Saturday, October 11, 2014

Why Emerson Electric Could Rise

Having endured a difficult 2014 so far, industrial equipment manufacturer Emerson Electric Co. (NYSE: EMR  ) is hoping to close out its year on a stronger note. By management's own admission, growth hasn't been as strong as it had expected it to be, and the company is trending toward the bottom end of its forecast for 3%-5% underlying sales growth for the full year. With that said, there are three key catalysts that could drive the stock higher from here. It's time to look at them in more detail.

Emerson Electric Co. is primed for growth

Firstly, this article is part of a series of articles on the company, and readers can learn about what management wants you to know in this article. One of the factors highlighted in the linked article leads into the first upside catalyst for Emerson Electric. Simply put, the company finds itself in the unusual position whereby orders are growing faster than sales, creating a significant backlog. For example, the three-month average for orders came in with a 7% increase at the end of July, whereas underlying sales growth was only 3% in the third quarter ended in June.


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