Emerson Electric Co. (NYSE: EMR) shares traded mostly even in value Tuesday Dec 13 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Analysts at Buckingham Research upgraded shares of Emerson Electric Co. (NYSE: EMR) from Underperform to Neutral today. With a rating of Neutral on the stock, Emerson Electric Co. has a 52-week high of $58.28. The one-year price target of $49.75 is lower than the opening price of $57.28, that has caused a fair amount of other analysts to issue statements on the stock recently. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Shares of Emerson Electric Co. (NYSE: EMR) opened at $57.28 on Tuesday and has traded in a range between, $57.06 and $57.63, and last traded at $57.09.
Emerson Electric Co. (NYSE: EMR) now has a market cap of 36.70B.
Emerson Electric Co. (NYSE: EMR) Average Daily Trading Volume
374,587 shares traded hands yesterday, below the norm, out of a total float 638,014,000. Momentum traders often use swings in trading volume to determine heavy volume aggregation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Emerson Electric Co. (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.
With that in mind, Emerson Electric Co. (NYSE: EMR) now has a 50-day MA of $53.85 and 200-day MA of $53.17. It has traded in a 52-week range between $41.25 – 58.28 and today’s last price is 2.04%% lower than the 52 week high of $58.28.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% over 3 consecutive years.
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