Is Emerson Electric (EMR) Still Undervalued After Its Recent Outperformance?

Emerson Electric (EMR) has quietly outperformed the broader industrial space this year, with the stock up about 11% year to date and roughly 5% over the past year, despite some recent choppiness.

See our latest analysis for Emerson Electric.

That steady climb to a recent share price of $135.25, backed by a roughly mid single digit 1 year total shareholder return and a strong double digit 3 year total shareholder return, suggests momentum is cooling slightly. At the same time, the longer term trend still points to investors rewarding Emerson’s profitability and growth profile.

If Emerson’s trajectory has you rethinking the industrial space, this could be a good moment to scan comparable names across aerospace and defense stocks for fresh ideas.

With earnings still growing at double-digit rates, a nearly 40 percent estimated intrinsic discount and additional upside relative to Wall Street targets, is Emerson Electric quietly undervalued right now, or is the market already pricing in years of future growth?

Most Popular Narrative Narrative: 10.3% Undervalued

Compared with the last close at $135.25, the most followed narrative sees Emerson Electric’s fair value meaningfully higher, framing the stock as a discounted automation leader.

The accelerating adoption of digital automation and artificial intelligence solutions in global industrial markets is fueling strong demand for Emerson's advanced software platforms and AI-enabled products, such as Ovation 4.0 and Nigel AI adviser, which is resulting in robust order growth and positions the company for sustained revenue expansion.

Read the complete narrative.

Curious how steady, mid single digit growth assumptions can still justify a premium profit multiple for an old line industrial name, usually reserved for software heavyweights? Want to see which margin and earnings upgrades turn that narrative into a double digit upside case that challenges the market’s more cautious view on this stock? Dive into the full breakdown behind that fair value call and decide whether these projections go too far, or not far enough.

Result: Fair Value of $150.84 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering exposure to tariffs, FX volatility and uneven demand in Europe and China could pressure margins and challenge the bullish automation narrative.

Find out about the key risks to this Emerson Electric narrative.

Build Your Own Emerson Electric Narrative

If you see the story differently or want to stress test the assumptions yourself, you can build a personalized view in just a few minutes, Do it your way.

A great starting point for your Emerson Electric research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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