Tim Brown: Emerson Makes the Cut

The technology company could be a great addition to any roster.
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The season's coming around quickly, and it's getting to the time of year when players on the fringe have to start worrying -- seriously worrying -- about their jobs.

Every year, a bunch of players on teams all around the league are sent packing. Some of them are rookies who just didn't make the cut. Some are veterans who have diminishing skills or are too expensive. Teams decide they are not worth the price tag or the roster spot. Still others may not be fully recovered from injuries.

Many players -- especially the younger ones -- get put on a team's practice squad. That keeps them fresh and practicing at a high level because they play against the players that made the real team.

When picking a stock, I want a starter. I want a company that is ready to play today, and if I am going to put it on my roster, I have to find value. That means I have to get it at a nice bargain so I can more bang for my buck.

I think you should check out

Emerson Electric

(EMR) - Get Report

. It's a company I like and think could be a great addition to any roster. It's a diversified global technology company. It designs and supplies product technology and delivers engineering services to industrial, commercial and consumer markets around the world. It has five major areas of business, including process management, industrial automation, network power, climate technologies and appliance and tools.

The stock closed at $49.43 on Friday. While the stock is up about 6.75% in the last year, it's currently trading well of its high of about $59. It is much closer to its 52-week low of $44.87.

When you check out the stats, you should be impressed. I am. Emerson has a return on equity of almost 26%, while its institutional support exceeds 75%. That shows me that the stock should have a basic amount of stability built in. Its forward price-to-earnings ratio stands at 14.54, which means that investor confidence isn't terrible but that the stock is still undervalued. For me, that's a good enough sign.

On the balance sheet, this company has $2.06 billion in cash and $3.24 billion in operating cash flow. It offers value in a number of areas and makes me confident that I will cover some ground and chew up some nice yardage with Emerson on my team. So as I look to finalize my roster, Emerson will make the cut.

Keep moving the chains!

At the time of publication, Brown had no positions in stocks mentioned, although positions may change at any time.

Tim Brown played 16 seasons in the NFL, where he made nine Pro Bowls. After a brief stint with the Tampa Bay Buccaneers in 2004, Brown retired as an Oakland Raider. He was a Heisman Trophy winner in college for Notre Dame.