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Milwaukee, Wisconsin-based Rockwell Automation, Inc. (ROK) provides industrial automation and digital transformation solutions. Valued at a market cap of $38.8 billion, the company offers hardware, software, and services that help manufacturers design, operate, and maintain more innovative, efficient, and sustainable production systems.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and ROK fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the specialty industrial machinery industry. By blending industrial IoT, advanced analytics, and scalable automation technologies, the company empowers industries such as automotive, life sciences, food & beverage, and energy to achieve greater efficiency, safety, and sustainability.
This industrial automation company has slipped 4.4% from its 52-week high of $360.92, reached on Jul. 24. Shares of ROK have gained 6.1% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 12.6% return during the same time frame.
Nonetheless, in the longer term, ROK has surged 33.7% over the past 52 weeks, outpacing NASX's 26% uptick over the same time period. Moreover, on a YTD basis, shares of ROK are up 20.7%, compared to NASX’s 14.7% rise.
To confirm its recent bearish trend, ROK has been trading below its 50-day moving average since early September, with slight fluctuations. However, it has remained above its 200-day moving average since early May.
On Aug. 6, ROK delivered its Q3 results. The company’s revenue grew 4.5% year-over-year to $2.1 billion, exceeding consensus estimates by 3.4%. Moreover, its adjusted EPS of $2.82 improved 4.1% from the year-ago quarter and came in 4.8% ahead of analyst expectations. However, despite these positives, its shares plunged 5% after the earnings release. Weakness in certain segments, including a drop in Lifecycle Services segment sales and operating earnings, along with a fall in Intelligent Devices segment operating earnings, may have made investors jittery.
ROK has outpaced its rival, Emerson Electric Co. (EMR), which gained 33.1% over the past 52 weeks and 9% on a YTD basis.
Despite ROK’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 24 analysts covering it, and the mean price target of $350.76 suggests a 1.7% premium to its current price levels.
