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Barchart
Sohini Mondal

Emerson Electric Stock: Is EMR Underperforming the Industrials Sector?

With a market cap of $74.9 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 $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.

 

EMR stock has declined 11.2% from its 52-week high of $150.27. Shares of the company have fallen marginally over the past three months, underperforming the Industrial Select Sector SPDR Fund’s (XLI) slight rise during the same period. 

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In the longer term, EMR stock is up 7.6% on a YTD basis, lagging behind XLI’s 16.6% increase. Moreover, shares of Emerson Electric have risen marginally over the past 52 weeks, compared to XLI’s 7.3% return over the same time frame.

The stock has been trading below its 50-day average since August. Yet, it has moved above its 200-day moving average since early May.

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Shares of Emerson Electric fell 3.8% on Nov. 5 because the company reported lower-than-expected Q4 2025 revenue of $4.86 billion. Emerson also cited choppy demand for its automation equipment and ongoing difficulty generating stronger margins from its automation-focused business. Although adjusted EPS matched estimates at $1.62, the revenue miss and demand pressures drove the sell-off.

Moreover, EMR stock has underperformed compared to its rival, Parker-Hannifin Corporation (PH). Shares of Parker-Hannifin have surged 23.1% over the past 52 weeks and 35.5% 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 the mean price target of $151.08 is a premium of 13.3% to current levels. 

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