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Rockwell Automation (ROK) Soars 3.4%: Is Further Upside Left in the Stock?

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Rockwell Automation (ROK - Free Report) shares ended the last trading session 3.4% higher at $273.46. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5.6% loss over the past four weeks.

ROK's price appreciation is primarily driven by the company’s decision to exit the Russian market over the Ukraine invasion. The company is suspending operations and sales in Russia and Belarus, with immediate effect. Its sales to Russia and Belarus accounts for less than 0.5% of total revenues.

This industrial equipment and software maker is expected to post quarterly earnings of $2.27 per share in its upcoming report, which represents a year-over-year change of -5.8%. Revenues are expected to be $1.94 billion, up 9.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Rockwell Automation, the consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ROK going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Rockwell Automation is part of the Zacks Industrial Automation and Robotics industry. iRobot (IRBT - Free Report) , another stock in the same industry, closed the last trading session 2.9% higher at $62.99. IRBT has returned -5.9% in the past month.

For iRobot, the consensus EPS estimate for the upcoming report has changed -521.6% over the past month to -$1. This represents a change of -343.9% from what the company reported a year ago. iRobot currently has a Zacks Rank of #4 (Sell).


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