Rockwell Automation (ROK) Stock Sinks As Market Gains: Here's Why
In the latest market close, Rockwell Automation (ROK) reached $310.62, with a -0.19% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.04%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.03%.
Coming into today, shares of the industrial equipment and software maker had gained 15.03% in the past month. In that same time, the Industrial Products sector gained 10.92%, while the S&P 500 gained 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of Rockwell Automation in its upcoming earnings disclosure. 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.82 per share and a revenue of $9.26 billion, representing changes of +5.78% and +2.28%, respectively, from the prior 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. Rockwell Automation is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Rockwell Automation is currently being traded at a Forward P/E ratio of 24.28. This expresses a discount compared to the average Forward P/E of 29.65 of its industry.
Investors should also note that ROK has a PEG ratio of 2.38 right now. 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 6.77 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 87, putting it in the top 35% 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.
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
