10 Best Industrial Machinery Stocks to Buy Now

3. Emerson Electric Co. (NYSE:EMR)

Number of Hedge Fund Holders: 51             

Since its founding in 1890 as the first electric fan maker in North America, Emerson Electric Co. (NYSE:EMR) has grown to become a major force in industrial automation by acquiring well-known brands. Emerson makes and sells a variety of automation gear, including switches, gauges, and valves, as well as power tools and software. The company is divided into seven business groups. To become a pure-play industrial automation company, Emerson recently sold off its consumer and climate technology divisions. For manufacturers, factory automation is an attractive long-term solution since it lowers accident rates and increases uptime and productivity.

Furthermore, Emerson Electric Co. (NYSE:EMR) operates in North America, Europe, China, and other regions. This enables it to protect its business performance against an economic downturn in one location, such as China’s industrial slowdown, which has lingered since the coronavirus outbreak.

Emerson Electric Co. (NYSE:EMR) had a solid fiscal fourth quarter of 2024, with revenue up 13% YoY due to strong underlying sales growth. The gross margin for fiscal 2024 also increased dramatically, reaching 50% for the first time. Additionally, the business has successfully integrated Test & Measurement, achieving $100 million in synergies in the first year.

On November 6, 2024, Ken Newman, a KeyBanc analyst, kept an Overweight rating on Emerson Electric Co. (NYSE:EMR) shares and raised its price target from $125 to $140. Following the company’s Q4 earnings and announcement of portfolio transformation activities, the firm observes that shares outperformed. The rise in FY24 was driven by process and hybrid businesses, according to management, while discrete end markets continued to show challenges. However, discrete orders improved in Q4, and KeyBanc was pleased by management’s remarks that these end markets had likely bottomed.

Lee Munder’s Lee Munder Capital Group was the company’s largest stakeholder at the end of Q2 2024, as per Insider Monkey’s database. It owns 111,654 shares worth $12.21 million as of Q2.