Is Emerson Electric Due to Light Up?

MKM Partners published a research note in Barron’s this morning which takes a look at Emerson Electric (NYSE:EMR).  They believe that the company’s fair value is around $47, a slight premium to its recent trade of $44.07.  They note that Emerson derives more than a third of its revenues from emerging markets, which could spell trouble for the stock, if a global slowdown is imminent.  Their valuation of $47 per share assumed a price-to-forward earnings ratio of 13.5.

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Following is some information about Emerson’s stock price performance, as compared to its competitors:

  • Emerson Electric (NYSE:EMR): The shares recently traded at $44.07 and they have traded in a 52-week range of $41.36 to $62.24.  The company’s market capitalization is $31.19 billion.  About the company: Emerson Electric Co. manufactures and markets electrical, electromechanical, and electronic products and systems. The Company produces a variety of products, including process control, industrial automation, electronics, appliance components, and electric motors. Emerson sells its products around the world.
  • AMETEK, Inc. (NYSE:AME): The shares recently traded at $34.23 and they have traded in a 52-week range of $31.45 to $47.  The company’s market capitalization is $5.53 billion.  About the company: AMETEK, Inc. is a global manufacturer of electronic instruments and electromechanical devices. The Company manufactures advanced instruments for process, aerospace, power and industrial markets and is a supplier of electrical interconnects, specialty metals, technical motors and systems, and floor care and specialty motors.
  • Danaher Corporation (NYSE:DHR): The shares recently traded at $42.76 and they have traded in a 52-week range of $39.53 to $56.09.  The company’s market capitalization is $29.31 billion.  About the company: Danaher Corporation designs, manufactures, and markets professional instrumentation, medical technologies, industrial technologies, and tools and components.
  • General Electric (NYSE:GE): The shares recently traded at $15.45 and they have traded in a 52-week range of $14.72 to $21.65.  The company’s market capitalization is $163.78 billion.  About the company: General Electric Company is a diversified technology, media and financial services company. The Company offers products and services ranging from aircraft engines, power generation, and water processing technology to medical imaging, business and consumer financing, media content and industrial products. General Electric conducts operations globally.
  • Honeywell (NYSE:HON): The shares recently traded at $44.27 and they have traded in a 52-week range of $41.50 to $62.28.  The company’s market capitalization is $34.64 billion.  About the company: Honeywell International Inc. is a diversified technology and manufacturing company with operations around the world. The Company provides aerospace products and services, control technologies, automotive products, and power generation systems. Honeywell also provides specialty chemicals, fibers, plastics, and electronic and advanced materials.

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