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Sector:IndustrialsAll sectors
Last updated3 minutes ago

EMR·Emerson Electric Co.

$152.82
+2.61 (+1.74%)
Market Closed (Overnight)$152.82+0.00 (+0.00%)
High
$153.61
Open
$150.17
Market Cap
83.76B
52W High
$168.00
Low
$149.59
P. Close
$152.82
P/E
32.52
52W Low
$121.20
Fwd P/E
21.09
DailyIQ Est.
$179.03
Inst. Ownership
2.5%
Short Interest
2.18%
Days to Cover
3.5
Technical Score (1D)
41
SELL
News Sentiment
71
BULLISH
Morgan Stanley’s latest upgrade—raising Emerson’s price target to $135 from $125 while keeping an underweight stance—signals modest optimism about the company’s automation and robotics segments, but the firm still views the current valuation as high. This adjustment, coupled with a broad buy consensus from other analysts citing strong fundamentals and a diversified industrial portfolio, suggests that traders should expect a steady, if not explosive, upside over the next 1–10 trading days. Emerson’s recent fiscal‑2026 outlook now projects adjusted EPS of $6.55 and operating cash flow near $4.1 billion, which will support its long‑standing dividend growth streak and a planned $2.2 billion return to shareholders, reinforcing the company’s cash‑rich profile. The company’s new long‑term measurement instrumentation deal with Equinor and a multi‑million dollar automation contract with BP add incremental revenue streams in the energy sector, bolstering its automation narrative and providing a potential catalyst for earnings growth. These contracts also expose Emerson to project‑timeline risk, so monitoring any delays or scope changes in Equinor’s or BP’s operations will be key. The combination of a higher earnings forecast, robust cash flow, and expanding energy contracts positions Emerson to potentially outpace its industrial peers, but the underweight rating and valuation concerns mean that price swings could still be limited. Watch for the upcoming earnings release to see how the new contracts translate into quarterly revenue and whether the company can accelerate its AI‑enabled robotics initiatives as management has highlighted. Finally, keep an eye on institutional activity—recent routine rebalancing by Jones Financial suggests no immediate shift in ownership sentiment, but any significant change in stake could signal broader confidence or concern.
Earnings Summary
Emerson Electric Co. is a global technology and software provider specializing in industrial automation and control solutions, operating across final control, measurement & analytical, and discrete automation segments, and serving a broad range of industries worldwide. In the industrials sector, Emerson’s focus on enhancing operational efficiency and safety positions it as a key player in specialty industrial machinery. Recent quarterly performance shows a steady upward trajectory: Q4 2024 EPS of $1.38 beat the $1.27748 estimate, while revenue reached $4.175B; Q1 2025 EPS rose to $1.48 versus a $1.4149 estimate with revenue of $4.432B; Q2 2025 EPS of $1.52 versus $1.50964 estimate and revenue of $4.553B; Q3 2025 EPS of $1.62 versus $1.61547 estimate and revenue of $4.855B; Q2 2026 EPS of $1.54 versus $1.5333 estimate and revenue of $4.562B; Q3 2026 EPS of $1.71 versus $1.6931 estimate and revenue of $4.873B. The company has consistently met or exceeded analyst expectations in six of the last six quarters, with revenue growth accelerating from $4.175B to $4.873B over the same period, indicating robust top‑line momentum. Historically, Emerson has maintained a YoY revenue growth rate above 5% in each of the past four years, while EPS growth has hovered around 10% annually; the company has rarely missed estimates, and its earnings have remained resilient even when macro‑economic headwinds pressured peers. Recent news highlights a multi‑million dollar contract with BP’s Shah Deniz compression project and a 13‑year agreement with Equinor for measurement instrumentation, both of which are expected to contribute incremental revenue in the coming quarters; the timing of these contracts will be reflected in the next earnings release. Forward‑looking watch points include monitoring how the BP and Equinor contracts are recognized in revenue, assessing whether operating cash flow aligns with the projected $4.1B to support the announced $2.2B shareholder return plan, and watching for any analyst price‑target revisions that could influence short‑term sentiment.

EPS

EstBeatMiss
$1.35$1.49$1.63$1.77$1.91Q1'25Q2'25Q3'25Q2'26Q3'26Q4'26
QtrEstActual+/−
Q4'26$1.85 - -
Q3'26$1.69$1.71+1.0%
Q2'26$1.53$1.54+0.4%
Q3'25$1.62$1.62+0.3%
Q2'25$1.51$1.52+0.7%
Q1'25$1.41$1.48+4.6%

Revenue

EstBeatMiss
$4.3B$4.6B$4.8B$5.0B$5.3BQ1'25Q2'25Q3'25Q2'26Q3'26Q4'26
QtrEstActual+/−
Q4'26$5.1B - -
Q3'26$4.9B$4.9B+0.5%
Q2'26$4.6B$4.6B-0.7%
Q3'25 - $4.9B -
Q2'25 - $4.6B -
Q1'25 - $4.4B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

EMR Stock Snapshot

HOLD41/100
$152.82+$0.00 (0.0%)
Market cap
83.76B
P/E ratio
32.5
Day range
$149.59 – $153.61
News sentiment
71/100 · Bullish
Analyst target
$171.81 (+12.4%)
Consensus
Buy · 35 analysts
52-week range+26.1% off low · -9.0% from high
$121.20$168.00
Price $152.82 DailyIQ Est. $179.03

Momentum has flattened on EMR, leaving the next move dependent on news rather than the chart. The stock is liquid enough that positioning changes get absorbed without distorting the trend.

Reverse DCF

What growth is priced into EMR?

RICH

At today's price, Emerson Electric Co. needs to grow free cash flow about 24.4% a year for the next 10 years to justify its valuation at a 9.94% cost of capital. Over its actual history it has compounded free cash flow at -3.3% a year, so the market is asking for 27.6 percentage points above its own delivered rate. On that basis EMR looks priced above what its own growth record supports.

Implied FCF growth
24.4%
Historical FCF CAGR
-3.3%
Growth gap
+27.6 pts
Verdict
RICH
Discount rate (WACC)
9.94%
Beta
1.22

Behaviour On Record

What EMR's own history says about today's numbers

Realized volatility (21d)
29.6% 79th pct
Below its peak
-8.5%
vs 200-day average
+5.5%
Up days (1y)
53%

Emerson Electric Co. is currently running 29.6% annualised volatility over the last 21 sessions. Measured against EMR's own 13 years of daily returns rather than a market-wide average, that is the 79th percentile — elevated for this stock, against a typical reading of 23.3%. The distinction matters because a number that looks calm for one stock is turbulent for another, and the absolute figure on its own tells you neither.

EMR is trading -8.5% below its running peak. Across 12 full years on file, its median worst-drawdown-in-a-year was -21.8%, and the deepest was -51.1% in 2020. The current pullback is therefore shallower than what this stock gives back in a typical year, which is context worth having before treating it as a dislocation.

Price sits +5.5% from its 200-day moving average. Against every other day in its history, that gap ranks at the 59th percentile — a somewhat wider gap than its own norm. Over the past year EMR closed higher on 53% of sessions, and it is currently 2 sessions into a rising streak.

On September specifically: over 13 years of records, EMR finished the month higher 6 of 13 times, with a median return of -0.2% and an average of +0.1%. Its strongest month historically has been November at +3.4% on average, its weakest March at -1.8%. Seasonality is a weak signal on its own — a decade is a small sample and regimes change — but it is a real distribution rather than a rule of thumb.

Overnight risk is measurable too: EMR has opened more than 2% away from the prior close in 119 of 3,268 sessions (3.6% of the time), with the largest gaps running +8.8% and -10.3%. For anyone holding through an event, that rate is a better guide to overnight exposure than the intraday range.

All figures computed from 3,269 daily closes between 2013-09-05 and 2026-09-03, split-adjusted, recomputed daily. Percentiles are against EMR's own 13-year history, not a peer group or index.

Sector Rotation

Is money rotating into or out of EMR's sector?

Emerson Electric Co. sits in the Industrials sector, currently ranked 11th of 11 GICS sectors by relative-strength rotation score (improving).

Sector rank
#11 of 11
Sector state
Improving
Sector rotation score
20

Options Market

What is the options market pricing for EMR?

CallsPuts

For Emerson Electric Co.'s nearest expiry (2026-09-11, 6 days out), open interest is call-heavy, a bullish tilt (put/call ratio of 0.06), with at-the-money implied volatility around 41.8%. The options market is pricing roughly a ±5.2% move by that expiry — a range of about $149.43–$165.79.

Put/call ratio (2026-09-11)
0.06
ATM implied volatility
41.8%
Total open interest
307
Expected move by 2026-09-11
±5.2% ($149.43–$165.79)

EMR Competitive Positioning

Emerson Electric Co. (EMR) is tracked alongside these names in Specialty Industrial Machinery on DailyIQ — ranked by market cap, with today's move alongside.

Held by These ETFs

EMR is a top holding in these ETFs tracked on DailyIQ — bar length shows portfolio weight.