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Why Rockwell Automation (ROK) Dipped More Than Broader Market Today
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The latest trading session saw Rockwell Automation (ROK - Free Report) ending at $286.38, denoting a -1.28% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq gained 0.17%.
The industrial equipment and software maker's shares have seen an increase of 4.12% over the last month, not keeping up with the Industrial Products sector's gain of 8.96% and the S&P 500's gain of 5.34%.
Analysts and investors alike will be keeping a close eye on the performance of Rockwell Automation in its upcoming earnings disclosure. In that report, analysts expect Rockwell Automation to post earnings of $2.23 per share. This would mark a year-over-year decline of 25.91%. 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.
For the full year, the Zacks Consensus Estimates project earnings of $12.29 per share and a revenue of $9.17 billion, demonstrating changes of +1.4% and +1.27%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rockwell Automation. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% lower. At present, Rockwell Automation boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Rockwell Automation is currently trading at a Forward P/E ratio of 23.61. This signifies a discount in comparison to the average Forward P/E of 28.95 for its industry.
Also, we should mention that ROK has a PEG ratio of 2.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Industrial Automation and Robotics industry had an average PEG ratio of 6.82.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why Rockwell Automation (ROK) Dipped More Than Broader Market Today
The latest trading session saw Rockwell Automation (ROK - Free Report) ending at $286.38, denoting a -1.28% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq gained 0.17%.
The industrial equipment and software maker's shares have seen an increase of 4.12% over the last month, not keeping up with the Industrial Products sector's gain of 8.96% and the S&P 500's gain of 5.34%.
Analysts and investors alike will be keeping a close eye on the performance of Rockwell Automation in its upcoming earnings disclosure. In that report, analysts expect Rockwell Automation to post earnings of $2.23 per share. This would mark a year-over-year decline of 25.91%. 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.
For the full year, the Zacks Consensus Estimates project earnings of $12.29 per share and a revenue of $9.17 billion, demonstrating changes of +1.4% and +1.27%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rockwell Automation. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% lower. At present, Rockwell Automation boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Rockwell Automation is currently trading at a Forward P/E ratio of 23.61. This signifies a discount in comparison to the average Forward P/E of 28.95 for its industry.
Also, we should mention that ROK has a PEG ratio of 2.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Industrial Automation and Robotics industry had an average PEG ratio of 6.82.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.