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Rockwell Automation, Inc. (ROK), based in Milwaukee, Wisconsin, provides industrial automation and digital transformation solutions in North America, Europe, and globally. With a market cap of $29.2 billion, the company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services.
Companies worth $10 billion or more are generally described as "large-cap stocks," ROK fits this bill perfectly. As a leading industrial machinery company, With a global presence and strong service network, ROK effectively caters to manufacturers worldwide. It maintains a strong competitive edge through its technological leadership in industrial automation, diverse end-market exposure, and deep customer relationships.
Despite its strengths, the stock has fallen 15.8% from its 52-week high of $308.70, recorded on Feb. 10. ROK stock declined 9.1% over the past three months, underperforming the Gabelli Automation ETF’s (GAST) 3.2% decline during the same time frame.
ROK has declined 3.1% over the past six months and 6.5% over the past 52 weeks. In contrast, GAST has declined marginally over the past six months and surged 2.6% over the past 52 weeks, outperforming the stock.
ROK has been trading below its 200-day and 50-day moving average since early March, indicating a downtrend.
ROK’s stock declined 2.2% following its Q1 earnings release on Feb. 10. The company reported an 8.4% decrease in its sales during the quarter, which amounted to $1.8 billion, majorly caused by lower sales volume partially offset by the benefits from cost reduction and margin expansion actions. Moreover, its EPS came in at $1.83, surpassing the Wall Street estimates by 13.7%.
ROK’s rival, Emerson Electric Co. (EMR), is in the lead, with its shares surging 6.1% over the past six months and marginally over the past 52 weeks.
Analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 23 analysts in coverage. Its mean price target of $309.10 represents an upside of 18.9% from the current market prices.
On the date of publication, Kritika Sarmah 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.
