/Emerson%20Electric%20Co_%20magnified%20logo%20by-%20Casimiro%20PT%20via%20Shutterstock.jpg)
Based in Saint Louis, Missouri, Emerson Electric Co. (EMR) is a global technology and software company serving diverse industrial, commercial, and consumer markets. With a market cap of $59.8 billion, the company provides advanced solutions in automation, control systems, and asset optimization to drive efficiency and performance across multiple sectors.
Shares of this industrial conglomerate have underperformed the broader market over the past 52 weeks. EMR has gained 8.4% over this time frame, while the broader S&P 500 Index ($SPX) has soared 18.2%. In 2024, EMR stock is up 7.5%, compared to SPX's 11.5% gains on a YTD basis.
Zooming in further, EMR also lagged behind the S&P 500 Industrial Sector SPDR's (XLI) 13.7% returns over the past 52 weeks and an 8.7% YTD increase.
Emerson Electric has struggled over the past year due to revenue losses from exiting the Climate Technologies segment and disruptions from its ongoing restructuring efforts. Moreover, the stock dipped 7.7% on Aug. 7 due to concerns about the impact of its restructuring and the sale of its stake in the Copeland joint venture. However, the following day, shares rose 5.1% after the company reported a strong Q3 earnings performance, driven by increased demand for measurement instruments and an 11% revenue boost.
For the current fiscal year, ending in September, analysts expect EMR’s EPS to grow 23.2% year over year to $5.47. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on another occasion.
Among the 20 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buys,” one “Moderate Buy,” and two “Holds.”
This configuration is slightly more bullish than three months before, with 16 analysts suggesting a "Strong Buy."
On Aug. 8, Wells Fargo analyst Joe O’Dea assigned a "Buy" rating to Emerson Electric, with a price target of $128.
The mean price target of $131 represents a premium of 25.2% to EMR's current levels. The Street-high price target of $140 implies a potential upside of 33.8% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
