Emerson Electric (EMR – Analyst Report) recently missed the Zacks Consensus Estimate by $0.04 for a 4.76% negative earnings surprise. As a result, the stock fell about 5% in the session following the release. EMR is a Zacks Rank #5 (Strong Sell) and is the Bear of the Day.
EMR missed the Zacks Consensus Estimate of $0.84 by $0.04 for a 4.76% negative earnings surprise in the most recent quarter.
Emerson is engaged principally in the worldwide design, manufacture and sale of a broad range of electrical, electromechanical and electronic products and systems. The divisions of the company are organized into the following business segments based on the nature of the products and services provided: Process Control; Industrial Automation; Electronics and Telecommunications; Heating, Ventilating and Air Conditioning; and Appliance and Tools.
Usually when a stock is the Bear of the Day, the earnings history is filled with misses. This is not the case for EMR, as there are four beats in the last seven reports. The flipside of that is that there are three misses in that same time period.
The Zacks Consensus Estimate has been falling over the last few months. The FY16 estimate stood at $3.10 in May, but slipped to $3.08 in June and lost another penny in July. Following the recent miss the number now stands at $2.94.
Next year has also saw a big move lower in estimates with the 2017 Zacks Consensus Estimate moving from $3.34 in May to the current level of $3.15.
Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color coded lines represents analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving higher.
More Stocks to Sell. Now.
Beyond our Bear Stock of the Day, today’s list of 220 Zacks Rank #5 Strong Sells demand even more urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. Many appear to be sound investments but, since 1988, such stocks have actually performed more than 11X worse than the S&P 500.
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