Rockwell Automation, Inc.
) reached a new 52-week high of $125.20 on Mar 10, up from its
previous high of $124.78.
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The stock closed at $123.74 at the end of trading yesterday, with
a solid one-year return of about 39% and year-to-date return of
about 5.2%, outperforming the S&P 500. The average volume of
shares traded over the last three months was roughly 788K.
Based in Milwaukee, Wis., this provider of automation equipment
has beaten the Zacks Consensus Estimate in the trailing four
quarters with an average surprise of 6.16%. Rockwell Automation
has a market cap of $17.2 billion and long-term expected earnings
growth of 30%.
On Jan 29, Rockwell Automation reported first-quarter fiscal 2014
adjusted earnings of $1.47 per share, up 20% from $1.23 earned in
the prior-year quarter. The results beat the Zacks Consensus
Estimate of $1.39.
Rockwell Automation raised its organic revenue growth in the
range of 3%-6% for fiscal 2014 from 2%-6%. The company also
modified adjusted earnings per share in the range of $6.00-$6.35
for the full year, as against $5.95-$6.35 projected earlier. The
company also expects free-cash flow conversion to be about 100%
of adjusted income primarily due to acquisition opportunities.
The company recently closed two important acquisitions, namely
vMonitor and Jacobs Automation. Both these acquisitions will add
specialized technology to the company's resources and aid in
expansion of footprint.
Moreover, we believe that Rockwell Automation will benefit from
expansion in emerging markets and opportunistic acquisitions.
Additionally, its strong balance sheet position and free cash
flow, along with dividends and share repurchases are expected to
generate long-term shareholder value.
Currently, Rockwell Automation carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some better-ranked stocks in the same sector include
Sun Hydraulics Corp.
Altra Industrial Motion Corp.
). While Kadant and Sun Hydraulics sport a Zacks Rank #1 (Strong
Buy), Altra Industrial Motion has a Zacks Rank #2 (Buy).