Industrial equipment manufacturer Emerson Electric's (NYSE: EMR )
stock price is down more than 8% year to date, and investors must be
wondering when the company will join the broader market rally. By
management's own admission, sales growth has been lower than hoped for
this year. Moreover, there are a number of reasons the company could
continue to disappoint investors in the near term. Let's look at three of them.
An uncertain geopolitical situationIf there is one thing that has affected the company this year, it's geopolitical concerns. Essentially, sales have grown slower than orders as customers continue to display cautiousness on current spending due to global tensions. Unfortunately, there are no shortages of issues to worry about, including conflicts in the Middle East and Ukraine, the debt default situation in Argentina, and emerging market growth coming in lower than expected. Caution is not an uncommon situation in the industrial equipment sector right now.
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Emerson Electric needs more spending on energy infrastructure Source: Motley Fool Flickr.
An uncertain geopolitical situationIf there is one thing that has affected the company this year, it's geopolitical concerns. Essentially, sales have grown slower than orders as customers continue to display cautiousness on current spending due to global tensions. Unfortunately, there are no shortages of issues to worry about, including conflicts in the Middle East and Ukraine, the debt default situation in Argentina, and emerging market growth coming in lower than expected. Caution is not an uncommon situation in the industrial equipment sector right now.
READ THE FULL ARTICLE LINKED HERE
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