Rockwell Automation (ROK) Stock Sinks As Market Gains: What You Should Know
Rockwell Automation (ROK) ended the recent trading session at $304.27, demonstrating a -0.45% swing from the preceding day's closing price. This change lagged the S&P 500's 0.29% gain on the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.43%.
The the stock of industrial equipment and software maker has fallen by 0.7% in the past month, leading the Industrial Products sector's loss of 0.87% and undershooting the S&P 500's gain of 2.08%.
The investment community will be closely monitoring the performance of Rockwell Automation in its forthcoming earnings report. The company is scheduled to release its earnings on January 31, 2024. The company's earnings per share (EPS) are projected to be $2.61, reflecting a 6.1% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.07 billion, up 4.54% from the year-ago period.
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 should also note any recent changes to analyst estimates for Rockwell Automation. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Currently, Rockwell Automation is carrying a Zacks Rank of #3 (Hold).
Investors should also note Rockwell Automation's current valuation metrics, including its Forward P/E ratio of 23.84. Its industry sports an average Forward P/E of 29.18, so one might conclude that Rockwell Automation is trading at a discount comparatively.
It's also important to note that ROK currently trades at a PEG ratio of 2.74. 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. As the market closed yesterday, the Industrial Automation and Robotics industry was having an average PEG ratio of 6.87.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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
