This Hot Stock Has Made 9 New Highs This Month

• Rockwell Automation (ROK) hit a new 52-week high on July 24.
• Shares show strong momentum and are trading above key moving averages.
• ROK has a 100% technical “Buy” signal via Barchart.
• Rockwell shares are up 28% over the past year and 23% in the year to date. 

Today’s Featured Stock

Valued at $39.9 billion, Rockwell Automation (ROK) provides industrial automation and information solutions worldwide. Its brands include Rockwell Automation, Allen-Bradley, and Rockwell Software. 

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. ROK checks those boxes. Since the Trend Seeker signaled a buy on May 8, the stock has gained 21.51%.

More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.

 

ROK Price vs. Daily Moving Averages:

www.barchart.com

Barchart Technical Indicators for Rockwell Automation:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Rockwell Automation shares hit a new 52-week high on July 24, touching $360.92 in intraday trading. Shares are currently 2% off that high. 

• ROK has a 100% technical “Buy” signal.
• The stock recently traded at $352.96, above its 50-day moving average of $331.56.
• Rockwell Automation has a Weighted Alpha of +44.83.
• The stock has gained 28.43% over the past year.
• ROK has its Trend Seeker “Buy” signal intact.
• Rockwell Automation is trading above its 20, 50 and 100-day moving averages.
• The stock made nine new highs and gained 6.49% in the last month.
• Relative Strength Index is at 61.94%.
• The technical support level is $351.05.

Don’t Forget the Fundamentals:

• $39.9 billion market capitalization.
• Trailing price-earnings ratio of 37.64x.
• 1.48% dividend yield.
• Revenue is projected to grow 6.67% next year.
• Earnings are estimated to increase 16.89% next year.

Analyst and Investor Sentiment on Rockwell Automation:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are bullish, but some major advisory sites are split.

• The Wall Street analysts tracked by Barchart issued 12 “Strong Buy,” 10 “Hold” and one “Sell” opinion on the stock.
• Value Line gives the company its highest rating.
• CFRA’s Market Scope rates the stock a “Hold.”
• 24,490 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Rockwell Automation currently has momentum and is hitting new highs. It has positive sentiment from Wall Street, plus analysts project small increases in revenue and double-digit growth in earnings.

I caution that ROK is volatile and speculative — use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.