The Case for and Against Emerson Electric Co. (EMR)

Emerson Electric Co. (EMR) is an interesting player in the Industrial Goods space, with a focus on Industrial Electrical Equipment. The stock has been active on the tape, currently trading at $68.81, up from yesterday’s close by 0.57%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Emerson Electric Co. (EMR) currently trades with a market capitalization of $43.54 Billion. That value represents a market adjusting for revenues that have been growing by 18.66 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $1.65 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.72 on a per share basis this quarter. Perhaps, that suggests something about why 1.04% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Emerson Electric Co. recorded a 52-week high of $74.45. It is now trading 5.64% off that level. The stock is trading $69.74 its 50-day moving average by 0.92999999999999%. The stock carved out a 52-week low down at $56.77.

In recent action, Emerson Electric Co. (EMR) has made a move of -4.93% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.41, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.02% with $630.83 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of EMR.

Previous articleDrilling Down Into Best Buy Co., Inc. (BBY)
Next articleJust the Facts on Radian Group Inc. (RDN)