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Here's Why Rockwell Automation (ROK) Gained But Lagged the Market Today

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The most recent trading session ended with Rockwell Automation (ROK - Free Report) standing at $294.14, reflecting a +1.02% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 1.03%. Elsewhere, the Dow saw an upswing of 0.34%, while the tech-heavy Nasdaq appreciated by 1.51%.

The the stock of industrial equipment and software maker has risen by 8.24% in the past month, leading the Industrial Products sector's gain of 5.61% and the S&P 500's gain of 3.21%.

Market participants will be closely following the financial results of Rockwell Automation in its upcoming release. The company's earnings per share (EPS) are projected to be $2.23, reflecting a 25.91% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.11 billion, reflecting a 7.16% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.36 per share and a revenue of $9.17 billion, indicating changes of +1.98% and +1.27%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rockwell Automation. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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, there's been a 0.07% rise in the Zacks Consensus EPS estimate. Rockwell Automation currently has a Zacks Rank of #3 (Hold).

Investors should also note Rockwell Automation's current valuation metrics, including its Forward P/E ratio of 23.55. Its industry sports an average Forward P/E of 29.83, so one might conclude that Rockwell Automation is trading at a discount comparatively.

It's also important to note that ROK currently trades at a PEG ratio of 2.7. 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. Industrial Automation and Robotics stocks are, on average, holding a PEG ratio of 7.1 based on yesterday's closing prices.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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