Rockwell Automation (ROK) Registers a Bigger Fall Than the Market: Important Facts to Note
Rockwell Automation (ROK) closed the most recent trading day at $295.38, moving -1.01% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.56%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.59%.
The the stock of industrial equipment and software maker has fallen by 3.9% in the past month, lagging the Industrial Products sector's loss of 0.85% and the S&P 500's gain of 1.2%.
Analysts and investors alike will be keeping a close eye on the performance of Rockwell Automation in its upcoming earnings disclosure. On that day, Rockwell Automation is projected to report earnings of $2.61 per share, which would represent year-over-year growth of 6.1%. Simultaneously, our latest consensus estimate expects the revenue to be $2.07 billion, showing a 4.54% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $12.82 per share and a revenue of $9.27 billion, demonstrating changes of +5.78% and +2.36%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Rockwell Automation. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Rockwell Automation is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Rockwell Automation is currently exchanging hands at a Forward P/E ratio of 23.27. This represents a discount compared to its industry's average Forward P/E of 29.63.
Meanwhile, ROK's PEG ratio is currently 2.68. 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 average PEG ratio for the Industrial Automation and Robotics industry stood at 7.07 at the close of the market yesterday.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
