Copyright Barchart
Saint Louis, Missouri-based Emerson Electric Co. (EMR) is a global technology and engineering company providing innovative solutions for customers in industrial, commercial, and residential markets. With a market cap of $78.6 billion, Emerson operates through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement segments. The stock has lagged behind the broader market in 2025, but significantly outperformed over the past year. EMR has surged 12.6% in 2025 and soared 28% over the past year, compared to the S&P 500 Index’s ($SPX) 16.3% gains on a YTD basis and 17.7% returns over the past year. Narrowing the focus, EMR has also lagged behind the Industrial Select Sector SPDR Fund’s (XLI) 17.7% gains in 2025 and outperformed XLI’s 14.5% returns over the past year. Emerson Electric’s stock prices dropped 4.7% following the release of its mixed Q3 results on Aug. 6. The drop can primarily be attributed to Emerson’s net sales of $4.6 billion missing the Street’s expectations by 60 bps. However, the sales figure was up almost 4% year-over-year, and the company’s overall performance remained resilient. The quarter was marked with strong profitability and cash flows despite the chaotic macro environment. Emerson’s adjusted EPS increased 6.3% year-over-year to $1.52, surpassing the consensus estimates by 66 bps. Further, the company generated solid free cash flows of $970 million during the quarter. For the full fiscal 2025, which ended in September, analysts expect EMR to deliver an adjusted EPS of $6, up 9.3% year-over-year. Further, the company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters. Among the 24 analysts covering the EMR stock, the consensus rating is a “Moderate Buy.” That’s based on 15 “Strong Buys,” one “Moderate Buy,” seven “Holds,” and one “Moderate Sell.” This configuration is slightly less optimistic than a month ago, when 16 analysts gave “Strong Buy” recommendations. On Oct. 15, JP Morgan (JPM) analyst Stephen Tusa maintained a “Neutral” rating on EMR and raised the price target from $135 to $151. EMR’s mean price target of $151.04 suggests an 8.2% upside potential. Meanwhile, the street-high target of $172 represents a notable 23.2% premium to current price levels.
