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Emerson Electric Co. (EMR), headquartered in St. Louis, Missouri, is a global leader in engineering and industrial automation solutions. With a market cap of $56.7 billion, Emerson is a prominent player in the industrial sector, providing innovative technologies and services that help businesses optimize their operations, improve energy efficiency, and ensure reliable performance across various industries.
Companies valued at $10 billion or more are typically classified as "large-cap stocks," and Emerson Electric is a prime example of this category. Emerson has built a robust market presence through its extensive portfolio of automation solutions, engineering services, and cutting-edge technologies.
EMR shares are trading 17.1% below their 52-week high of $119.53, which they hit on Jul. 16. The stock has seen an 8.9% decline over the last three months compared to the 4.3% returns seen in the Industrial Select Sector SPDR Fund (XLI) during the same period.
In the longer term, EMR is up 1.8% on a YTD basis, and the shares have gained marginally over the past 52 weeks. The XLI has gained 12.3% in 2024 and 21.2% over the past year.
To confirm its bearish trend, EMR has been trading below its 50-day and 200-day moving average since late July.
On Aug. 7, Emerson Electric saw its shares drop by over 7% after reporting Q3 results. The company reported a profit of $329 million, or $1.43 per share, surpassing Wall Street expectations of $1.42 per share. Also, the company's revenue of $4.38 billion exceeded analysts’ estimates of $4.45 billion. EMR expects full-year earnings in the range of $5.45 to $5.50 per share.
Highlighting the contrast in performance, rival 3M Company (MMM) has outperformed EMR and XLI, with a 42.8% gain on a YTD basis.
Despite the stock's weak recent price performance, analysts are optimistic about EMR's prospects. The stock has a consensus rating of "Strong Buy" from 20 analysts in coverage. The mean price target is $126.21, reflecting a 27.4% premium over current levels.
On the date of publication, Rashmi Kumari 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.
