Today's Post-Market Laggard Is Emerson Electric (EMR) - TheStreet

Trade-Ideas LLC identified

Emerson Electric

(

EMR

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Emerson Electric as such a stock due to the following factors:

  • EMR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $183.6 million.
  • EMR is down 2.5% today from today's close.

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More details on EMR:

Emerson Electric Co. provides technology and engineering solutions to industrial, commercial, and consumer markets worldwide. It operates through five segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. The stock currently has a dividend yield of 3.8%. EMR has a PE ratio of 13. Currently there are 2 analysts that rate Emerson Electric a buy, 2 analysts rate it a sell, and 14 rate it a hold.

The average volume for Emerson Electric has been 4.4 million shares per day over the past 30 days. Emerson Electric has a market cap of $32.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.16 and a short float of 3.7% with 6.84 days to cover. Shares are down 18.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Emerson Electric as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 58.0% when compared to the same quarter one year prior, rising from $410.00 million to $648.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, EMERSON ELECTRIC CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 43.45% is the gross profit margin for EMERSON ELECTRIC CO which we consider to be strong. Regardless of EMR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EMR's net profit margin of 11.14% compares favorably to the industry average.
  • EMR has underperformed the S&P 500 Index, declining 21.84% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has decreased to $1,101.00 million or 21.80% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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