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Saint Louis, Missouri-based Emerson Electric Co. (EMR) is a global technology and engineering leader, operating in the industrial, commercial, and consumer markets. With a market cap of $67.4 billion, it provides automation, control systems, and asset optimization solutions, focusing on enhancing operational efficiency, sustainability, and safety across various industries.
Shares of the process control manufacturer have lagged behind the broader market over the past 52 weeks. EMR has climbed 27.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 32.7%. In 2024, EMR's shares gained 20.9%, compared to SPX's 21.2% YTD return.
Further, EMR has underperformed the Industrial Select Sector SPDR Fund's (XLI) nearly 34% gain over the past 52 weeks. But, the stock has slightly outpaced the XLI's 19.4% increase on a YTD basis.
Emerson shares jumped 7.2% on Nov. 5 following its stronger-than-expected Q4 fiscal 2024 results, with adjusted earnings of $1.48 per share surpassing estimates and net sales of $4.6 billion beating forecasts, driven largely by the Intelligent Devices segment. Strong growth in the Software and Control Automation Solutions segment, which surged 41% year-over-year, also contributed to positive investor sentiment. Additionally, Emerson’s fiscal 2025 guidance, projecting 3.5% - 5.5% net sales growth and adjusted earnings per share in the $5.85 - $6.05 range, further boosted investor sentiment.
For the current fiscal year, ending in September 2025, analysts expect EMR's EPS to grow 8.6% year-over-year to $5.96. The company's earnings surprise history is promising. It beat the consensus estimates in all of the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 14 "Strong Buys," one "Moderate Buy," four "Holds,” and one "Moderate Sell."
This configuration is less bullish than three months ago, with 16 “Strong Buy” ratings on the stock.
On Nov. 6, Barclays raised Emerson Electric's price target to $116, maintaining an Equal Weight rating, citing a potentially positive response due to the Aspen Technology (AZPN) deal closure, an in-line Q1 outlook, and current negative investor positioning.
As of writing, EMR is trading below the mean price target of $126.80. The Street-high price target of $139 implies a modest potential upside of 18.1% 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.
