Rockwell Automation (ROK) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Rockwell Automation (ROK) closed at $310.48, marking a +1.7% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.66%.
Shares of the industrial equipment and software maker witnessed a gain of 12.61% over the previous month, beating the performance of the Industrial Products sector with its gain of 7.67% and the S&P 500's gain of 5.16%.
Analysts and investors alike will be keeping a close eye on the performance of Rockwell Automation in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.61, reflecting a 6.1% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.07 billion, indicating a 4.57% growth compared to the corresponding quarter of the prior year.
ROK's full-year Zacks Consensus Estimates are calling for earnings of $12.82 per share and revenue of $9.26 billion. These results would represent year-over-year changes of +5.78% and +2.28%, respectively.
It is also important to note the recent changes to analyst estimates for Rockwell Automation. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% lower. At present, Rockwell Automation boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Rockwell Automation has a Forward P/E ratio of 23.82 right now. Its industry sports an average Forward P/E of 28.89, so one might conclude that Rockwell Automation is trading at a discount comparatively.
We can also see that ROK currently has a PEG ratio of 2.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Industrial Automation and Robotics stocks are, on average, holding a PEG ratio of 6.58 based on yesterday's closing prices.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ROK in the coming trading sessions, be sure to utilize Zacks.com.
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Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
