Rockwell Automation, Inc.

(New York Stock Exchange)
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Somewhat Bullish +50

Rockwell Automation to Present at the Wolfe Research 19th Annual Global Transportation and Industrials Conference

AI-generated analysis

πŸ“ˆ Rockwell Automation (ROK) shares have gained 17.8% over the past month and hit a new 52-week high of $463.49.

πŸš€ The stock has outperformed its Zacks sector peers, rising 18.1% year-to-date compared to a 15% sector gain.

βœ… ROK has delivered positive earnings surprises in all four consecutive quarters, with EPS of $3.3 vs $2.89 consensus in May 2026.

πŸ“Š Analysts expect current fiscal year earnings of $12.21 per share on $8.83 billion in revenues.

πŸ“… For the next fiscal year, projected earnings are $13.93 per share on $9.38 billion in revenues.

⚠️ Valuation metrics show ROK trading at a premium to peers with a 37.6X forward P/E versus a 29.1X industry average.

πŸ“‰ The company holds a Value Score of F, though it maintains a Growth Score of B and Momentum Score of A for a VGM Score of B.

πŸ‘ Rockwell Automation carries a Zacks Rank of #2 (Buy) driven by favorable earnings estimate revisions from analysts.

🎯 The stock fits the Zacks Investment Research recommendation criteria for stocks with ranks 1 or 2 and Style Scores of A or B.

πŸ’‘ Investors are advised to monitor valuation metrics like PEG ratio (3.26) to assess potential pullback risks from current highs.

🏒 Management will present at the Wolfe Research 19th Annual Global Transportation and Industrials Conference soon.

πŸ“ˆ Current fiscal year revenue growth is projected at 5.91%, while next year's growth is expected at 6.21%.

Bullish Signals
  • Shares of Rockwell Automation have been strong performers lately, surging 17.8% over the past month and hitting a new 52-week high of $463.49.
  • The stock has gained 18.1% year-to-date, significantly outpacing both the Zacks Computer and Technology sector (15%) and the Zacks Electronics - Miscellaneous Products industry (41.2%).
  • Rockwell Automation has a perfect record of positive earnings surprises, missing no earnings consensus estimates in any of the last four quarters.
  • In its latest earnings report on May 5, 2026, the company reported EPS of $3.3, which beat the consensus estimate of $2.89.
  • For the current fiscal year, analysts expect earnings to grow at 15.95% while revenues are projected to increase by 5.91%.
  • Expectations for the next fiscal year show continued growth with EPS estimated at $13.93 per share on $9.38 in revenues.
  • The company carries a Zacks Rank of #2 (Buy), supported by favorable earnings estimate revisions from covering analysts.
  • Rockwell Automation holds an A grade for Momentum and a B grade for Growth, resulting in a combined VGM Score of B.
  • Management's strong recent performance positions the stock to have potential in the weeks and months to come for investors.
Risk Factors
  • Rockwell Automation trades at a premium valuation with a forward P/E of 37.6X compared to the peer industry average of 29.1X.
  • On a trailing cash flow basis, the stock trades at 29.6X versus its peer group's average of 22.2X, indicating potential downside if earnings growth does not sustain these high multiples.
  • The company carries a PEG ratio of 3.26, suggesting it may be overvalued relative to its expected earnings growth rate.
  • Rockwell Automation received a Value Score of F on the Zacks Style Scores, signaling that the stock lacks intrinsic value characteristics despite its Growth and Momentum ratings.
Full Analysis
Rockwell Automation, Inc. (ROK) has been a significant performer in the market recently, with shares rising 17.8% over the past month and hitting a new 52-week high of $463.49. Since the start of the year, the stock has gained 18.1%, outperforming both the Zacks Computer and Technology sector and the Zacks Electronics - Miscellaneous Products industry. The company maintains a strong track record of beating earnings estimates, having missed consensus in none of the last four quarters. Its most recent quarterly report on May 5, 2026, showed earnings per share (EPS) of $3.3 against an expected $2.89. Analysts project full-year earnings of $12.21 per share on revenues of $8.83, representing a 15.95% EPS increase and a 5.91% revenue rise compared to the prior fiscal year. For the upcoming fiscal year, estimates stand for $13.93 in EPS and $9.38 in revenue, implying further growth with year-over-year changes of 14.01% and 6.21%, respectively. While the stock's recent gains have pushed its valuation to a premium relative to peersβ€”trading at 37.6 times estimated current fiscal year earnings versus a peer average of 29.1X, and 29.6 times trailing cash flow versus a peer average of 22.2Xβ€”the company still carries a Zacks Rank of #2 (Buy). The stock is graded as an F in Value but holds B and A scores for Growth and Momentum respectively, resulting in a VGM Score of B. This valuation profile suggests the stock does not appear undervalued but aligns with a growth-oriented investment style. Zacks Investment Research recommends selecting stocks with a Rank of #1 or #2 and Value/Growth/Momentum scores of A or B, making Rockwell Automation fit these criteria. Analysts attribute the current positive outlook to favorable earnings estimate revisions from covering analysts, suggesting potential for continued share appreciation in the coming weeks and months despite the high entry point relative to historical value metrics.