With a market cap of $74.2 billion, Saint Louis, Missouri-based Emerson Electric Co. (EMR) is a global technology and engineering leader serving industrial, commercial, and residential markets. Its Automation Solutions business enhances production, safety, and energy efficiency for process, hybrid, and discrete manufacturers, while the Commercial & Residential Solutions segment focuses on comfort, food safety, and sustainable infrastructure. 

Companies worth more than $10 billion are generally labeled as “large-cap” stocks and Emerson Electric fits this criterion perfectly. Emerson’s comprehensive offerings range from advanced control systems and intelligent instrumentation to asset optimization software and professional tools.

However, EMR saw a 3.5% decline from its 52-week high of $134.85 reached on Dec. 4. Shares of the engineering and automation solutions company have risen 27.6% over the past three months, outpacing the Industrial Select Sector SPDR Fund’s (XLI) 5.3% return over the same time frame. 

In the longer term, EMR stock is up 33.8% on a YTD basis, outperforming XLI’s 20.6% gain. Shares of EMR have climbed 41.2% over the past 52 weeks, compared to XLI’s 23% return over the same time frame.

EMR has been trading above its 50-day and 200-day moving average since late September.

Shares of Emerson Electric surged 7.2% on Nov. 5 due to its Q4 2024 earnings and revenue exceeding expectations, with adjusted EPS of $1.48 and revenue of $4.6 billion. The strong performance of the Intelligent Devices segment, which reported $3.3 billion in sales, further bolstered investor sentiment. Emerson’s fiscal 2025 guidance was another catalyst, projecting EPS of $5.85 - $6.05, well above the consensus estimate, along with a slight dividend increase. Lastly, the announcement to acquire the remaining shares of Aspen Technology at a 35% premium highlighted Emerson’s aggressive growth strategy in the software sector, fueling market optimism.

In addition, EMR has also outpaced its rival, AMETEK, Inc. (AME), which experienced a 13.6% increase on a YTD basis and 16% over the past 52 weeks. 

Due to EMR’s outperformance over the past year, analysts remain bullish about its prospects. The stock has a consensus rating of “Strong Buy” from 21 analysts' coverage, and as of writing, EMR is trading below the mean price target of $139.82.