Industrial stocks certainly have their ups and downs as the economy goes through its cycles, but proven names like Danaher (NYSE:DHR), Illinois Tool Works (NYSE:ITW) and Emerson (NYSE:EMR) don't often trade at attractive multiples. With investors worried about Emerson's industrial automation and network power businesses, skeptical of its ability to recoup sales lost to a natural disaster, and generally bothered by any company with heavy exposure to Europe and/or China, now may be the time to fight the tide and consider these shares.
A Bad Quarter Was Expected, but This Was a Little Worse Still
Emerson warned the Street that this was not going to be a good quarter, and results were still a little shy of even those lowered expectations. Revenue fell 4% on an organic basis, as both network power and climate saw 10% declines in reported sales. Tools revenue was up slightly, but this is a tiny business. Industrial automation was a modest 2%, while process management was down a reported 1%.
Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/Emerson-Is-Better-Than-It-Looks--EMR-ABB-ROK-HON-SI-UTX-TYC0210.aspx
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