Stockchase Opinions

Jim Cramer - Mad Money Emerson Electric EMR-N BUY Jan 19, 2021

A past pick from summer 2020 when we started turning the corner on the pandemic It got a huge boost with vaccine news. They reported a great quarter last November and benefitted from the Democrats winning the Georgia Senate run-offs. A strong Chinese economy is another tailwind, because EMR has a lot of exposure there. Today, EMR made a new high. This has more room to run. A new CEO may break this company up, so he's excited.
$83.430

Stock price when the opinion was issued

machinery
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

PAST TOP PICK
(A Top Pick Jan 28/19, Up 9%) It's starting to rise since he picked it, but it will reach his $70 target. He continues to hold it.
BUY
The uptrend from 2016 to 2018 broke late last year, then has seen a head and shoulders bottom. It's a safe bet from here--should return to old highs, but doesn't know if it will rise even higher.
BUY
Has new managers. A well-diversified industrial. He wants to know what their China exposure is. They report Tuesday and he expects good things.
BUY
It got better today by selling one of its businesses, garbage disposals, to Whirlpool. Though EMR shares declined today, it will be good long term.
BUY

They bought a company that screwed up their business, but is now past that and is now fine.

HOLD

It reports next week. Happy that it topped $100. But a lot of industrials are lagging because of fears over an economic slowdown. This remains a core holding for him.

BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EMR has a total return of 33% over the last year and forward price-to-earnings ratio is decent, however not low at 20.8x. EMR also pays a small yield of 1.84%. Revenue growth has been modest over the last few years, however, margins have expanded nicely and most recent earnings were very strong. The balance sheet also looks OK with plenty of cash despite highly leveraged. We think EMR is a good name and forecasts predict a strong 2024. It appears to be quite a stable business, generating high cash flows and returns capital to shareholders well through the dividend and buybacks.
Unlock Premium - Try 5i Free

BUY

Now, it's working. Didn't like the hostile takeover, but they've since fixed that. Are tied to data centres.

BUY

He sold after EMR launched a hostile takeover, but he missed out. His mistake.