Emerson Electric Co. (EMR): Today's Featured Industrial Goods Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Emerson Electric ( EMR) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day down 0.2%. By the end of trading, Emerson Electric rose 91 cents (1.8%) to $50.65 on average volume. Throughout the day, 4.1 million shares of Emerson Electric exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in a price between $49.83-$50.95 after having opened the day at $49.84 as compared to the previous trading day's close of $49.74. Other companies within the Industrial Goods sector that increased today were: Real Goods Solar ( RSOL), up 39.9%, Ecotality ( ECTY), up 18.2%, Hydrogenics Corporation ( HYGS), up 13.3%, and Aerovironment Incorporated ( AVAV), up 13.2%.
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Emerson Electric Co., a diversified technology company, engages in designing and supplying products and technology, and providing engineering services and solutions to the industrial, commercial, and consumer markets worldwide. Emerson Electric has a market cap of $35.92 billion and is part of the industrial industry. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 6.5% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Emerson Electric a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Emerson Electric as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, NF Energy Saving ( NFEC), down 11.2%, China Valves Technology ( CVVT), down 11.1%, Highpower International ( HPJ), down 8.6%, and M/I Homes ( MHO), down 7.9%, were all laggards within the industrial goods sector with DR Horton ( DHI) being today's industrial goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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