Emerson Electric Company (NYSE: EMR) shares rose in value in early trading today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at Bank of America Corporation upgraded shares of Emerson Electric Company (NYSE: EMR) from to Neutral today. With a rating of Neutral on the shares, Emerson Electric Company has a 52-week high of $58.28. The one-year price target of $52.05 is a decrease compared to the opening price of $56.80, resulting a fair amount of other analysts to comment on the company in recent days. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Yesterday Emerson Electric Company (NYSE: EMR) shares last traded at $56.69, an increase of $0.29 compared to the previous closing price. Opening at $56.80, they varied from $56.22 and $56.81 throughout the day.
Emerson Electric Company (NYSE: EMR) currently has a market cap of 36.44B.
Emerson Electric Company (NYSE: EMR) Average Daily Trading Volume
The stock’s average daily volume is 3,846,260 shares out of a total float 639,087,000 and some 264,947 shares crossed the trading desk yesterday, 5 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Emerson Electric Company (NYSE: EMR) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Emerson Electric Company (NYSE: EMR) have ranged from $41.25 – 58.28, and the stock now has a 50-day MA of $56.25 and 200-day MA of $53.65. Today’s last price is 2.73%% under the 52 week high of $58.28.
Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have grown their earnings at least 25% or more over a 3 year period.
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