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Rockwell Automation (ROK) Beats Stock Market Upswing: What Investors Need to Know

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Rockwell Automation (ROK - Free Report) closed at $289.05 in the latest trading session, marking a +1.39% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, added 1.14%.

Shares of the industrial equipment and software maker witnessed a gain of 8.39% over the previous month, beating the performance of the Industrial Products sector with its gain of 7.89% and the S&P 500's gain of 5.2%.

Investors will be eagerly watching for the performance of Rockwell Automation in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.36, showcasing a 21.59% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.11 billion, indicating a 7.16% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.43 per share and a revenue of $9.17 billion, signifying shifts of +2.56% and +1.27%, respectively, from the last year.

Any recent changes to analyst estimates for Rockwell Automation should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 witnessed a 3.24% decrease. Right now, Rockwell Automation possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Rockwell Automation is currently exchanging hands at a Forward P/E ratio of 22.93. This indicates a discount in contrast to its industry's Forward P/E of 28.77.

One should further note that ROK currently holds a PEG ratio of 2.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Industrial Automation and Robotics industry had an average PEG ratio of 6.83 as trading concluded yesterday.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 99, this industry ranks in the top 40% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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