16 Most Undervalued Stocks to Buy Now

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9) Emerson Electric Co. (NYSE:EMR)

Forward P/E as of August 22: 17.54x

Number of Hedge Fund Holders: 51

Expected EPS Growth this Year: 23.4%

Emerson Electric Co. (NYSE:EMR) is a multi-industrial conglomerate that operates under 2 business platforms: automation solutions and commercial and residential solutions.

The company has a clear focus on streamlining its portfolio and strengthening its position as a global leader in automation. As a result, it has finalized an agreement to exit the Copeland business entirely. In addition, Emerson Electric Co. (NYSE:EMR) has maintained its focus on higher growth and higher margin automation portfolio.

Emerson Electric Co. (NYSE:EMR) has further strengthened its competitive edge as a result of strategic acquisitions and divestitures. The acquisition of NI together with the divestiture of non-core businesses, like the Climate Technologies segment, has placed the company as a leader in global automation. The acquisition of NI should open new growth avenues in automated test and measurement systems. This is the market with increased relevance in the era of the Internet of Things (IoT) and smart manufacturing.

For FY 2024, the company expects net sales growth of ~15% and underlying sales growth of ~6% on a YoY basis. The demand in process and hybrid markets, led by a constructive capex cycle, should continue to meet its expectations. Emerson Electric Co. (NYSE:EMR)’s operating leverage performance exhibits the benefits of its highly differentiated technology.

Emerson Electric Co. (NYSE:EMR) was a part of 51 hedge fund portfolios at the end of Q2 2024, according to Insider Monkey’s database. Loop Capital upped its price objective on the shares of Emerson Electric Co. (NYSE:EMR) from $130.00 to $135.00, giving it a “Buy” rating on 10th May.

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