Sometimes it takes a little time before investors reconsider a company following restructuring. At least, that’s how it looks at Emerson Electric (EMR -1.76%). Management’s restructuring in recent years has created an automation company that deserves a valuation close to, if not more than, its U.S. peer Rockwell Automation (ROK -1.31%). For that reason, I think Emerson will outperform Rockwell Automation next year. Here’s the lowdown.
Automation and industrial software
There’s no doubt that automation is an attractive market to be in right now, which is why Emerson Electric’s management has focused the company on it. Demand for automation is driven by its long-term cost-saving properties, allowing companies to reshore manufacturing from low-labor-cost countries. That’s a key consideration as many companies faced significant supply chain difficulties in recent years as lockdowns shut…
