Rockwell Automation, Inc. (ROK) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Rockwell Automation has shown strong stock performance, reaching a 52-week high and outperforming its sector and industry peers in terms of stock returns [1] Group 1: Stock Performance - Rockwell Automation's stock has increased by 3.9% over the past month and 7.2% since the beginning of the year, compared to a 29% increase in the Zacks Computer and Technology sector and a 41.6% return in the Zacks Electronics - Miscellaneous Products industry [1] Group 2: Earnings Performance - The company has consistently beaten earnings estimates, with an EPS of $3.34 reported against a consensus estimate of $2.94 in its last earnings report [2] - For the current fiscal year, Rockwell Automation is projected to achieve earnings of $11.99 per share on revenues of $8.87 billion, reflecting a 13.87% increase in EPS and a 6.3% increase in revenues [3] Group 3: Valuation Metrics - The stock trades at a valuation of 34.8 times the current fiscal year EPS estimates, which is above the peer industry average of 24.5 times [7] - On a trailing cash flow basis, the stock trades at 26.9 times compared to the peer group's average of 17.6 times, with a PEG ratio of 2.81 [7] Group 4: Zacks Rank and Style Scores - Rockwell Automation holds a Zacks Rank of 2 (Buy), indicating a favorable earnings estimate revision trend [8] - The company has a Value Score of D, a Growth Score of B, and a Momentum Score of A, resulting in a combined VGM Score of B [6]