5-Star Stocks Poised to Pop: Emerson Electric

Based on the aggregated intelligence of 120,000 investors participating in Motley Fool CAPS, the Fool's free investing community, electrical products maker Emerson Electric (NYSE: EMR  ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Emerson's business and see what CAPS investors are saying about the stock right now.

Emerson facts

Headquarters (Founded)

St. Louis, Missouri (1890)

Market Cap

$23.34 billion

Industry

Electrical components and equipment

TTM Revenue

$24.58 billion

Management

CEO David Farr (since 2000)

CFO Walter Galvin (since 1993)

Return on Equity (average last three years)

24.2%

Dividend Yield

4.0%

Competitors

Honeywell (NYSE: HON  )

ABB (NYSE: ABB  )

CAPS members bullish on EMR also bullish on

General Electric (NYSE: GE  )

Vale (NYSE: RIO  )

CAPS members bearish on EMR also bearish on

Garmin (Nasdaq: GRMN  ) ,

Sears Holdings (Nasdaq: SHLD  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 921 of the 940 members who have rated Emerson -- some 98% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include mikethejoker and one of the highest-ranked members in all of CAPS, TDRH.

In August, mikethejoker had this to say about Emerson: "Rock solid. Very well run, diversified, international manufacturer that will grow somewhat faster than market. It may get bumpy if global economy tumbles, but it will bounce back."

TDRH agreed in a comment from last month, elaborating on Emerson's attractive position as one of the industry's big dogs:

Process Control industry typically lags the rest of the economy both in the decline and the boom. This market still has too many players, right now all the boats are floating, but as the market slows I would anticipate mergers and aquisitions of smaller players. If [Emerson] plays its cards right it could break through.

What do you think about Emerson, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Garmin is a Motley Fool Global Gains and a Stock Advisor selection. Sears Holdings is a choice of Inside Value. The Fool's disclosure policy always gets a perfect score.


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