EMR stock: buy or sell?

EMR stock price: $45.58 -6.60% At close on March 27th, 2020

Updated on:
March 27th, 2020

2

Emerson Electric collapsed a spooky -6.60% and closed at $45.58. On Wednesday EMR skyrocketed an extraordinary 6.95%.

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. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Emerson Electric stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean EMR will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Emerson Electric stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for EMR stock for the last month.

EMR stock analysis

Daily outlook

Shares of Emerson Electric collapsed a spooky -6.60% and closed at $45.58.

Emerson Electric collapsed a spooky -6.60% and closed at $45.58. Since price and SMA200d lines crossed down on Feb/25, EMR fell $-23.61 per share (-34.12%). Since SMA100d and SMA200d crossed up on December, EMR price slid a -37.57%. On January, EMR hit a new all time high, pushing higher than on January tops. Check different trading setups that use ATHs as triggers.

EMR stock chart (daily)

Weekly outlook

After sliding for 4 weeks, this week Emerson Electric rose a very good 3.38%, closing at $45.58. Last week EMR plummed a hair-raising -14.15% in just one week. This week broke a streak of 4 declining weeks.

Emerson Electric slid under the support line what triggered further losses. Not so far away is the last all-time high Emerson Electric marked by mid January, but since then it dropped a 41.46%. Since late February, when EMR stock price broke down the 40-weeks moving avarage line, it slid $-26.51 per share (-36.77%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support. Since late November 2019 when SMA20w and SMA40w crossed up, EMR price slipped $-27.59 per share (-37.71%).

EMR stock chart (weekly)

EMR stock price history

EMR stock historical price chart

EMR stock reached all-time highs on January with a price of $77.86.

EMR stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we have not detected any price forecast for Emerson Electric stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last May, when Emerson Electric published its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will update 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 rocketed an astounding 14.05% to $17,408.00 million USD from $15,264.00 marked in 2017. When comparing 2018 vs 2017, on the other hand, profit margin (that is, the net income divided by revenues) stepped up a 2.71% to 12.66%.

To have an updated picture of the financial situation of Emerson Electric, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Emerson Electric TTM sales up to were $13,491.00 and earnings were $1,794.00 M dollars. When comparing this TTM figures with the last reported annuality, we can esteem Emerson Electric business evolution since September 2018: Annual revenues up to , compared to lastest yearly report, plunged a scary -22.50%. Regarding profit margin, Emerson Electric remained constant 0.64% to 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 reported million in revenues for 2019-Q1, a -100.00% less compared to previous quarter. Reported quarter earnings marked million with a profit margin of . Profit margin remained steady a 0.00% compared to previous quarter when profit margin was 11.21%. When comparing turnover to same quarter last year, Emerson Electric sales marked a bloodcurdling loss 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 invest in shares of a stock, it's worth to have a look its ownership structure.

Emerson Electric shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.62% of all shares.

In case of Emerson Electric stock, 74.88% 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:

EMR
Market cap$27.8 B
Total shares610.9 M
Float shares607.5 M
  - Institutional holdings (%)74.9%
  - Insider holdings (%)0.6%
Shares in short selling0.0%

EMR summary

Friday, March 27th, 2020
Open$46.18
Close$45.58
Day range$45.10 - $47.04
Previous close$48.80
Session gain-6.60%
Average true range$5.53
50d mov avg$64.14
100d mov avg$69.35
200d mov avg$66.25
Daily pattern
Weekly pattern lt06c

Emerson Electric performance

To better understand Emerson Electric performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare Emerson Electric to :
Stock3m6m12m
EMREmerson Electric-40.03%-30.42%-31.43%

Emerson Electric competitors

Unfortunately, we could not find any public company that could be defined as Emerson Electric competitor. This doesn't mean Emerson Electric does not have any competitor in the market, it's just we could not detected it.

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