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Here's Why Rockwell Automation (ROK) Fell More Than Broader Market

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The latest trading session saw Rockwell Automation (ROK - Free Report) ending at $280.23, denoting a -1.11% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.72%. Elsewhere, the Dow lost 1%, while the tech-heavy Nasdaq lost 0.95%.

Shares of the industrial equipment and software maker have depreciated by 1.67% over the course of the past month, underperforming the Industrial Products sector's gain of 4.93% and the S&P 500's gain of 2.16%.

Investors will be eagerly watching for the performance of Rockwell Automation in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.23, indicating a 25.91% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.11 billion, down 7.16% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.29 per share and revenue of $9.17 billion, which would represent changes of +1.4% and +1.27%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Rockwell Automation. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Rockwell Automation holds a Zacks Rank of #3 (Hold).

Looking at valuation, Rockwell Automation is presently trading at a Forward P/E ratio of 23.06. This denotes a discount relative to the industry's average Forward P/E of 25.48.

We can additionally observe that ROK currently boasts a PEG ratio of 2.65. 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. The Industrial Automation and Robotics was holding an average PEG ratio of 5.77 at yesterday's closing price.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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