#2 - Emerson Electric (NYSE:EMR)
Emerson Electric Co. (NYSE: EMR) is another robotics stock that can help you capitalize on the demand for AI. The basic thesis for owning EMR stock comes from the company’s second-quarter earnings presentation.
A headline in that deck read, “AI Driven Investments in Data Centers Heralds a Step Change in the Growth of Power in the U.S.” To support that statement, Emerson noted that the annual electricity consumption of U.S. data centers (measured in terawatt-hours TWh) would increase at a CARG of 22% between now and 2032.
This growth is starting to show up in the company’s revenue and earnings, which are showing solid year-over-year growth. In the last two quarters, earnings are up 56% and 24%, respectively. Analysts forecast that growth will slow to around 8% over the next 12 months, possibly reflecting concerns of a slowing economy.
However, for many value-oriented investors, EMR stock represents a low-risk investment in the long-term growth in this sector. Not only does the stock trade at an attractive 6x earnings, but the company is a dividend king that has increased its dividend for 67 consecutive years.
About Emerson Electric
Emerson Electric Co, a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity.
Read More - Current Price
- $103.70
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 12 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $124.29 (19.9% Upside)
