EMR stock: buy or sell?
May 20th, 2019
Emerson Electric Co., a technology and engineering company, provides various solutions to industrial, commercial, and residential markets worldwide.
Should I buy EMR stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, Emerson Electric stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Emerson Electric stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we detected 7 ratings published for EMR stock in the last month. The general sentiment of these ratings is bullish for EMR stock, with 6 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-2-6||Credit Suisse Group||n/a||Outperform|
|2019-1-3||Credit Suisse Group||Neutral||Outperform|
EMR stock analysis
Emerson Electric shares slightly fell -1.42% to $63.90 today.
Emerson Electric shares slightly fell -1.42% to $63.90 today. Since last May 7th when EMR stock price broke down the SMA200d line, it slid $-5.73 per share (-8.23%).
Emerson Electric shares depreciated -1.42% this week, ending at $63.90. Counting this, it's been 5 red weeks in a row, sliding $-8.07 or a -11.28%. Early May EMR collapsed a scary -6.23% in just one week.
Emerson Electric is in a clear downtrend, marking consecutive falling peaks and bottoms. Now is trading in between the - range. If the support holds the price, this might mark a double bottom configuration and create a flat-base to reverse this downtrend. Since price and 40-weeks moving average lines crossed down early May, EMR fell $-6.67 per share (-9.45%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support. Far behind is the all-time high Emerson Electric marked early October and since then the price is -18.05% below that top.
EMR stock price history
EMR stock historical price chart
EMR stock reached all-time highs on October with a price of $77.97.
EMR stock price target is $79.00How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We detected 5 price targets for EMR stock posted in the last month:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-2-8||Morgan Stanley||Set Price Target||n/a||$77.00||-|
|2019-2-6||Credit Suisse Group||Reiterates||$70.00||$75.00||7.1%|
Financials and fundamental analysis
Earnings date and Earnings per ShareFor the last 13 days, when Emerson Electric presented its last earnings report, it fell a fatal -8.23%. As soon as we get its actual EPS from the earnings report, we will extend this report.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Emerson Electric annual turnover climbed a super good 14.05% to $17,408.00 million USD from $15,264.00 marked in 2017. However, its profit margin (compared to sales) grew to 12.66%, that is $2,203.00 million. Emerson Electric fiscal year ends in September, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Emerson Electric TTM sales up to were $13,491.00 and earnings $1,794.00 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Emerson Electric business evolution since September 2018: Annual sales up to , compared to lastest yearly report, plummed a hair-raising -22.50%. Nevertheless, profit margin (net income/sales) remained stable at 12.66%.
|2013||$24,650 M||-||$2,000 M8.1%||-|
|2014||$24,537 M||-0.46%||$2,147 M8.8%||7.35%|
|2015||$22,304 M||-9.10%||$2,710 M12.2%||26.22%|
|2016||$14,522 M||-34.89%||$1,635 M11.3%||-39.67%|
|2017||$15,264 M||5.11%||$1,518 M9.9%||-7.16%|
|2018||$17,408 M||14.05%||$2,203 M12.7%||45.13%|
|TTM||$13,491 M||-22.50%||$1,794 M13.3%||-18.57%|
Quarterly financial resultsEmerson Electric posted M in sales for 2019-Q1, a -100.00% decline compared to previous quarter. Reported quarter earnings marked million with a profit margin of . Profit margin remained constant a 0.00% compared to previous quarter when profit margin was 11.21%. When comparing sales to same quarter last year, Emerson Electric sales marked a dreadful correction and collapsed a -100.00%. Looking back to recent quarterly results, Emerson Electric posted 2 positive quarters in a row.
|2017-Q1||$3,570 M||-||$376 M10.5%||-|
|2017-Q2||$4,040 M||13.17%||$407 M10.1%||8.24%|
|2017-Q3||$4,435 M||9.78%||$504 M11.4%||23.83%|
|2017-Q4||$3,816 M||-13.96%||$392 M10.3%||-22.22%|
|2018-Q1||$4,248 M||11.32%||$482 M11.3%||22.96%|
|2018-Q2||$4,456 M||4.90%||$712 M16.0%||47.72%|
|2018-Q3||$4,888 M||9.69%||$617 M12.6%||-13.34%|
|2018-Q4||$4,147 M||-15.16%||$465 M11.2%||-24.64%|
Emerson Electric ownershipWhen you are planning to buy a stock, it's worth to overview its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Emerson Electric, 0.64% of all outstanding shares are owned by its staff.
In case of Emerson Electric stock, 74.20% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for EMR stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Emerson Electric:
|Market cap||$39.3 B||$40.4 B||$19.4 B||$3.5 B||$93.3 B|
|Total shares||614.6 M||2,130.0 M||227.8 M||193.5 M||715.9 M|
|Float shares||610.8 M||1,780.0 M||224.5 M||169.3 M||635.6 M|
|- Institutional holdings (%)||74.2%||4.5%||87.7%||99.8%||79.9%|
|- Insider holdings (%)||0.6%||0.0%||0.5%||1.7%||11.4%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Monday, May 20th, 2019|
|Day range||$63.59 - $64.53|
|Average true range||$1.61|
|50d mov avg||$68.66|
|100d mov avg||$66.26|
|200d mov avg||$67.99|
Emerson Electric performancePerformance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared Emerson Electric against ABB, AMTEK, CommScope, Danaher, General Electric, Honeywell International, International Business Machines, Microsoft and Roper Technologies in the following table:
Emerson Electric competitorsOne check before investing in any stock is to have a look a list of its competitors, in this case for Emerson Electric. We selected 9 companies as Emerson Electric competitors as they are in the same industry or have similar market objectives.
- ABB (ABB)
- AMTEK (AME)
- CommScope (COMM)
- Danaher (DHR)
- General Electric (GE)
- Honeywell International (HON)
- International Business Machines (IBM)
- Microsoft (MSFT)
- Roper Technologies (ROP)
Latest EMR stock news
- InvestorPlaceEmerson Electric Earnings: EMR Stock Dips on Revenue Miss, GuidanceMay 7, 2019
- Seeking AlphaEmerson Electric: Looking Very Strong FinanciallyMarch 4, 2019
- Seeking AlphaHere's The Price At Which I'll Start Buying Emerson ElectricDecember 21, 2018
- InvestorPlace3 Big Stock Charts for Thursday: Unum Group, Emerson Electric and American Electric PowerDecember 6, 2018
- Seeking AlphaBuy Emerson Electric Now And Cash In LaterNovember 16, 2018