Emerson Electric Co. (EMR): Today's Highlighted Laggard In Industrial Goods

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 lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 0.6%. By the end of trading, Emerson Electric fell 82 cents (-1.4%) to $55.83 on average volume. Throughout the day, 3.2 million shares of Emerson Electric exchanged hands as compared to its average daily volume of 3.4 million shares. The stock ranged in price between $55.66-$56.63 after having opened the day at $56.41 as compared to the previous trading day's close of $56.65. Other companies within the Industrial Goods sector that declined today were: India Globalization Capital ( IGC), down 14.4%, NF Energy Saving ( NFEC), down 11.5%, Metalico ( MEA), down 7.1%, and Ballard Power Systems ( BLDP), down 6.5%.
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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 $41.22 billion and is part of the industrial industry. The company has a P/E ratio of 20.5, above the S&P 500 P/E ratio of 17.7. Shares are up 7% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Emerson Electric a buy, no analysts rate it a sell, and 14 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, increase in stock price during the past year, expanding profit margins, good cash flow from operations and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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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