Will You Be Comfortable Buying Emerson Electric Stock?
While history suggests price dips recover, there is risk – specific to downturn resilience. Consider the following data:
- Size: A $73 Bil company with $18 Bil in revenue currently trading at $129.03.
- Fundamentals: Last 12 month revenue growth of 4.8% and operating margin of 18.8%.
- Liquidity: Has Debt to Equity ratio of 0.21 and Cash to Assets ratio of 0.05
- Valuation: Currently trading at P/E multiple of 27.3 and P/EBIT multiple of 22.6
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 84% within a year. See EMR Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for EMR, see Buy or Sell EMR Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and EMR drops another 20-30% to $90.32 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.
Below is a deep dive into Emerson Electric (EMR) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
Below are the details, but before that, as a quick background: EMR provides technology and engineering products for industrial, commercial, and consumer markets, serving sectors like oil and gas, power generation, life sciences, food and beverage, and water supplies.
- What Could Light a Fire Under Netflix Stock
- 3 Forces That Could Shake Eli Lilly Stock
- Cash Machine Trading Cheap – Concentrix Stock Set to Run?
- Momentum Meets Value: Is Coeur Mining Stock Stock A Buy?
- Super Micro Computer Stock Pulls Back to Support – Smart Entry?
- Honeywell International Stock at Support Zone – Bargain or Trap?
2022 Inflation Shock
- EMR stock fell 30.9% from a high of $105.70 on 2 September 2021 to $73.06 on 27 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 14 February 2024
- Since then, the stock increased to a high of $149.63 on 27 July 2025 , and currently trades at $129.03
| EMR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -30.9% | -25.4% |
| Time to Full Recovery | 505 days | 464 days |
2020 Covid Pandemic
- EMR stock fell 51.1% from a high of $77.87 on 16 January 2020 to $38.08 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 November 2020
| EMR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -51.1% | -33.9% |
| Time to Full Recovery | 238 days | 148 days |
2018 Correction
- EMR stock fell 29.3% from a high of $78.52 on 3 October 2018 to $55.49 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 24 November 2020
| EMR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -29.3% | -19.8% |
| Time to Full Recovery | 701 days | 120 days |
2008 Global Financial Crisis
- EMR stock fell 57.3% from a high of $58.20 on 5 June 2008 to $24.87 on 9 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 December 2010
| EMR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -57.3% | -56.8% |
| Time to Full Recovery | 647 days | 1480 days |
Worried that EMR could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.