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Rockwell Automation, Inc. (ROK), headquartered in Milwaukee, Wisconsin, provides industrial automation and digital transformation solutions. Valued at $30.9 billion by market cap, the company offers products such as control systems, motor control devices, sensors, and industrial control panels.
Shares of this largest pure-play automation company have underperformed the broader market considerably over the past year. ROK has declined 11.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.5%. In 2024, ROK stock is down 13.7%, while SPX is up 17.8% on a YTD basis.
Narrowing the focus, ROK has also lagged behind the Vanguard Industrials Index Fund ETF Shares (VIS). The exchange-traded fund has gained about 22.5% over the past year. Moreover, the ETF’s 13.1% gains on a YTD basis outshine the stock’s losses over the same time frame.
On Aug. 7, ROK stock closed down marginally after reporting its Q3 earnings results. Its adjusted EPS of $2.71 exceeded Wall Street expectations of $2.11. The company’s revenue was $2.05 billion, topping Wall Street forecasts of $2.02 billion. ROK updated its full-year guidance and expects adjusted EPS to be $9.60.
For the current fiscal year, ending in September, analysts expect ROK’s EPS to decline 20.3% annually to $9.66 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 20 analysts covering ROK stock, the consensus is a “Hold.” That’s based on five “Strong Buy” ratings, 11 “Holds,” and four “Strong Sells.”
The configuration has been stable over the past months.
On Aug. 25, Wells Fargo & Company (WFC) analyst Joe O’Dea maintained a “Buy” rating on ROK with a price target of $293, implying a potential upside of 9.3% from current levels.
While ROK currently trades above its mean price target of $262.94, the Street-high price target of $294 suggests an upside potential of 9.7%.
On the date of publication, Neha Panjwani 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.
