Rockwell Automation is Yahoo Finance Plus’ investment idea of the day
Yahoo Finance’s Jared Blikre reports details on Yahoo Finance’s Investment idea of the day.
Video Transcript
ALEXIS CHRISTOFOROUS: All right, and also before you go, Jared, the YF Plus Investment Idea of the Day, bullish initiation here on Rockwell Automation. Strong technicals and a strong balance sheet-- that makes for a nice recipe.
JARED BLIKRE: Yes, it does. And we're going to go to Argus Research for some of their notes here. Let me dial up a chart first so we can see the price action of Rockwell Automation. That's up 2% today. Over the last year, you can see the stock's up about 28%. And here we have the notes from Argus Research. And their long-term target is $330.
And they are just launching coverage with this buy rating, saying that Rockwell is a global leader in industrial automation, digital transformation services. The company's earnings are recovering from their pandemic lows. And we forecast solid double digit growth over the next several quarters. Rockwell has a clean balance sheet and high quality earnings focused on shareholder returns through both dividends and stock buybacks.
The shares are not cheap, but the technical pattern is bullish. And Rockwell shares have a long track of market and sector outperformance. 12-month target price is $330. Now we can see they fell off a bit with a lot of other industrial stocks in the month of September, but still maintaining that longer term uptrend. Alexis.
ALEXIS CHRISTOFOROUS: All right, Jared Blikre, thanks for the rundown. Appreciate it.
