Rockwell Automation (ROK) Falls More Steeply Than Broader Market: What Investors Need to Know
Rockwell Automation (ROK) closed the most recent trading day at $279.50, moving -0.7% from the previous trading session. This change lagged the S&P 500's daily loss of 0.54%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 0.84%.
Shares of the industrial equipment and software maker witnessed a gain of 6.74% over the previous month, trailing the performance of the Industrial Products sector with its gain of 9.02% and the S&P 500's gain of 8.62%.
Analysts and investors alike will be keeping a close eye on the performance of Rockwell Automation in its upcoming earnings disclosure. In that report, analysts expect Rockwell Automation to post earnings of $2.61 per share. This would mark year-over-year growth of 6.1%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.07 billion, indicating a 4.57% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.83 per share and a revenue of $9.26 billion, signifying shifts of +5.86% and +2.28%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Rockwell Automation. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.77% fall in the Zacks Consensus EPS estimate. Rockwell Automation presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Rockwell Automation is currently being traded at a Forward P/E ratio of 21.93. This expresses a discount compared to the average Forward P/E of 27.61 of its industry.
Also, we should mention that ROK has a PEG ratio of 2.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Industrial Automation and Robotics industry currently had an average PEG ratio of 6.37 as of yesterday's close.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
