Rockwell Automation (ROK) Ascends But Remains Behind Market: Some Facts to Note

In the latest market close, Rockwell Automation (ROK) reached $305.30, with a +0.31% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.45% for the day.

Market participants will be closely following the financial results of Rockwell Automation in its upcoming release. It is anticipated that the company will report an EPS of $2.61, marking a 6.1% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.07 billion, up 4.57% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.82 per share and revenue of $9.26 billion, which would represent changes of +5.78% and +2.28%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Rockwell Automation. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. Rockwell Automation is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Rockwell Automation is currently exchanging hands at a Forward P/E ratio of 23.75. Its industry sports an average Forward P/E of 28.65, so one might conclude that Rockwell Automation is trading at a discount comparatively.

Investors should also note that ROK has a PEG ratio of 2.33 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Industrial Automation and Robotics industry had an average PEG ratio of 6.49 as trading concluded yesterday.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 92, which puts 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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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