Rockwell Automation (ROK) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Rockwell Automation (ROK) ended the recent trading session at $303.86, demonstrating a -0.82% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.8% for the day. On the other hand, the Dow registered a loss of 0.76%, and the technology-centric Nasdaq decreased by 1.18%.
The industrial equipment and software maker's shares have seen an increase of 11.41% over the last month, surpassing the Industrial Products sector's gain of 6.76% and the S&P 500's gain of 3.4%.
The investment community will be closely monitoring the performance of Rockwell Automation in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.61, marking a 6.1% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.07 billion, reflecting a 4.57% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.82 per share and revenue of $9.26 billion, which would represent changes of +5.78% and +2.28%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Rockwell Automation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% lower. Rockwell Automation is currently a Zacks Rank #3 (Hold).
In the context of valuation, Rockwell Automation is at present trading with a Forward P/E ratio of 23.91. This indicates a discount in contrast to its industry's Forward P/E of 29.1.
Meanwhile, ROK's PEG ratio is currently 2.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Industrial Automation and Robotics industry had an average PEG ratio of 6.64.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 41% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
