10 Best Blue Chip Stocks to Buy for Your Retirement Portfolio

7. Emerson Electric Co. (NYSE:EMR)

Short Percentage of Float: 2.21%

On May 7, RBC Capital raised its price recommendation on Emerson Electric Co. (NYSE:EMR) to $169 from $161. It reiterated an Outperform rating following the company’s Q2 results. The firm said proactive cost management helped Emerson raise the low end of its FY26 EPS guidance, even while factoring in a one percentage point impact from continued disruption in the Middle East. The analyst also noted that the company lowered its organic sales growth guidance to 3% from 4%, according to a research note sent to investors.

During the fiscal Q2 2026 earnings call, President, CEO, and Director Surendralal Karsanbhai said Emerson delivered 5% growth in underlying orders during the quarter. He added that demand across end markets remained strong. Karsanbhai highlighted that Software & Systems orders rose 18% year over year, while Ovation orders increased 41%. He also said underlying sales growth came in at 0.5%, below expectations, because of a one-point impact tied to the Middle East conflict. Even so, the company reported an adjusted segment EBITDA margin of 27.6% and adjusted earnings per share of $1.54.The CEO added that the software annual contract value reached $1.64 billion by the end of the quarter.

Karsanbhai further stated that Emerson updated its full-year guidance to reflect the impact of the Middle East conflict. The company now expects sales growth of 4.5%, including 3% underlying growth. At the same time, Emerson raised the lower end and midpoint of its adjusted EPS outlook and now expects adjusted earnings between $6.45 and $6.55 per share.

Emerson Electric Co. (NYSE:EMR) is a global technology and software company that provides solutions across a wide range of end markets. The company operates through seven segments under two business groups: Intelligent Devices and Software and Control.