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If You Invested $1000 in Rockwell Automation 10 Years Ago, This Is How Much You'd Have Now

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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Rockwell Automation (ROK - Free Report) ten years ago? It may not have been easy to hold on to ROK for all that time, but if you did, how much would your investment be worth today?

Rockwell Automation's Business In-Depth

With that in mind, let's take a look at Rockwell Automation's main business drivers.

Based in Milwaukee, WI, Rockwell Automation provides industrial automation and information solutions worldwide. The company has a wide network spanning more than 100 countries. The United States generates around 50% of the company’s total sales. Outside the United States, the company’s primary markets are China, Canada, Mexico, Italy, the U.K., Germany, and Australia.

The company operates manufacturing facilities in the United States and multiple other countries. Manufacturing space occupied approximately 2.8 million square feet, of which 38% is in North America. Its brands include Rockwell Automation, Allen-Bradley and Rockwell Software.

Effective first-quarter fiscal 2021, Rockwell Automation started reporting results based on three operating segments: Intelligent Devices, Software & Control, and Lifecycle Services. This change simplifies its structure around essential offerings, leverages its sharpened industry focus, and recognizes the growing importance of software in delivering value to customers.

Major markets served by the company consist of discrete end markets (Automotive, Semiconductor, and General Industries), which contributed around 25% of the company’s first-quarter fiscal 2022 sales. Hybrid end markets including Food & Beverage, Life Sciences and Household and Personal Care, among others contributed around 45% to the company’s sales in first-quarter fiscal 2021, while process end markets such as Oil & Gas, Metals, Chemicals, Pulp & Paper, to name a few, generated 30% of the company’s sales in first-quarter fiscal 2021.

Intelligent Devices (48% of revenues in fisrt-quarter fiscal 2022), segment includes drives, motion, safety, sensing, industrial components, and configured-to-order products.

Software & Control (28% of revenues in first-quarter fiscal 2021), includes control and visualization software and hardware, information software, and network and security infrastructure.

Lifecycle Services (24% of revenues in first-quarter fiscal 2021) includes consulting, professional services and solutions, connected services, and maintenance services, and the Sensia joint venture.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Rockwell Automation a decade ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in August 2012 would be worth $3,571.47, or a 257.15% gain, as of August 11, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.

The S&P 500 rose 199.48% and the price of gold increased 6.11% over the same time frame in comparison.

Analysts are anticipating more upside for ROK.

Rockwell Automation’s third-quarter fiscal 2022 earnings and sales beat the Zacks Consensus Estimates and increased year over year. Its top line is bearing the brunt of supply chain challenges and cost inflation. Component shortages are affecting the company’s shipments of hardware and software products, solutions and services. Improved material flow from key suppliers over the next couple of quarters will improve component shipments in the next few quarters. Price increase actions to mitigate the impacts of inflationary pressures will improve margin in fiscal 2022. Huge capital investments across many end markets coupled with higher automation and digital transformation will continue to support solid order levels. Adjusted EPS for fiscal 2022 is expected to be $9.30-$9.70, representing year-over-year growth of 1% at the mid-point.

The stock is up 28.12% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2022. The consensus estimate has moved up as well.

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