Rockwell Automation, Inc. (ROK), an industrial automation company based in Milwaukee, Wisconsin, has seen its stock surge 55% from April lows, reaching new 52-week highs as of Wednesday. This growth positions ROK to potentially break out of a trading range it has been in since late 2021, amid expectations of strong earnings growth and increased automation in manufacturing.
In Q2 FY25, Rockwell exceeded earnings estimates and provided positive guidance despite tariff concerns. The company forecasts a return to robust earnings and sales growth, projecting a 16% increase in adjusted earnings and 7% higher sales for FY26. Notably, ROK’s 20-year stock performance has outpaced the S&P 500, with a total return of 907% compared to the S&P’s 725%.
ROK trades at a 38% discount to its peak Price/Earnings-to-Growth ratio and offers a 1.5% dividend yield, which is higher than the S&P 500’s approximately 1.2%. As major firms invest billions into U.S. manufacturing, Rockwell is poised to benefit from growth across various industries, bolstered by its collaborations integrating AI and robotics technologies.
