Tuesday, February 4, 2014

Emerson Electric (EMR)

Emerson announced quarterly earnings today, here is a summary:


Nothing negative here, but the stock is down today.  Here is a snapshot via FastGRAPHs:


A bit overpriced today, but has dropped from $70 recently, and I trimmed the holding back last full, so the IRA has a full position in EMR at present.  If the stock starts rising again in the coming months, I will likely sell additional shares and redeploy into holdings with a better valuation.  Here is a look at PE over time, a good indicator of over/under valuation:


As this graphic shows, a PE at or above 20 tends to be dangerous and likely to correct.

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