Rockwell Automation(US:ROK) ZACKS·2026-01-30 18:45Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Rockwell Automation (ROK) is currently highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it indicates strong future prospects [3] - Rockwell Automation has a historical EPS growth rate of 4.8%, but projected EPS growth for this year is 15.1%, surpassing the industry average of 14.4% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [5] - Rockwell Automation's year-over-year cash flow growth stands at 21.6%, significantly higher than the industry average of -1.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 10.3%, compared to the industry average of 4.8% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, making them an important consideration for investors [7] - Current-year earnings estimates for Rockwell Automation have increased by 0.4% over the past month, indicating a positive revision trend [7] Group 5: Overall Assessment - Rockwell Automation has achieved a Zacks Rank of 2 and a Growth Score of B, reflecting its strong growth potential based on various metrics [8] - The combination of these factors positions Rockwell Automation as a potential outperformer and a solid choice for growth investors [9]