Emerson Electric (EMR) Stock Sinks As Market Gains: Here's Why

Company Performance - Emerson Electric (EMR) closed at $94.39, reflecting a -1.45% change from the previous day, underperforming the S&P 500 which gained 0.08% [1] - The stock has decreased by 1.78% over the past month, compared to a loss of 0.83% in the Industrial Products sector and a gain of 2.4% in the S&P 500 [1] - The upcoming earnings report is scheduled for February 7, 2024, with an expected EPS of$ 1.04, indicating a 33.33% increase from the same quarter last year, and projected revenue of $3.89 billion, a 15.46% rise year-over-year [1] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of$ 5.29 per share and revenue of $17.32 billion, representing increases of +19.14% and +14.23% respectively compared to the previous year [2] Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Emerson Electric reflect short-term business trends, with upward revisions indicating positive sentiment towards the company's operations [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Emerson Electric at 3 (Hold) [3] - Emerson Electric has a Forward P/E ratio of 18.12, which is lower than the industry average of 20.31, and a PEG ratio of 1.77, compared to the Manufacturing - Electronics industry average of 1.85 [3] Industry Context - The Manufacturing - Electronics industry is part of the Industrial Products sector and holds a Zacks Industry Rank of 10, placing it in the top 4% of over 250 industries [4] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating strong potential for growth within this sector [4]