Is Emerson Electric Stock a Buy?
There's a lot to like about Emerson Electric (NYSE: EMR). After all, it's pivoting toward the attractive markets of automation and industrial software, as its European peers Siemens and ABB are also doing. In addition, management is making a concerted effort to move the company away from upstream oil and gas revenue. Again, something the market might like, but is it all enough to justify buying the stock? Here's the lowdown.
Rightly or wrongly, Emerson Electric was always considered an industrial stock with heavy exposure to energy spending. Given that much of energy industry capital spending is led by oil and gas prices, that meant keeping an eye on energy prices was a must for Emerson Electric shareholders.
However, CEO Lal Karsanbhai intends to focus the company on broad-based automation. It's a move he's likely comfortable making, given he was formerly the executive president of Emerson's automation solutions segment until taking over from David Farr in early 2021.
Source Fool.com
