Emerson Unveils ComfortGuard Monitoring Service - Analyst Blog

A segment of Emerson Electric Co. EMR, Climate technologies, has launched a revolutionary monitoring service called ComfortGuard for the management of heating and cooling equipment. Being the first of its kind, the product is expected to solve one of the most common problems of American households. The monitoring packages will be available for $9.99 a month. The company has already launched the service in St. Louis.

According to a recent report by the U.S. Department of Energy, it has been observed that more than half of the domestic heating and cooling equipment is in need of repair which is also quite an expensive affair.

Therefore, with the launch of ComfortGuard, Emerson intends to resolve such household issues by providing the homeowners with the required insight and guidance needed to take charge of their heating and cooling equipment. The system will also monitor equipment performance and provide early caution so that minor problems can be dealt with at home. The owners will also be able to consult Emerson experts for recommendations and knowledge on maintenance and repair.   

ComfortGuard has 10 built-in high-tech sensors that will collect and convey data over a Wi-Fi connection every time heating and cooling systems are operated. Therefore, with every usage, a 32-point inspection is conducted which includes a scan for efficiency changes, filter degradation and component problems.

To add to the advantages, the homeowners are continuously notified about efficiency and filter status, monthly System Insight Reports and repair verifications through email alerts. This apart, the owners also have access to a fully responsive web and mobile portal, making system status, live data, equipment details, and filter size easily available.

Emerson's Climate technologies reported a 5.4% year-over-year increase in revenues in the second quarter of fiscal 2014. The improvement was driven by strength in global refrigeration markets and transportation. Underlying sales grew about 6%, as currency translation impacted the top line by less than 1%, with the U.S. witnessing sales growth of 2%, Asia 11% and Europe 3%.The U.S. air conditioning business is improving gradually, with mid-single-digit growth in residential markets and low-single-digit growth in the commercial business. Strong demand in China drove the upside in Asia, led by strong refrigeration, solutions and temperature sensors businesses. Also, market conditions continue to improve in Europe.

Emerson currently has a Zacks Rank #3 (Hold). However, some better-ranked stocks in the sector worth considering at the moment include Pernix Group Inc. (PRXG), Willdan Group Inc. WLDN and Enersys Inc. ENS. Pernix and Willdan sport a Zacks Rank #1 (Strong Buy) while Enersys has a Zacks Rank #2 (Buy).

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