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Rockwell Automation Hits 52-Week High: What's Driving Its Performance?

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Rockwell Automation Inc. (ROK - Free Report) scaled a new 52-week high of $314.94 on Wednesday before ending the session a tad lower at $312.39. 

The company currently has a market capitalization of $35.3 billion and a Zacks Rank #3 (Hold).

What’s Aiding Rockwell Automation's Stock?

Improved 2025 Guidance: Rockwell Automation plans to mitigate tariff costs through pricing actions and supply-chain optimization. The company increased its adjusted EPS guidance for fiscal 2025 to $9.20-$10.20. It earlier expected an adjusted EPS of $8.60-$9.80. The mid-point of the updated guidance range indicates no year-over-year change, whereas the earlier mentioned range suggested a decline of 5%.

Focus on Portfolio Expansion: ROK is well-positioned to benefit from broadening its portfolio of hardware and software products, solutions, and services. It is also gaining traction from investments in the cloud. The company's FactoryTalk Design Studio includes a copilot, which improves automation system design efficiency and is integrated into this cloud-native application, an industry first.

Significant investments to globalize manufacturing, product development, building channel capability and partner networks will drive growth. The company is likely to witness above-market organic sales growth by expanding its served markets and improving offerings that will provide it with a competitive edge.

The company continues to drive process improvement, functional streamlining, material cost savings and manufacturing productivity to augment earnings growth.

Strategic Actions: Rockwell Automation plans to implement actions, which include restructuring, to adjust its cost structure. It achieved productivity savings of around $110 million in the second half of fiscal 2024. The company is on track to reach around $250 million in year-over-year productivity benefits in fiscal 2025.

Price increase actions to mitigate the impacts of inflationary pressures are also likely to improve margins. 

The company remains focused on buyouts that will augment its information solutions, and high-value service offerings and capabilities while expanding its global presence or enhancing process expertise. 

On Tuesday, the company announced that its newly released EtherNet/IP In-cabinet Solution aided Volga, a Rockwell Systems Integrator Partner, to reduce control panel wiring time by 66%. Volga's results also showed a 36% smaller panel footprint and a 32% weight reduction. This success demonstrates the value of our ethernet-enabled technology in driving productivity and competitiveness. This solution enables manufacturers to design and build sustainable, higher-quality control panels more efficiently.

ROK Stock’s Price Performance

In the past year, Rockwell Automation shares have gained 24.6% against the industry’s 11.8% decline.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

Stocks to Consider

Some better-ranked stocks from the Computer and Technology space are Ubiquiti Inc. (UI - Free Report) , Flex Ltd. (FLEX - Free Report) and Greenland Technologies Holding Corporation (GTEC - Free Report) . These the companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ubiquiti has an average trailing four-quarter earnings surprise of 29.9%. The Zacks Consensus Estimate for Ubiquiti’s 2025 earnings is pegged at $8.22 per share. UI shares have skyrocketed 189.9% over the past year.

Flex has an average trailing four-quarter earnings surprise of 16.2%. The Zacks Consensus Estimate for FLEX’s fiscal 2025 earnings is pegged at $2.91 per share. Flex’s shares gained 26.5% last year.

Greenland Technologies has an average trailing four-quarter earnings surprise of 17.7%. The Zacks Consensus Estimate for Greenland Technologies’s 2025 earnings is pegged at 48 cents per share. GTEC shares have risen 39.9% in the past year.

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