In the latest market close, Rockwell Automation (ROK) reached $310.62, with a -0.19% movement compared to the previous day. The stock trailed the S&P 500, which recorded a daily gain of 0.04%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.03%.
Coming into today, shares of the industrial equipment and software maker have gained 15.03% in the past month. In that same time, the Industrial Products sector gained 10.92%, while the S&P 500 gained 5.28%.
Analysts and investors alike will be paying close attention to Rockwell Automation’s performance in its upcoming earnings release. The company is expected to report EPS of $2.61, marking a 6.1% increase compared to the same quarter last year. At the same time, our most recent consensus estimate projects revenue of $2.07 billion, reflecting a 4.57% increase from the corresponding quarter last year.
For the full fiscal year, the Zacks Consensus Estimates forecast earnings of $12.82 per share and revenue of $9.26 billion, representing changes of +5.78% and +2.28%, respectively, from the prior year .
Investors should also note some recent adjustments to analyst estimates for Rockwell Automation. These revisions usually reflect the latest short-term business trends, which can change frequently. As a result, optimistic changes in ratings indicate a favorable outlook of analysts about the business health and profitability of the company.
Based on our research, we believe these rating revisions are directly related to near-term stock moves. To take advantage of this, we developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides a reasonable rating system.
The Zacks Rank system, ranging from No. 1 (Strong Buy) to No. 5 (Strong Sell), has a remarkable record of outperformance, validated by third-party audits, with stocks rated No. 1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. Rockwell Automation holds a Zacks Rank of #3 (Hold) now.
In terms of valuation, Rockwell Automation is currently trading with a Forward P/E ratio of 24.28. This represents a discount compared to its industry’s average Forward P/E of 29.65.
Investors should also note that ROK has a PEG ratio of 2.38 right now. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth. The average PEG ratio for the Industrial Automation and Robotics industry stood at 6.77 at the close of the market yesterday.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 87, placing it in the top 35% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ROK in the upcoming trading sessions, be sure to use Zacks.com.
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Rockwell Automation, Inc. (ROK): Free Analysis Report
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