Why Rockwell Automation (ROK) is a Top Momentum Stock for the Long-Term

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]