EMR:NYSE
Emerson Electric Company
Data as of 2026-03-10 - not real-time
Latest Price
Risk Level: Medium
Executive Summary
Emerson Electric (EMR) is trading at $141.12, comfortably above its 200‑day SMA of $136.32 but below the 20‑day ($149.16) and 50‑day ($147.05) averages, indicating a short‑term pullback within a longer‑term uptrend. The RSI at 42 suggests neutral momentum, while the MACD histogram remains deeply negative, a bearish signal reinforced by decreasing volume and a 30‑day volatility of over 40%, pointing to heightened price swings. Fundamentals show a trailing P/E of 34.6 versus an industry average of 29.5, and a DCF fair value near $62.65, implying the stock is currently overvalued despite solid earnings growth (forward EPS of $7.18 versus $4.08 trailing) and a forward P/E of 19.6. The dividend yield of 1.6% is supported by a payout ratio just above 50% and healthy free cash flow, suggesting sustainability. Recent news highlights a Q1 earnings beat with 9% order growth, a strategic push into AI‑driven water automation, and a downgrade from Deutsche Bank to “Hold,” tempering enthusiasm. Overall, EMR balances strong long‑term growth catalysts against short‑term technical weakness and valuation pressure.
Trading Recommendations
Short Term
< 1 yearKey Factors
- Bearish MACD and price below short‑term SMAs
- Decreasing volume and elevated 30‑day volatility
- Recent downgrade to Hold by Deutsche Bank
Medium Term
1–3 yearsKey Factors
- Forward earnings growth and improving EPS outlook
- Support level near $134.65 offering downside cushion
- Sustained dividend with payout ratio under 60%
Long Term
> 3 yearsKey Factors
- Secular IoT and AI‑driven water automation tailwinds
- Robust cash generation despite high leverage
- Consistent dividend track record and industry leadership
Key Metrics & Analysis
Financial Health
Technical Analysis
Valuation
Risk Assessment
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This analysis may contain inaccuracies. Not financial advice. Always do your own research before making any investment decisions.