EMR stock: buy or sell?

EMR stock price: $64.95 -0.34% At close on September 20th, 2019

Updated on:
September 20th, 2019

4

Shares of Emerson Electric ended yesterday at $64.95 and decreased a lame -0.34%.

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. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Emerson Electric stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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 collected 15 ratings published for EMR stock in the last month.

The general sentiment of these ratings is bullish for EMR stock, with 13 positive ratings.
Is EMR a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-4Barclaysn/aHold
2019-8-9Cowenn/aBuy
2019-8-8Morgan Stanleyn/aOverweight
2019-8-7Credit Suisse Groupn/aOutperform
2019-8-5Deutsche Bankn/aBuy
2019-8-13ArgusBuyHold
2019-7-9Citigroupn/aBuy
2019-7-30Citigroupn/aBuy
2019-6-5Credit Suisse Groupn/aOutperform
2019-4-8CitigroupNeutralBuy
2019-2-8Morgan Stanleyn/aBuy
2019-2-6Credit Suisse Groupn/aOutperform
2019-2-5Cowenn/aBuy
2019-1-30Cowenn/aBuy
2019-1-3Credit Suisse GroupNeutralOutperform

EMR stock analysis

Daily outlook

Emerson Electric ended yesterday at $64.95 and decreased a lame -0.34%.

Emerson Electric ended yesterday at $64.95 and decreased a lame -0.34%. For the last 11 days when EMR stock price broke up the SMA200d line, it gained $1.17 (1.83%). EMR shows a short term strength with several rising tops and rising bottoms. In the very short term, on Wednesday it marked a new bottom at $64.02 that should act a support if Emerson Electric starts a trading flat base in the range of $64.02 - $66.21 Trading the long side, we should wait to a new breakout over $66.21 to find the next buy point.

EMR stock chart (daily)

Weekly outlook

After boosting a superb 5.03% in a week last week, Emerson Electric closed this week at $64.95 and slightly fell a lame -0.92%. Late July EMR collapsed a frightening -8.11% in just one week.

Since last week when EMR stock price broke up the SMA40w line, it gained $2.70 (4.34%). Far behind is the all-time high Emerson Electric marked early October and since then the price is -15.98% below that top.

EMR stock chart (weekly)

EMR stock price history

EMR stock historical price chart

EMR stock reached all-time highs on October with a price of $77.30.

EMR stock price target is $75.50

How 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. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 13 price forecasts for Emerson Electric stock:
EMR stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-4BarclaysReiteratesn/a$65.00-
2019-8-9CowenReiteratesn/a$72.00-
2019-8-8Morgan StanleyLowers Target$84.00$76.00-9.5%
2019-8-7Credit Suisse GroupLowers Target$74.00$70.00-5.4%
2019-8-5Deutsche BankLowers Target$74.00$73.00-1.4%
2019-7-9CitigroupLowers Target$80.00$79.00-1.3%
2019-7-30CitigroupLowers Target$79.00$77.00-2.5%
2019-6-5Credit Suisse GroupReiterates$80.00$74.00-7.5%
2019-4-8CitigroupUpgradesn/a$81.00-
2019-2-8Morgan StanleySet Price Targetn/a$77.00-
2019-2-6Credit Suisse GroupReiterates$70.00$75.007.1%
2019-2-5CowenReiteratesn/a$81.00-
2019-1-30CowenReiteratesn/a$81.00-
(in average)$77.30$75.50-2.0%
The price target for Emerson Electric stock is $75.50, moving in a range between $81.00 and $65.00.

Financials and fundamental analysis

Earnings date and Earnings per Share

After posting its last earnings report on May, Emerson Electric depreciated an awful -5.91%. As soon as we get its actual EPS from the earnings report, we will update this review.
EMR earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a1.11n/a
2017-Q2-n/a0.65n/a
2017-Q32017-11-070.790.835.1%
2017-Q42018-02-060.550.585.5%
2018-Q12018-05-010.710.767.0%
2018-Q22018-08-070.860.882.3%
2018-Q32018-11-060.920.89-3.3%
2018-Q42019-02-050.660.7412.1%
2019-Q12019-05-070.84n/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Emerson Electric annual turnover skyrocketed an amazing 14.05% to $17,408.00 M USD from $15,264.00 marked in 2017. When comparing 2018 vs 2017, improving that, profit margin (that is, the net income divided by revenues) raised a 2.71% to 12.66%.

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 income $1,794.00 million USD. When comparing this TTM figures with the last reported annuality, we can review Emerson Electric business evolution since September 2018: Annual turnover up to , compared to lastest yearly report, plunged a chilling -22.50%. Nonetheless, profit margin (net income/revenues) remained steady at 12.66%.

EMR annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
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 M5.11%$1,518 M9.9%-7.16%
2018$17,408 M14.05%$2,203 M12.7%45.13%
TTM $13,491 M-22.50%$1,794 M13.3%-18.57%

Quarterly financial results

Emerson Electric posted M in revenues for 2019-Q1, a -100.00% decline compared to previous quarter. Reported quarter income marked M with a profit margin of . Profit margin remained stable a 0.00% compared to previous quarter when profit margin was 11.21%. When comparing revenues to same quarter last year, Emerson Electric sales marked a spooky correction and plummed a -100.00%. Looking back to recent quarterly results, Emerson Electric posted 2 positive quarters in a row.
EMR quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$3,570 M-$376 M10.5%-
2017-Q2$4,040 M13.17%$407 M10.1%8.24%
2017-Q3$4,435 M9.78%$504 M11.4%23.83%
2017-Q4$3,816 M-13.96%$392 M10.3%-22.22%
2018-Q1$4,248 M11.32%$482 M11.3%22.96%
2018-Q2$4,456 M4.90%$712 M16.0%47.72%
2018-Q3$4,888 M9.69%$617 M12.6%-13.34%
2018-Q4$4,147 M-15.16%$465 M11.2%-24.64%

Emerson Electric ownership

When you are planning to buy shares of a stock, it's always worth to overview its ownership structure.

Emerson Electric shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.64% of all shares.

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.

For a better context understanding, the next table shows ownership data compared to other related stocks:

EMRABBAMECOMMDHR
Market cap$40.0 B$42.7 B$20.5 B$2.3 B$105.0 B
Total shares615.1 M2,130.0 M228.4 M194.1 M717.4 M
Float shares610.8 M1,780.0 M224.9 M159.1 M636.3 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 selling0.0%0.0%0.0%0.0%0.0%

EMR summary

Friday, September 20th, 2019
Open$65.35
Close$64.95
Day range$64.51 - $65.74
Previous close$65.17
Session gain-0.34%
Average true range$1.27
50d mov avg$61.94
100d mov avg$63.03
200d mov avg$63.85
Daily patternlb03a
Weekly pattern lt03a

Emerson Electric performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Emerson Electric performance to ABB, AMTEK, CommScope, Danaher, General Electric, Honeywell International, International Business Machines, Microsoft and Roper Technologies:
Stock3m6m12m
EMREmerson Electric-0.18%-1.28%-14.16%
ABB 0.90%12.44%-14.08%
AMEAMTEK2.57%13.53%10.99%
COMMCommScope-24.86%-43.36%-60.58%
DHRDanaher1.96%13.15%36.18%
GEGeneral Electric-10.42%-5.92%-19.57%
HONHoneywell Interna...-2.92%9.13%7.19%
IBMInternational Bus...3.13%4.16%-1.67%
MSFTMicrosoft2.14%19.97%23.96%
ROPRoper Technologie...-1.55%9.33%18.06%

Emerson Electric competitors

We chose a few stocks to conform a list of Emerson Electric competitors to examine if you are interested in investing in EMR:

Latest EMR stock news