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Milwaukee, Wisconsin-based Rockwell Automation, Inc. (ROK) provides industrial automation and digital transformation solutions. Valued at $33.1 billion by market cap, the company offers products such as control systems, motor control devices, sensors, and industrial control panels.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and Rockwell Automation exemplifies this category, signifying its substantial size, stability, and influence in the specialty industrial machinery industry. Its leadership in IoT, analytics, and cloud-based technologies position it at the forefront of smart manufacturing and Industry 4.0.
With a strong global presence and a well-established brand, Rockwell attracts high-value clients and maintains long-term partnerships.
Shares of Rockwell Automation have dropped 8% from their 52-week high of $312.76, reached on Dec. 27. Over the past three months, ROK's shares have surged 9.5%, outpacing the Industrial Select Sector SPDR Fund’s marginal gains during the same time frame.
Shares of Rockwell Automation have retreated 8% from their 52-week high of $312.76, achieved on December 27. However, in the past three months, ROK has delivered an impressive 9.5% rally, significantly outperforming the Industrial Select Sector SPDR Fund (XLI), which posted only marginal gains during the same period.
Despite this short-term momentum, ROK’s longer-term performance tells a different story. The stock is down 7.3% year-to-date and has slipped 5.8% over the past 52 weeks, in stark contrast to the XLI's robust 16.2% gain in 2024 and 17.8% growth over the last year.
Encouragingly, ROK has been trading above both its 50-day and 200-day moving averages since early November, signaling a potential recovery in market sentiment.
ROK's subdued stock performance this year mirrors challenges from a sluggish manufacturing sector and broader economic pressures. On Nov. 7, shares fell 5.8% following the release of mixed Q4 earnings results. Revenue declined 20.6% year-over-year to $2.04 billion, missing the $2.07 billion consensus estimate, while adjusted EPS dropped 32.1% to $2.47, narrowly beating expectations of $2.40.
Looking ahead, the company issued cautious fiscal 2025 guidance, forecasting adjusted EPS between $8.60 and $9.80 as it continues to navigate persistent market challenges.
Within the industrial sector, ROK contends with strong competition, particularly from Cummins Inc. (CMI), which has outperformed with a 44.7% return over the past year and 46.4% in 2024, surpassing both ROK and XLI.
Considering its grim price action over the past year, analysts are cautiously bullish about ROK's prospects. The stock has a consensus rating of "Moderate Buy" from 23 analysts in coverage. The mean price target of $292.76 reflects a 1.8% premium over current price levels.
