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Emerson Electric, the company of EMR stock, is a hugely diversified company providing engineering and manufacturing tools for commercial use. They also cater to the consumer market, offering a varied range of products that include air-conditioners, refrigerators, welders and motors. EMR stocks can be particularly interesting for investors because of its operational capacity and international presence. They also provide different opportunities than, say, investing in real estate. Since the company qualifies as a big player in the utilities sector, investors can benefit from the performance of the industry overall.
Utility Sector Offers Intelligent Investment
The utility sector can be an intelligent investment opportunity. The utility stocks play well even at times of economic stress because of the products that they offer. Furthermore, utility stocks provide services and products that are necessary to individuals, families and organizations. Even in the face of an economic downturn, EMR stock can provide stability for those who invest with online stock brokers.
Buffet’s Recommendation
When it comes to buying stock, there is no greater endorsement than Warren Buffet. That is good news for EMR stock as of late. One of Warren Buffets favorite industries, the industrial sector, is poised to pick up once again. Indications show that EMR stock is one of the few industrial stocks that is slightly under-performing. However, according to chief market technician Jonathan Krinsky, this makes it one of the best opportunities to buy stock in the industrials sector. If you value investment advice from some of the best investors ever, this is certainly a benefit to purchasing EMR shares.
Competitive Advantage
Moreover, EMR stock has a competitive advantage that investors can profit from, unlike less-reliable pink sheet stocks. By offering productivity measurement and engineering tools, Emerson Electric builds a long term relationship with clients. These services provided by Emerson Electric are company specific, making it costly for clients to switch to a competitor. Investing in EMR stocks can be a strong investment decision, considering its long-term stability and visibility.
Product Diversity
Emerson Electric is favored by investors because of the diversity in its product line-up. The company operates in five sectors: process management, network power, business industry automation, climate technology and residential solutions. This diversification is certainly one of the core reasons for Emerson Electric’s consistent performance. Their diversified products protect the company from any industrial collapse. EMR stock could be a safe investment because of its broad industrial exposure.
Furthermore, EMR stocks are likely to benefit from the company growth. Emerson Electric has been estimated to allocate an infrastructure build-out of $500 billion by 2025, profiting from their huge customer base. They have witnessed a compound annual growth rate at 3.96% from 2005-2014, increasing the revenue to $24.537B from $17.305B within that period. The company is expected to spin off its Network Power business in a tax free distribution to shareholders. This move would be an added benefit for investors holding shares in EMR stocks.
EMR Share Price
EMR stocks are being traded at a considerably attractive rate, at the moment. The company enjoys a market capitalization of $32.35B, which had earned a gross profit of $11B by the end of last year. Presently the P/E ratio of the company is at 12.09 and the 52-week high and low estimated at $65.94 and $42.21 respectively. The dividend yield is marked at 3.93% with the stock price hovering around the $48-$50 mark. EMR stocks can be a bargain, considering the price and the long-term benefits.
New EMR Stock Developments
In what may seem like bad news, EMR shares were being traded swiftly due to their recent move to acquire Pentair (PNR). However, this actually indicates great things for EMR themselves. EMR paid over $3 billion dollars to procure the valves business. Clearly, such a large corporation would not have made such a purchase if they could not afford it. This also aligns with plans that the company hinted at at their most recent shareholders meeting. The risk/reward of this movie is balanced, according to the company and certified risk analysts for business. And we have to agree. This power move allows the firm to grow and develop, just as they had started planning in 2015. This also provides a great time for those on the fence to finally take the plunge and buy some shares of EMR. The EMR share price has not changed. However, it presents a great opportunity to buy now before it grows even more thanks to the company’s newest acquisition. This move presents an exciting time for the company, so keep watching to see how the acquisition turns out for the company.
Smart investors are always on the look out to profit from log term investment returns. Some analysts consider the EMR stock to be greatly undervalued at the moment, which is why it could be good decision to invest in the stocks. EMR stocks are certainly high yielding and qualify as blue chip stocks. A couple similar companies in a separate sector are Apple stock or Intuit stock. Therefore, it would intelligent to invest in some EMR stocks with some opportunistic market timing.
