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Rockwell Automation (ROK) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, Rockwell Automation (ROK - Free Report) closed at $291.78, marking a +1.2% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.06%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 1.2%.

The industrial equipment and software maker's shares have seen an increase of 1.09% over the last month, surpassing the Industrial Products sector's loss of 2.18% and the S&P 500's loss of 3%.

The upcoming earnings release of Rockwell Automation will be of great interest to investors. The company's upcoming EPS is projected at $3.48, signifying a 14.47% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.43 billion, up 14.51% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Rockwell Automation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. As of now, Rockwell Automation holds a Zacks Rank of #3 (Hold).

In the context of valuation, Rockwell Automation is at present trading with a Forward P/E ratio of 21.76. This signifies a discount in comparison to the average Forward P/E of 26.8 for its industry.

It's also important to note that ROK currently trades at a PEG ratio of 1.83. 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. The average PEG ratio for the Industrial Automation and Robotics industry stood at 5.99 at the close of the market yesterday.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 110, this industry ranks in the top 44% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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