Rockwell Automation (ROK) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Rockwell Automation (ROK) closed at $302.97 in the latest trading session, marking a -1.01% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.15% for the day. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.09%.
Heading into today, shares of the industrial equipment and software maker had gained 9.39% over the past month, outpacing the Industrial Products sector's gain of 5.41% and the S&P 500's gain of 3.5% in that time.
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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.07 billion, up 4.57% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.82 per share and a revenue of $9.26 billion, signifying shifts of +5.78% and +2.28%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rockwell Automation. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. As of now, Rockwell Automation holds a Zacks Rank of #3 (Hold).
In the context of valuation, Rockwell Automation is at present trading with a Forward P/E ratio of 23.88. This indicates a discount in contrast to its industry's Forward P/E of 29.08.
One should further note that ROK currently holds a PEG ratio of 2.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Industrial Automation and Robotics was holding an average PEG ratio of 6.63 at yesterday's closing price.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning 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.
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Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
