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Valued at $32.8 billion by market cap, Rockwell Automation, Inc. (ROK) is a global leader in industrial automation and digital transformation. Headquartered in Milwaukee, Wisconsin, the company specializes in advanced automation solutions, including hardware, software, and services that optimize manufacturing and production processes across a wide range of industries.
Shares of Rockwell Automation have underperformed the broader market over the past year. The stock has gained 8.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 32.1%. In 2024, ROK stock is down 4.7%, compared to SPX’s 26.2% rise on a YTD basis.
Zooming in further, ROK underperformed the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 35.1% over the past year and 26.1% on a YTD basis.
On Nov. 7, ROK stock dropped 5.8% after reporting mixed Q4 earnings results. Revenue declined 20.6% year-over-year to $2.04 billion, falling short of the $2.07 billion estimate, while adjusted EPS tumbled 32.1% to $2.47, exceeding expectations of $2.40. Looking ahead, the company provided cautious fiscal 2025 guidance, projecting adjusted EPS between $8.60 and $9.80, citing ongoing market headwinds.
For the current fiscal year, ending in September 2025, analysts expect Rockwell Automation’s EPS to decline 2.6% annually to $9.46 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 one other occasion.
Among the 23 analysts covering ROK stock, the consensus is a “Hold.” That’s based on seven “Strong Buy” ratings, 12 “Holds,” and four “Strong Sells.”
This configuration is more bullish than a month ago, with six analysts suggesting a “Strong Buy.”
On Nov. 26, Baird analyst Richard Eastman raised ROK’s price target to $305 from $290, citing confidence in the company’s strong positioning to capitalize on manufacturer investments for productivity and quality improvements.
While the stock currently trades above the average price target of $279.65, the Street-high price target of $345 indicates a potential upside of 16.6% from current levels.
