Emerson Electric Company (EMR)
Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri. The Fortune 500 company manufactures products and provides engineering services for a wide range of industrial, commercial, and consumer markets.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 26.31% per annum.
- EMR price at the close of March 5, 2025 was $115.84 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 55.32% per annum.
- EMR price at the close of March 5, 2025 was lower than the bottom border of the secondary price channel by $0.57 (0.49%).
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of EMR price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: February 8, 2023
End date: February 28, 2025
a = 3.6741
b = 0.0006
s = 0.0574
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 26.31%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0574) – 1
= 25.80%
February 8, 2023 calculations
Top border of price channel:
Exp(Y737)
= Exp(a + b × X737 + 2 × s)
= Exp(a + b × 1,069 + 2 × s)
= Exp(3.6741 + 0.0006 × 1,069 + 2 × 0.0574)
= Exp(4.4729)
= $87.61
Bottom border of price channel:
Exp(Y737)
= Exp(a + b × X737 – 2 × s)
= Exp(a + b × 1,069 – 2 × s)
= Exp(3.6741 + 0.0006 × 1,069 – 2 × 0.0574)
= Exp(4.2434)
= $69.64
February 28, 2025 calculations
Top border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 + 2 × s)
= Exp(a + b × 1,820 + 2 × s)
= Exp(3.6741 + 0.0006 × 1,820 + 2 × 0.0574)
= Exp(4.9534)
= $141.66
Bottom border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 – 2 × s)
= Exp(a + b × 1,820 – 2 × s)
= Exp(3.6741 + 0.0006 × 1,820 – 2 × 0.0574)
= Exp(4.7239)
= $112.61
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 26.31% per annum.
- EMR price at the close of March 5, 2025 was $115.84 and was inside the primary price channel.
Secondary Trend
Start date: January 21, 2025
End date: March 3, 2025
a = 8.8070
b = -0.0022
s = 0.0108
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0022) – 1
= -55.32%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0108) – 1
= 4.43%
January 21, 2025 calculations
Top border of price channel:
Exp(Y1,225)
= Exp(a + b × X1,225 + 2 × s)
= Exp(a + b × 1,782 + 2 × s)
= Exp(8.8070 + -0.0022 × 1,782 + 2 × 0.0108)
= Exp(4.8953)
= $133.66
Bottom border of price channel:
Exp(Y1,225)
= Exp(a + b × X1,225 – 2 × s)
= Exp(a + b × 1,782 – 2 × s)
= Exp(8.8070 + -0.0022 × 1,782 – 2 × 0.0108)
= Exp(4.8520)
= $127.99
March 3, 2025 calculations
Top border of price channel:
Exp(Y1,253)
= Exp(a + b × X1,253 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(8.8070 + -0.0022 × 1,823 + 2 × 0.0108)
= Exp(4.8048)
= $122.10
Bottom border of price channel:
Exp(Y1,253)
= Exp(a + b × X1,253 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(8.8070 + -0.0022 × 1,823 – 2 × 0.0108)
= Exp(4.7615)
= $116.92
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 55.32% per annum.
- EMR price at the close of March 5, 2025 was lower than the bottom border of the secondary price channel by $0.57 (0.49%).