the live conference call and view presentation slides, which will be posted in advance of the call, by going to the Investors area of Emerson's website at https://ir.emerson.com and completing a brief registration form. A replay of the conference call will be available for three months following the webcast at the same location on the Emerson website.
About Emerson
Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.
Emerson uses our Investor Relations website, https://ir.emerson.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Emerson Electric (EMR - Free Report) closed at $135.38 in the latest trading session, marking a -2.52% move from the prior day. This move lagged the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.55%.
The maker of process controls systems, valves and analytical instruments's stock has dropped by 2.93% in the past month, falling short of the Industrial Products sector's gain of 5.3% and the S&P 500's gain of 4.28%.
The investment community will be paying close attention to the earnings performance of Emerson Electric in its upcoming release. The company is expected to report EPS of $1.68, up 10.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.8 billion, up 5.48% from the year-ago period.
EMR's full-year Zacks Consensus Estimates are calling for earnings of $6.49 per share and revenue of $18.81 billion. These results would represent year-over-year changes of +8.17% and +4.41%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Emerson Electric. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, there's been a 0.06% fall in the Zacks Consensus EPS estimate. Emerson Electric presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Emerson Electric is currently being traded at a Forward P/E ratio of 21.4. Its industry sports an average Forward P/E of 22.61, so one might conclude that Emerson Electric is trading at a discount comparatively.
One should further note that EMR currently holds a PEG ratio of 2.22. 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. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.68.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Emerson Electric (EMR - Free Report) .
Emerson Electric currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 28 brokerage firms. An ABR of 1.92 approximates between Strong Buy and Buy.
Of the 28 recommendations that derive the current ABR, 15 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 53.6% and 3.6% of all recommendations.
Brokerage Recommendation Trends for EMR
Check price target & stock forecast for Emerson Electric here>>>
While the ABR calls for buying Emerson Electric, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in EMR?Looking at the earnings estimate revisions for Emerson Electric, the Zacks Consensus Estimate for the current year has declined 0.1% over the past month to $6.49.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Emerson Electric. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Emerson Electric with a grain of salt.
Emerson Electric (EMR - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this maker of process controls systems, valves and analytical instruments have returned -3%, compared to the Zacks S&P 500 composite's +2.2% change. During this period, the Zacks Manufacturing - Electronics industry, which Emerson Electric falls in, has lost 1.4%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Emerson Electric is expected to post earnings of $1.68 per share, indicating a change of +10.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0% over the last 30 days.
The consensus earnings estimate of $6.49 for the current fiscal year indicates a year-over-year change of +8.2%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.14 indicates a change of +10% from what Emerson Electric is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Emerson Electric is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Emerson Electric, the consensus sales estimate for the current quarter of $4.8 billion indicates a year-over-year change of +5.5%. For the current and next fiscal years, $18.81 billion and $19.72 billion estimates indicate +4.4% and +4.8% changes, respectively.
Last Reported Results and Surprise HistoryEmerson Electric reported revenues of $4.56 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $1.54 for the same period compares with $1.48 a year ago.
Compared to the Zacks Consensus Estimate of $4.6 billion, the reported revenues represent a surprise of -0.76%. The EPS surprise was 0%.
Over the last four quarters, Emerson Electric surpassed consensus EPS estimates two times. The company topped consensus revenue estimates times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Emerson Electric is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Emerson Electric. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Emerson Electric (EMR - Free Report) closed the most recent trading day at $137.91, moving -2.58% from the previous trading session. This move lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had gained 1.79% lagged the Industrial Products sector's gain of 4.88% and the S&P 500's gain of 2.14%.
The upcoming earnings release of Emerson Electric will be of great interest to investors. The company is forecasted to report an EPS of $1.68, showcasing a 10.53% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.8 billion, indicating a 5.48% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.49 per share and a revenue of $18.81 billion, representing changes of +8.17% and +4.41%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Emerson Electric. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. Right now, Emerson Electric possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Emerson Electric is presently trading at a Forward P/E ratio of 21.8. This valuation marks a discount compared to its industry average Forward P/E of 22.99.
Also, we should mention that EMR has a PEG ratio of 2.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.73.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 34% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Emerson Electric (EMR - Free Report) closed the most recent trading day at $139.52, moving -2.54% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.66%.
Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had gained 0.79% lagged the Industrial Products sector's gain of 10.67% and outpaced the S&P 500's loss of 1.21%.
The investment community will be paying close attention to the earnings performance of Emerson Electric in its upcoming release. The company's upcoming EPS is projected at $1.68, signifying a 10.53% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.8 billion, up 5.48% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.49 per share and a revenue of $18.81 billion, indicating changes of +8.17% and +4.41%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Emerson Electric. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 witnessed a 0.01% increase. Emerson Electric is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Emerson Electric is presently trading at a Forward P/E ratio of 22.04. Its industry sports an average Forward P/E of 23.39, so one might conclude that Emerson Electric is trading at a discount comparatively.
We can additionally observe that EMR currently boasts a PEG ratio of 2.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Electronics was holding an average PEG ratio of 1.84 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
Emerson Electric (EMR - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of process controls systems, valves and analytical instruments have returned -0.2% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Manufacturing - Electronics industry, to which Emerson Electric belongs, has gained 0.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Emerson Electric is expected to post earnings of $1.68 per share for the current quarter, representing a year-over-year change of +10.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
For the current fiscal year, the consensus earnings estimate of $6.49 points to a change of +8.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $7.14 indicates a change of +10% from what Emerson Electric is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Emerson Electric.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Emerson Electric, the consensus sales estimate for the current quarter of $4.8 billion indicates a year-over-year change of +5.5%. For the current and next fiscal years, $18.81 billion and $19.72 billion estimates indicate +4.4% and +4.8% changes, respectively.
Last Reported Results and Surprise HistoryEmerson Electric reported revenues of $4.56 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $1.54 for the same period compares with $1.48 a year ago.
Compared to the Zacks Consensus Estimate of $4.6 billion, the reported revenues represent a surprise of -0.76%. The EPS surprise was 0%.
Over the last four quarters, Emerson Electric surpassed consensus EPS estimates two times. The company topped consensus revenue estimates times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Emerson Electric is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Emerson Electric. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest trading session, Emerson Electric (EMR - Free Report) closed at $141.44, marking a -1.19% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.1% for the day. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.43%.
Coming into today, shares of the maker of process controls systems, valves and analytical instruments had gained 1.54% in the past month. In that same time, the Industrial Products sector gained 6.25%, while the S&P 500 lost 1.34%.
The investment community will be closely monitoring the performance of Emerson Electric in its forthcoming earnings report. The company is predicted to post an EPS of $1.68, indicating a 10.53% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $4.8 billion, indicating a 5.48% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.49 per share and a revenue of $18.81 billion, representing 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. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Emerson Electric is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Emerson Electric has a Forward P/E ratio of 22.04 right now. This denotes a discount relative to the industry average Forward P/E of 22.61.
It's also important to note that EMR currently trades at a PEG ratio of 2.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. EMR's industry had an average PEG ratio of 1.8 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Emerson Electric (EMR - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this maker of process controls systems, valves and analytical instruments have returned +13.9%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Manufacturing - Electronics industry, which Emerson Electric falls in, has gained 4.9%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Emerson Electric is expected to post earnings of $1.68 per share for the current quarter, representing a year-over-year change of +10.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $6.49 for the current fiscal year indicates a year-over-year change of +8.2%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.13 indicates a change of +9.8% from what Emerson Electric is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Emerson Electric is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Emerson Electric, the consensus sales estimate of $4.8 billion for the current quarter points to a year-over-year change of +5.5%. The $18.81 billion and $19.72 billion estimates for the current and next fiscal years indicate changes of +4.4% and +4.8%, respectively.
Last Reported Results and Surprise HistoryEmerson Electric reported revenues of $4.56 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $1.54 for the same period compares with $1.48 a year ago.
Compared to the Zacks Consensus Estimate of $4.6 billion, the reported revenues represent a surprise of -0.76%. The EPS surprise was 0%.
Over the last four quarters, Emerson Electric surpassed consensus EPS estimates two times. The company topped consensus revenue estimates times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Emerson Electric is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Emerson Electric. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest close session, Emerson Electric (EMR - Free Report) 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.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Emerson Electric (EMR - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Emerson Electric currently has an average brokerage recommendation (ABR) of 1.88, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.88 approximates between Strong Buy and Buy.
Of the 27 recommendations that derive the current ABR, 15 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 55.6% and 3.7% of all recommendations.
Brokerage Recommendation Trends for EMR
Check price target & stock forecast for Emerson Electric here>>>
While the ABR calls for buying Emerson Electric, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is EMR Worth Investing In?In terms of earnings estimate revisions for Emerson Electric, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.49.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Emerson Electric. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Emerson Electric.
Emerson Electric (EMR - Free Report) ended the recent trading session at $146.52, demonstrating a +2.41% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.65%. Meanwhile, the Dow experienced a rise of 0.92%, and the technology-dominated Nasdaq saw an increase of 3.07%.
Heading into today, shares of the maker of process controls systems, valves and analytical instruments had gained 7.53% over the past month, outpacing the Industrial Products sector's gain of 0.53% and the S&P 500's gain of 0.48%.
The upcoming earnings release of Emerson Electric will be of great interest to investors. The company is expected to report EPS of $1.68, up 10.53% from the prior-year quarter. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $6.49 per share and a revenue of $18.81 billion, signifying shifts of +8.17% and +4.41%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Emerson Electric. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Right now, Emerson Electric possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Emerson Electric is presently being traded at a Forward P/E ratio of 22.03. For comparison, its industry has an average Forward P/E of 22.6, which means Emerson Electric is trading at a discount to the group.
One should further note that EMR currently holds a PEG ratio of 2.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.77.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 103, finds itself in the top 43% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Emerson Electric (EMR) came out with quarterly earnings of $1.54 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.48 per share a year ago.
The headline numbers for Emerson Electric (EMR) give insight into how the company performed in the quarter ended March 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Emerson Electric Co. is a mature industrial company with slow growth, limited exposure to AI-driven data center capex, and a premium valuation. EMR's recent quarter showed 3% revenue and 4% earnings growth, reflecting dependence on broad macro drivers rather than high-growth sectors. Despite solid margins and over $3bn FCF, EMR's serial M&A and portfolio strategy have not enhanced growth or returns.
EMR posts modest Q2 growth as pricing and demand offset geopolitical headwinds, while backlog strength and orders signal momentum into a stronger second half.
Emerson Electric Co. is rated Buy with a $197/share target, leveraging U.S. reindustrialization and global data center expansion. EMR can benefit from $1.4T utility investments in power infrastructure and potential LNG market shifts due to Middle East disruptions. Software and systems, especially grid management and AI-embedded solutions, are driving robust order growth and future margin expansion.
AspenTech AVA enables customers to act faster, develop more informed strategies, improve operational reliability HOUSTON, May 11, 2026 /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) today introduced the AspenTech AVA™ AI platform, specifically designed for industrial companies to accelerate AI adoption across the enterprise for measurable business impact. Offering agentic, domain-aware AI capabilities, AVA delivers the agility, efficiency and autonomy companies need to respond faster to operating conditions, continuously improve performance using trusted domain context and act with greater confidence through AI-assisted recommendations embedded directly in operations.
Enhanced AspenTech Inmation OT Data Fabric to accelerate enterprise-scale intelligence HOUSTON, May 13, 2026 /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) today announced major advancements to the AspenTech Inmation™ OT Data Fabric, establishing it as the foundational enterprise-scale intelligence layer for the AspenTech Inmation Data Platform. The enhanced Inmation OT Data Fabric creates a modern industrial data backbone designed to scale with customers as their digital needs evolve, supporting advanced analytics, AI capabilities and the development of an enterprise operations platform that connects data, context and decision-making across the organization.
NI Nigel™ AI to expand into code generation and cross-platform intelligence, embedding AI automation across the test lifecycle FORT WORTH, Texas, May 13, 2026 /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) today announced the expansion of NI Nigel™ AI across its test software portfolio, introducing new prompt-based code generation in the NI LabVIEW+ Suite and further evolving the NI platform into an integrated, AI-ready test automation platform. These enhancements will allow aerospace, semiconductor, transportation and other mission-critical customers to develop, test and deliver products to market faster while meeting strict reliability and safety requirements.
In a software-led global industrial complex that's going strong on digitalization, the mention of ‘big data' has become routine. But process industries say it is ‘quality data' and not randomly gathered digital data mountains that make the difference.
Report highlights continued investments in employees, customers, suppliers and communities, progress toward sustainability targets ST. LOUIS, May 19, 2026 /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) today released its 2025 Sustainability Report, highlighting the Company's progress in advancing innovation and improving operational efficiency while driving meaningful environmental impact internally and for customers.
Advanced sensing to digitalize industrial corrosion monitoring for improved decision making Emerson and Aramco sign an agreement to co-develop next-generation corrosion management solutions for the Saudi Arabian Oil Company (Aramco), one of the world's leading integrated energy and chemicals companies. Emerson's advanced corrosion monitoring platform delivers real-time insights that enable the energy industry to prevent unplanned downtime and boost production efficiency.
Zacks.com users have recently been watching Emerson Electric (EMR) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
