Shares of Rockwell Automation (ROK) have been strong performers lately, with the stock up 3.9% over the past month. The stock hit a new 52-week high of $420.19 in the previous session. Rockwell Automation has gained 7.2% since the start of the year compared to the 29% move for the Zacks Computer and Technology sector and the 41.6% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 6, 2025, Rockwell Automation reported EPS of $3.34 versus consensus estimate of $2.94 while it beat the consensus revenue estimate by 4.64%.
For the current fiscal year, Rockwell Automation is expected to post earnings of $11.99 per share on $8.87 in revenues. This represents a 13.87% change in EPS on a 6.3% change in revenues. For the next fiscal year, the company is expected to earn $13.6 per share on $9.41 in revenues. This represents a year-over-year change of 13.45% and 6.16%, respectively.
Valuation Metrics
While Rockwell Automation has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Rockwell Automation has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 34.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.5X. On a trailing cash flow basis, the stock currently trades at 26.9X versus its peer group's average of 17.6X. Additionally, the stock has a PEG ratio of 2.81. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Rockwell Automation currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Rockwell Automation fits the bill. Thus, it seems as though Rockwell Automation shares could have potential in the weeks and months to come.
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Rockwell Automation, Inc. (ROK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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