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Stockchase Opinions

Jim Cramer - Mad MoneyEmerson ElectricEMRBUYJul 10, 2023

They bought a company that screwed up their business, but is now past that and is now fine.

$89.43

Stock price when the opinion was issued

$151.10

As of Jun 18, 2026. Market Open.

machinery
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HOLD

It reports next week. Happy that it topped $100. But a lot of industrials are lagging because of fears over an economic slowdown. This remains a core holding for him.

BUY
It got better today by selling one of its businesses, garbage disposals, to Whirlpool. Though EMR shares declined today, it will be good long term.
BUY
Has new managers. A well-diversified industrial. He wants to know what their China exposure is. They report Tuesday and he expects good things.
BUY
A past pick from summer 2020 when we started turning the corner on the pandemic It got a huge boost with vaccine news. They reported a great quarter last November and benefitted from the Democrats winning the Georgia Senate run-offs. A strong Chinese economy is another tailwind, because EMR has a lot of exposure there. Today, EMR made a new high. This has more room to run. A new CEO may break this company up, so he's excited.
BUY
The uptrend from 2016 to 2018 broke late last year, then has seen a head and shoulders bottom. It's a safe bet from here--should return to old highs, but doesn't know if it will rise even higher.
PAST TOP PICK
(A Top Pick Jan 28/19, Up 9%) It's starting to rise since he picked it, but it will reach his $70 target. He continues to hold it.
TOP PICK
He likes current levels, because history proves it holds here. Short-term, it's a winner. Also, good volume levels. (Analysts’ price target is $73.09)
WATCH
A quality industrial and is on her watch list. General uncertainty, trade wars and their exposure to oil has held her back from buying. She owns other industrials, but all have come down in valuation. Wait to see how the trade war plays out before stepping into this sector.
BUY ON WEAKNESS

Well-run. Maybe buy it during this pullback and she is certainly watching it. The U.S. has picked up oil demand, so Emerson's orders have grown.

WAIT

Owned it a few years ago but sold it. They are seeing good growth. A very well managed industrial company. She would probably not buy it here. They had a strong quarter and upped their guidance. She would wait for weakness.

BUY

He likes it and holds it here. Since June this cyclical wave came in and cheaper stocks benefited from a growth economy and did well. You want to focus on cheaper stocks that are more industrial and this stock looks good. They are poised to benefit from the ‘Buy America’ trend Trump is trying to instigate.

BUY

It is in the same category as GE-N, but not as interesting. It saw a recent peak in 2014. You want to own this stock at a time like this. Own it inexpensively and into a growth economy.

COMMENT

This is below the 50, 100 and 200 day moving averages, which themselves are falling, so the trend looks pretty negative from a technical perspective. Trading at 15X forward earnings with probably a 5%-6% long-term growth rate, putting it at a 3X PEG ratio. Too rich for him.

PAST TOP PICK

(Top Pick Sep 9/14, Down 26.18%) Some of their key end markets are 15% energy. They are seeing weakening demand. Emerging markets are 37% of their revenues. 12% China. The market is selling down these names. It is a well managed 125 year old company.