/Emerson%20Electric%20Co_%20sign%20on%20building-by%20SNEHIT%20PHOTO%20via%20Shutterstock.jpg)
With a market cap of $66.9 billion, Emerson Electric Co. (EMR) is a global technology and engineering company specializing in innovative solutions for industrial, commercial, and residential markets. The company is organized into seven segments: Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, Test & Measurement, and AspenTech.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Emerson Electric fits this criterion perfectly. Emerson’s advanced technologies include intelligent instrumentation, asset optimization software, automated test systems, and cybersecurity solutions.
Despite a 17.1% decline from its 52-week high of $134.85, shares of the Saint Louis, Missouri-based company have declined 13.4% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) nearly 7% drop over the same time frame.
In the longer term, EMR stock is down 9.8% on a YTD basis, lagging behind SPX’s 4.5% decline. Moreover, shares of Emerson Electric have risen 1.5% over the past 52 weeks, compared to the 9.6% return of the SPX over the same time frame.
Yet, EMR has been trading above its 50-day and 200-day moving averages since late September last year. But, the stock has fallen below its 50-day moving average since January.
Despite Emerson Electric reporting a stronger-than-expected Q1 2025 adjusted EPS of $1.38, shares fell 2.3% on Feb. 5. The company’s revenue of $4.2 billion missed analyst expectations, raising worries about demand softness, particularly as Discrete Automation sales declined by 5%. While profit margins improved significantly, with EBITA rising to 28%, investors were cautious about Emerson’s uneven regional performance, as Europe saw a 2% sales decline despite growth in the Americas and Asia.
In addition, EMR has underperformed compared to its rival, Parker-Hannifin Corporation (PH), which has gained 12.9% over the past 52 weeks and a decline of 4.6% on a YTD basis.
Despite EMR’s weak performance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 23 analysts covering the stock, and as of writing, EMR is trading below the mean price target of $143.
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.
