Saint Louis, Missouri-based Emerson Electric Co. (EMR) is a technology and software company that provides various solutions. With a market cap of $72.8 billion, the company offers control systems, sensors, and valves, as well as electrical infrastructure and tools for industrial, commercial, and consumer markets worldwide.
Shares of this automation giant have outperformed the broader market over the past year. EMR has gained 35.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 21.8%. In 2025, EMR stock is up 3%, surpassing the SPX’s 2.7% rise on a YTD basis.
Zooming in further, EMR’s outperformance looks more pronounced compared to the Gabelli Automation ETF (GAST). The exchange-traded fund has gained about 15.3% over the past year. However, the ETF’s 3.7% gains on a YTD basis outshine the stock’s returns over the same time frame.
Emerson's remaining 43% acquisition of Aspen Technology, Inc. (AZPN) for $7.2 billion positions the company as a leader in industrial automation and software, enhancing its ability to deliver integrated hardware and software solutions. The deal aligns with Emerson's growth strategy, focusing on software-defined control and expanding into high-growth markets. The deal is expected to unlock $110 million in synergies and drive revenue growth, margin expansion, and shareholder value. Investors have responded positively to the acquisition, reflecting confidence in the combined entity's potential for success.
Today, on Feb. 5, EMR reported its Q1 results. Its adjusted EPS of $1.38 topped Wall Street expectations of $1.28. The company’s revenue was $4.18 billion, falling short of Wall Street forecasts of $4.21 billion. The company expects full-year adjusted EPS to be between $5.85 and $6.05.
For the current fiscal year, ending in September, analysts expect EMR’s EPS to grow 7.7% to $5.91 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering EMR stock, the consensus is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” five “Holds,” and one “Moderate Sell.”
This configuration is more bullish than a month ago, with 15 analysts suggesting a “Strong Buy.”
On Jan. 28, Daiwa initiated an “Outperform” rating on EMR with a $147 price target, implying a potential upside of 15.1% from current levels.
The mean price target of $139.96 represents a 9.6% premium to EMR’s current price levels. The Street-high price target of $160 suggests an upside potential of 25.3%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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