It's honestly weird getting things right when it feels like we're the only outlet talking about certain trends. Earlier this year, we initiated coverage of a solid utility play: Emerson Electric ($EMR).
We jumped on Emerson because they were centered on two important long-term narratives we were tracking:
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Reshoring
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A surge in 'green' investments
A lot of other analysts thought the green mania wouldn't last, and everyone is so focused on the Chinese economy collapsing that they've barely noticed Western businesses clamoring to bring their manufacturing closer to home.
Other, less centralized utility plays got clobbered this year on rising costs and more complex supply chains.
But investors never faltered in their confidence in Emerson Electric, because unlike most other slow-burning energy plays, EMR has massively diversified their funnel to support cash-rich green energy projects (among others). By zeroing in on hydrogen production and lithium mining, EMR has kept its backlog flat and its funnel expanding when comparable energy companies are honestly contracting.
More importantly, EMR pulled all that off while keeping costs under control.
So this is a great time to ride the momentum and add to our position as Emerson Electric takes charge of all the really important trends powering our economy for the next 5 years.
You don't get more future-focused than this company, but let's try to limit this report to only the facts you need 👇