Core 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]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Rockwell Automation (ROK) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 4.8%, but projected EPS growth for this year is expected to be 13.9%, surpassing the industry average of 12.9% [4] Group 2: Financial Metrics - Rockwell Automation's year-over-year cash flow growth is currently 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 3: Earnings Estimates - The current-year earnings estimates for Rockwell Automation have been revised upward, with the Zacks Consensus Estimate increasing by 0.5% over the past month [8] - The combination of a Growth Score of B and a Zacks Rank 2 positions Rockwell Automation favorably for potential outperformance [10]

Core Viewpoint - Rockwell Automation (ROK) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - For Rockwell Automation, the recent upgrade reflects an improvement in its underlying business, suggesting that investor sentiment may drive the stock price higher [5]. - The Zacks Consensus Estimate for Rockwell Automation indicates expected earnings of $11.99 per share for the fiscal year ending September 2026, with a 5.4% increase in estimates over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Rockwell Automation's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Core Insights - Rockwell Automation, Inc. (ROK) is a leading global industrial automation and digital transformation company with a market cap of $42.3 billion [1] - The company has shown strong stock performance, with a 29.5% increase over the past 52 weeks, outperforming the S&P 500 Index's 13.7% gain [2] - ROK's fourth-quarter earnings report indicated a strong finish to the year, with $2.3 billion in sales, a 14% year-over-year increase, and adjusted EPS rising 32% to $3.34 [4] Financial Performance - ROK's sales growth was driven by the Software & Control segment, which surged 31% to $657 million, and the Intelligent Devices segment, which rose 15% to $1.09 billion [4] - For FY2026, ROK is guiding for 3–7% sales growth, 2–6% organic growth, and adjusted EPS of $11.20–$12.20 [4] - Analysts expect ROK's adjusted EPS to grow 13.5% year-over-year to $11.95 for the fiscal year ending in September 2026 [5] Analyst Ratings and Price Targets - The consensus rating among 24 analysts covering ROK is a "Moderate Buy," with 11 "Strong Buy" ratings, 12 "Holds," and one "Strong Sell" [5] - Wells Fargo analyst Joe O'Dea reaffirmed a "Hold" rating on ROK with a price target of $355, while the mean price target of $384.62 suggests a 3.9% premium to current price levels [6] - The highest price target of $450 indicates a potential upside of 21.6% [6]

Core Insights - Rockwell Automation's international operations are crucial for assessing its financial strength and growth potential [1][2][3] Group 1: Financial Performance - For the quarter ending September 2025, Rockwell Automation reported total revenue of $2.32 billion, reflecting a year-over-year increase of 13.8% [4] - Latin America contributed $152 million, accounting for 6.6% of total revenue, with a surprise increase of 21.07% compared to analyst expectations [5] - Asia Pacific generated $280 million, representing 12.1% of total revenue, exceeding the consensus estimate by 18.77% [6] - EMEA contributed $406 million, making up 17.5% of total revenue, with a slight surprise of 1.04% over analyst expectations [7] Group 2: Future Projections - Analysts project Rockwell Automation will achieve revenues of $2.06 billion for the ongoing fiscal quarter, marking a 9.6% increase from the previous year [8] - For the full year, total annual revenue is expected to reach $8.84 billion, indicating a 6% increase compared to last year [9] Group 3: Market Dependency - The company's reliance on international markets presents both opportunities and challenges, making the monitoring of overseas revenue trends essential for predicting future performance [10][11]

Core Insights - The international operations of Rockwell Automation (ROK) are crucial for assessing its financial resilience and growth prospects, especially in the interconnected global economy [1][2] Revenue Performance - ROK's total revenue for the quarter ended June 2025 was $2.14 billion, reflecting a year-over-year increase of 4.6% [4] - Latin America contributed $132 million, or 6.2% of total revenue, which was a surprise of -24.62% compared to the consensus estimate of $175.12 million [5] - EMEA accounted for $392 million, or 18.3% of total revenue, exceeding expectations by +12.1% [6] - Asia Pacific generated $266 million, or 12.4% of total revenue, with a surprise of +19.28% against an expected $223 million [7] Future Revenue Expectations - Analysts project ROK to report $2.18 billion in total revenue for the current fiscal quarter, indicating a 7% increase from the previous year [8] - For the full year, total revenue is expected to be $8.21 billion, reflecting a decline of 0.7% from the previous year [9] Market Dependency - ROK's reliance on international markets for revenue presents both opportunities and challenges, making the monitoring of overseas revenue trends essential for predicting future performance [10][11]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Rockwell Automation despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Rockwell Automation is expected to report quarterly earnings of $2.69 per share, reflecting a -0.7% change year-over-year, while revenues are projected at $2.07 billion, an increase of 0.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.86% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +1.66% for Rockwell Automation, suggesting a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Rockwell Automation exceeded the expected earnings of $2.09 per share by delivering $2.45, resulting in a surprise of +17.22% [13]. The company has beaten consensus EPS estimates in all of the last four quarters [14]. Additional Considerations - While an earnings beat can influence stock movement, other factors may also play a significant role in determining stock performance post-earnings release [15].