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Rockwell Automation, Inc. (ROK - Free Report) has acquired industrial cybersecurity services provider company — Oylo — in a bid to boost its cybersecurity offerings. Based in Barcelona, Spain, Oylo offers a wide range of industrial control system (ICS) cybersecurity services and solutions, including turnkey implementations, assessments, managed services as well as incident response.
The latest buyout supports Rockwell Automation’s commitment to providing best-in-class cybersecurity services and solutions, which is one of the company’s fastest-growing businesses. Further, Oylo’s expertise in operational technology (OT) cybersecurity supplements Rockwell Automation’s know-how in information technology (IT) cybersecurity.
The acquisition will aid Rockwell Automation to further enhance its global delivery capability in the rapidly-emerging IT/OT cybersecurity market while expanding the cybersecurity offerings to the industrial market. Oylo will be part of Rockwell’s Lifecycle Services operating segment.
Rockwell Automation’s acquisition strategy continues to stoke growth. This January, the company acquired Avnet Data Security in an effort to expand its IT/OT cyber and network expertise globally. In April, the company completed the buyouts of ASEM, a leading provider of digital automation technologies as well as Kalypso, a privately-held U.S.-based software delivery and consulting firm specializing in the digital transformation of industrial companies with a strong client base in life sciences, consumer products and industrial high-tech.
Last October, the company acquired MESTECH Services, a global provider of Manufacturing Execution Systems/Manufacturing Operations Management, digital solutions consulting and systems integration services. The acquisition has boosted the company’s capabilities to profitably grow its Information Solutions and Connected Services globally and strengthen the ability to help customers execute digital transformation initiatives.
Moreover, Rockwell Automation will benefit from its focus on broadening the portfolio of hardware and software products, solutions and services. Further, significant investments to globalize manufacturing, product development and customer-facing resources will drive growth. The company is likely to witness above-market growth through a combination of share gains in core platforms, double-digit growth in Information Solutions and Connected Services segment, as well as contribution from acquisitions and inorganic investments.
The company has also raised the fiscal 2020 adjusted earnings per share guidance to the band of $7.40-$7.60 from its prior estimate of $6.90-$7.70. The guidance reflects gradual recovery of business with no increase in the coronavirus pandemic-induced facility closures and supply-chain disruptions. Moreover, the company has been taking preemptive actions to align its cost structure with the current uncertain environment. It is cutting down discretionary spending across the organization and introducing other temporary cost actions. These actions are expected to generate $150 million of savings in fiscal 2020. Apart from this, the company’s focus on productivity and initiatives to mitigate the impact of tariffs will likely fuel growth.
Price Performance
The company’s shares have appreciated 42.4% over the past year, outperforming the industry’s growth of 38.5%.
Zacks Rank & Stocks to Consider
Rockwell Automation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include Astec Industries, Inc. (ASTE - Free Report) , Berry Global Group, Inc. (BERY - Free Report) and Fortune Brands Home & Security, Inc. . While Astec sports a Zacks Rank #1 (Strong Buy), Berry and Fortune Brands carry a Zacks Rank of 2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Astec has an estimated earnings growth rate of 13.5% for 2020. The company’s shares have rallied 68.5% in a year’s time.
Berry has a projected earnings growth rate of 32.3% for fiscal 2020. Shares of the company have appreciated 21.8% over the past year.
Fortune Brands has an expected earnings growth rate of 6.9% for the current year. The stock has surged 55.6% in the past year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Rockwell Automation Buys Oylo, Expands Cybersecurity Offerings
Rockwell Automation, Inc. (ROK - Free Report) has acquired industrial cybersecurity services provider company — Oylo — in a bid to boost its cybersecurity offerings. Based in Barcelona, Spain, Oylo offers a wide range of industrial control system (ICS) cybersecurity services and solutions, including turnkey implementations, assessments, managed services as well as incident response.
The latest buyout supports Rockwell Automation’s commitment to providing best-in-class cybersecurity services and solutions, which is one of the company’s fastest-growing businesses. Further, Oylo’s expertise in operational technology (OT) cybersecurity supplements Rockwell Automation’s know-how in information technology (IT) cybersecurity.
The acquisition will aid Rockwell Automation to further enhance its global delivery capability in the rapidly-emerging IT/OT cybersecurity market while expanding the cybersecurity offerings to the industrial market. Oylo will be part of Rockwell’s Lifecycle Services operating segment.
Rockwell Automation’s acquisition strategy continues to stoke growth. This January, the company acquired Avnet Data Security in an effort to expand its IT/OT cyber and network expertise globally. In April, the company completed the buyouts of ASEM, a leading provider of digital automation technologies as well as Kalypso, a privately-held U.S.-based software delivery and consulting firm specializing in the digital transformation of industrial companies with a strong client base in life sciences, consumer products and industrial high-tech.
Last October, the company acquired MESTECH Services, a global provider of Manufacturing Execution Systems/Manufacturing Operations Management, digital solutions consulting and systems integration services. The acquisition has boosted the company’s capabilities to profitably grow its Information Solutions and Connected Services globally and strengthen the ability to help customers execute digital transformation initiatives.
Moreover, Rockwell Automation will benefit from its focus on broadening the portfolio of hardware and software products, solutions and services. Further, significant investments to globalize manufacturing, product development and customer-facing resources will drive growth. The company is likely to witness above-market growth through a combination of share gains in core platforms, double-digit growth in Information Solutions and Connected Services segment, as well as contribution from acquisitions and inorganic investments.
The company has also raised the fiscal 2020 adjusted earnings per share guidance to the band of $7.40-$7.60 from its prior estimate of $6.90-$7.70. The guidance reflects gradual recovery of business with no increase in the coronavirus pandemic-induced facility closures and supply-chain disruptions. Moreover, the company has been taking preemptive actions to align its cost structure with the current uncertain environment. It is cutting down discretionary spending across the organization and introducing other temporary cost actions. These actions are expected to generate $150 million of savings in fiscal 2020. Apart from this, the company’s focus on productivity and initiatives to mitigate the impact of tariffs will likely fuel growth.
Price Performance
The company’s shares have appreciated 42.4% over the past year, outperforming the industry’s growth of 38.5%.
Zacks Rank & Stocks to Consider
Rockwell Automation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include Astec Industries, Inc. (ASTE - Free Report) , Berry Global Group, Inc. (BERY - Free Report) and Fortune Brands Home & Security, Inc. . While Astec sports a Zacks Rank #1 (Strong Buy), Berry and Fortune Brands carry a Zacks Rank of 2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Astec has an estimated earnings growth rate of 13.5% for 2020. The company’s shares have rallied 68.5% in a year’s time.
Berry has a projected earnings growth rate of 32.3% for fiscal 2020. Shares of the company have appreciated 21.8% over the past year.
Fortune Brands has an expected earnings growth rate of 6.9% for the current year. The stock has surged 55.6% in the past year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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