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5-Star Stocks Poised to Pop: Emerson Electric

Based on the aggregated intelligence of 180,000-plus 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.

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 (1890)
Market Cap $35.6 billion
Industry Electrical components and equipment
Trailing-12-Month Revenue $23.52 billion
Management

Chairman/CEO David Farr 

President/COO Edward Monser

Return on Equity (Average, Past 3 Years) 22%
Cash/Debt $1.78 billion / $5.22 billion
Dividend Yield 3%
Competitors

ABB (NYSE: ABB  )  

General Electric (NYSE: GE  )  

Hitachi (NYSE: HIT  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,365 members who have rated Emerson believe the stock will outperform the S&P 500 going forward. These bulls include ethwc and Joulesh.

This past summer, ethwc listed several of Emerson's positives: "Solid line of products with international market. Good dividend. Company appears to have ethical board of directors."

Emerson even boasts a solid three-year average operating margin of 16.6%. That's higher than rival industrial gorillas ABB (13.1%), General Electric (9.4%), and Hitachi (2.8%).

CAPS member Joulesh expands on the outperform argument:

EMR is a great balance between value and growth. Nice share price to owner earnings ratio, great ROE, nice growth in earnings, low P/E and GREAT CEO. This is one to own for the long-term and load up on during the dips. It has gone down since I added it to my CAPS, I probably should have waited for a dip, but over the long-term it won't matter much.

What do you think about Emerson, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Emerson? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of ABB. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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DocumentId: 1572359, ~/Articles/ArticleHandler.aspx, 5/28/2012 3:22:14 AM

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Related Tickers

5/25/2012 4:00 PM
EMR $47.28 Down -0.42 -0.88%
Emerson Electric C… CAPS Rating: *****
HTHIY.PK $56.88 Down -0.43 -0.75%
Hitachi, Ltd. (ADR… CAPS Rating: **
GE $19.20 Down -0.05 -0.26%
General Electric C… CAPS Rating: ****
ABB $16.18 Down -0.22 -1.34%
ABB CAPS Rating: *****

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