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Rockwell Automation (ROK) Stock Sinks As Market Gains: What You Should Know

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Rockwell Automation (ROK - Free Report) closed at $293.89 in the latest trading session, marking a -1% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.14%.

Coming into today, shares of the industrial equipment and software maker had gained 0.23% in the past month. In that same time, the Industrial Products sector lost 2.27%, while the S&P 500 lost 0.73%.

Wall Street will be looking for positivity from Rockwell Automation as it approaches its next earnings report date. In that report, analysts expect Rockwell Automation to post earnings of $3.49 per share. This would mark year-over-year growth of 14.8%. Our most recent consensus estimate is calling for quarterly revenue of $2.43 billion, up 14.29% from the year-ago period.

ROK's full-year Zacks Consensus Estimates are calling for earnings of $11.94 per share and revenue of $8.93 billion. These results would represent year-over-year changes of +25.82% and +15.01%, respectively.

Any recent changes to analyst estimates for Rockwell Automation should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.17% higher within the past month. Rockwell Automation is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Rockwell Automation's current valuation metrics, including its Forward P/E ratio of 24.85. Its industry sports an average Forward P/E of 32.68, so we one might conclude that Rockwell Automation is trading at a discount comparatively.

We can also see that ROK currently has a PEG ratio of 2. 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. ROK's industry had an average PEG ratio of 7.45 as of yesterday's close.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

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