Things still aren’t great for Emerson Electric (EMR), but better days are definitely in sight, and management’s efforts to diversify and reposition the automation business are already starting to pay off. A change in the top, bringing in only Emerson’s fourth-ever CEO, may sound like a risk, but the new CEO is a company veteran with a good track record at the Automation Solutions business.
These shares have done pretty well since my last update, helped by a very healthy sentiment around the economic recovery and the impact that will have on Emerson’s longer-cycle automation markets. While the shares don’t look particularly cheap in what I believe is a relatively expensive industrial sector (relative to the S&P 500 at similar points in the cycle), they could still have some appeal if you feel you have to own something in the space and/or aren’t as worried about overall valuation levels.
If you'd like to read more, follow this link:
Emerson Benefiting From A Quicker Recovery In Longer-Cycle Markets
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