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 April 4, 2025 was $94.57 and was lower than the bottom border of the primary price channel by $20.59 (17.88%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 61.69% per annum.
- EMR price at the close of April 4, 2025 was lower than the bottom border of the secondary price channel by $9.80 (9.39%).
- 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 = 3.6939
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(Y716)
= Exp(a + b × X716 + 2 × s)
= Exp(a + b × 1,038 + 2 × s)
= Exp(3.6939 + 0.0006 × 1,038 + 2 × 0.0574)
= Exp(4.4729)
= $87.61
Bottom border of price channel:
Exp(Y716)
= Exp(a + b × X716 – 2 × s)
= Exp(a + b × 1,038 – 2 × s)
= Exp(3.6939 + 0.0006 × 1,038 – 2 × 0.0574)
= Exp(4.2434)
= $69.64
February 28, 2025 calculations
Top border of price channel:
Exp(Y1,231)
= Exp(a + b × X1,231 + 2 × s)
= Exp(a + b × 1,789 + 2 × s)
= Exp(3.6939 + 0.0006 × 1,789 + 2 × 0.0574)
= Exp(4.9534)
= $141.66
Bottom border of price channel:
Exp(Y1,231)
= Exp(a + b × X1,231 – 2 × s)
= Exp(a + b × 1,789 – 2 × s)
= Exp(3.6939 + 0.0006 × 1,789 – 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 April 4, 2025 was $94.57 and was lower than the bottom border of the primary price channel by $20.59 (17.88%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: January 21, 2025
End date: April 2, 2025
a = 9.4800
b = -0.0026
s = 0.0189
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0026) – 1
= -61.69%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0189) – 1
= 7.87%
January 21, 2025 calculations
Top border of price channel:
Exp(Y1,204)
= Exp(a + b × X1,204 + 2 × s)
= Exp(a + b × 1,751 + 2 × s)
= Exp(9.4800 + -0.0026 × 1,751 + 2 × 0.0189)
= Exp(4.9156)
= $136.40
Bottom border of price channel:
Exp(Y1,204)
= Exp(a + b × X1,204 – 2 × s)
= Exp(a + b × 1,751 – 2 × s)
= Exp(9.4800 + -0.0026 × 1,751 – 2 × 0.0189)
= Exp(4.8398)
= $126.44
April 2, 2025 calculations
Top border of price channel:
Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,822 + 2 × s)
= Exp(9.4800 + -0.0026 × 1,822 + 2 × 0.0189)
= Exp(4.7290)
= $113.18
Bottom border of price channel:
Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,822 – 2 × s)
= Exp(9.4800 + -0.0026 × 1,822 – 2 × 0.0189)
= Exp(4.6532)
= $104.92
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 61.69% per annum.
- EMR price at the close of April 4, 2025 was lower than the bottom border of the secondary price channel by $9.80 (9.39%).