The latest trading session saw Rockwell Automation (ROK Quick QuoteROK – Free Report) ending at $266.85, denoting a +0.3% adjustment from its last day’s close. The stock’s change was more than the S&P 500’s daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq increased by 0.27%.
Prior to today’s trading, shares of the industrial equipment and software maker had lost 5.44% over the past month. This has was narrower than the Industrial Products sector’s loss of 6.08% and lagged the S&P 500’s loss of 3.95% in that time.
Investors will be eagerly watching for the performance of Rockwell Automation in its upcoming earnings disclosure. The company’s earnings report is set to be unveiled on November 2, 2023. The company is expected to report EPS of $3.49, up 14.8% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.44 billion, indicating a 14.66% upward movement from the same quarter last year.
Investors might also notice recent changes to analyst estimates for Rockwell Automation. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% downward. Right now, Rockwell Automation possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Rockwell Automation is holding a Forward P/E ratio of 20.14. For comparison, its industry has an average Forward P/E of 25.16, which means Rockwell Automation is trading at a discount to the group.
It’s also important to note that ROK currently trades at a PEG ratio of 1.7. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. ROK’s industry had an average PEG ratio of 5.66 as of yesterday’s close.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 41% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.