EMR stock: buy or sell?

EMR stock price: $63.90 -1.42% At close on May 20th, 2019

Updated on:
May 20th, 2019

3

Emerson Electric shares slightly fell -1.42% to $63.90 today.

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.

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 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.
Is EMR a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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
2019-1-14CitigroupSellNeutral

EMR stock analysis

Daily outlook

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%).

EMR stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $79.00

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. 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:
EMR stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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)$70.00$79.0013.0%
Moving in a range from $81.00 and $75.00, the price forecast for Emerson Electric stock is $79.00. In average, analysts' outlook on EMR price target is positive, increasing the prediction by a 13.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

For 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.
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 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%.

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 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.
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 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:

EMRABBAMECOMMDHR
Market cap$39.3 B$40.4 B$19.4 B$3.5 B$93.3 B
Total shares614.6 M2,130.0 M227.8 M193.5 M715.9 M
Float shares610.8 M1,780.0 M224.5 M169.3 M635.6 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 selling0.0%0.0%0.0%0.0%0.0%

EMR summary

Monday, May 20th, 2019
Open$64.43
Close$63.90
Day range$63.59 - $64.53
Previous close$64.82
Session gain-1.42%
Average true range$1.61
50d mov avg$68.66
100d mov avg$66.26
200d mov avg$67.99
Daily patternlt02a
Weekly pattern lt02a

Emerson Electric performance

Performance 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:
Stock3m6m12m
EMREmerson Electric-6.08%-1.46%-9.30%
ABB -0.32%-1.91%-18.68%
AMEAMTEK7.42%19.24%14.22%
COMMCommScope-23.59%3.29%-38.56%
DHRDanaher14.97%27.60%28.34%
GEGeneral Electric3.20%30.04%-29.03%
HONHoneywell Interna...10.06%18.32%18.65%
IBMInternational Bus...-1.53%13.10%-2.31%
MSFTMicrosoft14.16%23.44%30.41%
ROPRoper Technologie...11.48%24.20%27.18%

Emerson Electric competitors

One 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.

Latest EMR stock news