Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, helping investors identify stocks likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] Momentum Score - Assesses stocks based on price trends and earnings outlook, utilizing recent price changes and earnings estimate revisions [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating, highlighting stocks with attractive value, growth potential, and momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7] - There are over 800 stocks rated 1 or 2, making it essential to use Style Scores for effective stock selection [8] Stock Example: Rockwell Automation - Rockwell Automation, based in Milwaukee, WI, operates in over 100 countries, with approximately 50% of sales from the U.S. [11] - Currently rated 3 (Hold) with a VGM Score of B, it has a Momentum Style Score of A and a 15.3% increase in share price over the past four weeks [12] - Recent upward revisions in earnings estimates and a +12.3% average earnings surprise make Rockwell Automation a notable stock for investors [12]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [3] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score focuses on price trends and earnings outlook changes, helping investors identify favorable times to invest in high-momentum stocks [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment styles [7] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to guide investors in portfolio creation, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988 [8] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores to narrow down choices [9] Stock to Watch: Rockwell Automation - Rockwell Automation, based in Milwaukee, WI, specializes in industrial automation and information solutions, generating around 50% of its sales from the U.S. [12] - The company holds a 3 (Hold) Zacks Rank with a VGM Score of B and a Growth Style Score of B, indicating a forecasted year-over-year earnings growth of 10% for the current fiscal year [12][13] - Recent earnings estimates for fiscal 2026 have been revised higher, with the Zacks Consensus Estimate increasing by $0.06 to $11.58 per share, alongside an average earnings surprise of +12.3% [13]

Group 1 - Rockwell Automation is transitioning from a traditional efficiency enhancer to a dynamic balancer between supply and demand, aiming to stimulate new supply by creating new demand [1] - The company is shifting its focus from merely improving production efficiency to exploring how to create greater value, indicating a strategic elevation in its approach [2] - At the CIIE, Rockwell showcased its integration of digital and intelligent technologies across emerging sectors, emphasizing the connection between upstream and downstream industrial chains [3] Group 2 - Rockwell Automation has entered the healthcare sector, applying industrial lean principles to enhance the efficiency of healthcare systems in response to global aging trends [4]

Core Insights - Rockwell Automation showcases its commitment to digital transformation and smart manufacturing at the China International Import Expo, emphasizing the importance of AI, green technology, and innovation in driving new industrial growth [1] - The company believes that China's unique advantages, such as its comprehensive industrial system and rich application scenarios, will facilitate the integration of AI capabilities into traditional industries [1][2] - The demand for AI and machine learning in manufacturing is rapidly increasing, with 41% of manufacturers already adopting these technologies to enhance automation and address skill gaps [3][4] Group 1: AI and Energy Transformation - AI is expected to increase energy demand while also optimizing energy efficiency, contributing to carbon neutrality efforts [2] - China is focusing on a comprehensive green energy transition, which will reshape global supply chains and create significant business opportunities in AI and energy sectors [2] - The challenge lies in effectively utilizing renewable energy sources to meet the growing energy needs of AI development [2] Group 2: AI Adoption in Manufacturing - A significant portion of manufacturers (95%) plan to invest in AI and machine learning technologies within the next five years, with quality control being the top application area [3][4] - The adoption of generative and causal AI is growing, indicating a shift from experimental phases to more mature deployments [3] - The integration of AI into various industrial applications remains challenging due to the diverse needs of different sectors [4] Group 3: Globalization and Market Expansion - Despite global supply chain challenges, Chinese companies are accelerating their globalization efforts, leveraging their substantial industrial supply capacity [4] - Localized service provision is crucial for companies looking to expand internationally, as they must align their offerings with local market demands [4][5] - Rockwell Automation's collaboration with Yichao Packaging exemplifies how intelligent machine solutions can enhance international competitiveness through technological upgrades [5]

Core Viewpoint - Rockwell Automation emphasizes the transformative potential of AI in reshaping industrial landscapes, highlighting China's unique advantages in leveraging AI capabilities through rich application scenarios and a complete industrial system [1][2]. Group 1: AI and Industrial Transformation - AI is identified as a core driver of new productivity, with the potential to significantly enhance industrial competitiveness during China's 14th Five-Year Plan [1]. - The demand for computing power is expected to rise alongside energy needs, but AI can also optimize energy consumption, contributing positively to carbon neutrality efforts [3][4]. - Rockwell Automation's survey indicates that 41% of manufacturers have adopted AI/ML technologies to address skill gaps and labor shortages, with 95% planning to invest in AI/ML within the next five years [6]. Group 2: Green Energy and Opportunities - China's energy transition is seen as a foundation for new productivity, with a focus on green energy sources that can support AI development [4][5]. - The country has abundant clean energy resources, particularly in the northwest, but the challenge lies in effectively utilizing and transmitting this energy [5]. - The integration of AI with energy systems presents significant business opportunities across the entire energy supply chain, from generation to distribution [2][4]. Group 3: Global Supply Chain and Market Dynamics - Despite global supply chain challenges, Chinese companies are accelerating their globalization efforts, leveraging their substantial industrial supply capacity [8]. - Rockwell Automation's collaboration with companies like Yichao Packaging illustrates the shift from traditional machinery to intelligent solutions, enhancing international competitiveness [8].

Core Insights - Rockwell Automation has showcased its innovative solutions at the China International Import Expo (CIIE) for five consecutive years, focusing on four key themes: digital intelligence, sustainability, technological innovation, and openness [2] - The company aims to leverage the CIIE platform to connect with a wide range of ecosystem partners, driving technological innovation from concept to large-scale development, thereby contributing to sustainable development [2] - The company plans to deepen its focus on sectors such as healthcare, transportation, technology, and energy, recognizing the growing demand driven by factors like aging population and environmental pressures [3] Company Strategy - Rockwell Automation emphasizes the importance of understanding market demands through resources accessed at the CIIE, enhancing its ability to connect industry needs with available resources [2] - The company is committed to facilitating cross-industry collaboration to advance the industrial chain towards higher-end, intelligent, and green solutions [2] - The company recognizes the global influence of the Chinese market and aims to integrate valuable global resources to enhance the value of Chinese industries on a worldwide scale [3] Industry Trends - The Chinese "14th Five-Year Plan" highlights the acceleration of new momentum in digital, green, and intelligent sectors, which aligns with Rockwell Automation's focus on new quality productivity [3] - The healthcare sector is identified as a significant area of growth, with the potential for industrial capabilities to be applied within hospital systems, reflecting a broader societal impact [3]

Core Insights - Rockwell Automation has showcased its innovative solutions at the China International Import Expo (CIIE) for five consecutive years, focusing on four key themes: digital intelligence, sustainability, scientific innovation, and openness [1][2] - The company aims to leverage the CIIE platform to connect with a wide range of ecosystem partners, driving technological innovation from concept to large-scale development [1] - Rockwell Automation emphasizes the importance of understanding market demands and resource connections to address industry and societal challenges for sustainable development [1][2] Industry Focus - The company is concentrating on sectors such as healthcare, transportation, technology, and energy, with a particular emphasis on the healthcare sector due to the increasing demand driven by aging populations and lifestyle factors [2] - The integration of industrial capabilities into healthcare systems is seen as a significant opportunity, as the demand in this sector is broader and has higher replicability compared to industrial scenarios [2] Strategic Vision - Rockwell Automation aligns its strategy with China's 14th Five-Year Plan, which aims to accelerate the development of new driving forces in digital, green, and intelligent sectors [2] - The company recognizes the global influence of the Chinese market and aims to enhance its layout to connect valuable resources worldwide, extending the reach of Chinese supply chains [2]

Rockwell Automation hitting an all-time high after better than expected sales growth for fiscal 2026. Earnings and revenue also came in higher than expectations. Rockwell also saying it is dissolving its joint venture with SLB.Joining us now exclusively is Rockwell Automation chairman and CEO Blake Morett. Blake, it's great to have you back on the program. Welcome.>> Great to be here. >> You know, uh, Wall Street really seeming to hone in on your guidance for 2026. What does it signal both about the company ...

Core Insights - Rockwell Automation Inc. reported adjusted earnings per share (EPS) of $3.34 for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of $2.94 and up from $2.53 in the prior-year quarter [1][9] - Total revenues for the quarter reached $2.32 billion, a 13.8% increase year over year, surpassing the Zacks Consensus Estimate of $2.21 billion [2][9] - The company expects reported sales growth of 3-7% and organic sales growth of 2-6% for fiscal 2026, with adjusted EPS projected between $11.20 and $12.20 [13] Financial Performance - Including one-time items, earnings were $1.23 per share in Q4, down from $2.09 in the prior-year quarter [2] - Gross profit increased by 21.1% year over year to $1.12 billion, with a gross margin of 48.4%, up from 45.5% in the previous year [3][9] - Selling, general and administrative expenses decreased by 2.9% year over year to $471 million, while consolidated segment operating income rose 27.1% to $520 million [4] Segment Performance - Intelligent Devices segment net sales were $1.09 billion, up 15% year over year, with operating earnings of $215 million [5] - Software & Control segment saw a 31% increase in net sales to $657 million, with operating earnings growing 83% to $205 million [6] - Lifecycle Services segment net sales decreased by 3% to $573 million, with operating earnings slightly down to $100 million [7] Annual Performance - For fiscal 2025, adjusted EPS was reported at $10.53, beating the Zacks Consensus Estimate of $9.96, with total revenues of $8.34 billion, a 0.9% increase from fiscal 2024 [8][10] - Cash flow from operations for the year was $1.54 billion, significantly up from $0.86 billion in the prior year [11] Shareholder Actions - In fiscal 2025, the company repurchased 1.5 million shares for $419 million, with $927 million remaining under the existing share-repurchase authorization [12] Strategic Developments - Rockwell Automation announced the dissolution of its Sensia joint venture, planning to regain ownership of the process automation business previously contributed to Sensia [14] Market Performance - Over the past year, Rockwell Automation shares have increased by 25.5%, outperforming the industry growth of 24.3% [15]

Market Overview - Technology stocks are significantly impacting the market, with Nvidia down 2.4%, Microsoft down 1.9%, and Amazon down 2.6% [1][11] - The S&P 500 dropped 1%, the Dow Jones Industrial Average fell 449 points (1%), and the Nasdaq composite fell 1.6% [11] Corporate Earnings - Corporate earnings and forecasts are under scrutiny, providing insights into the economy amidst limited information due to the government shutdown [2][7] - DoorDash experienced a sharp decline of 15.1% after announcing increased spending on product development [3][11] - Datadog's stock surged 21.1% following earnings that exceeded analysts' expectations, while Rockwell Automation rose 4.8% for similar reasons [3][11] Economic Context - The ongoing U.S. government shutdown is affecting various sectors, including airlines, which are facing staffing issues leading to a 10% reduction in air traffic across 40 high-volume markets [8][12] - Major indexes have had a record-setting year, raising concerns about potential overvaluation, particularly among large technology companies [6][11] Treasury Yields - Treasury yields have decreased, with the 10-year Treasury yield falling to 4.09% from 4.16% and the two-year Treasury yield dropping to 3.56% from 3.63% [9][12] Summary of Key Companies - American Airlines fell 2.4%, Delta Air Lines dropped 1.8%, and United Airlines decreased by 2.7% due to the impact of the government shutdown [8][12]