Milwaukee, Wisconsin-based Rockwell Automation, Inc. (ROK) is a leading provider of industrial automation and digital transformation solutions. With a market cap of $34.7 billion, the company delivers its products and services under well-known brands such as Allen-Bradley, Rockwell Software, and Rockwell Automation. Its offerings help businesses improve productivity, safety, and sustainability by integrating control systems, software, and data analytics into manufacturing operations.

This industrial automation company has outperformed the broader market over the past 52 weeks. Shares of ROK have rallied 13.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.9%. Moreover, on a YTD basis, the stock is up 7.8%, compared to SPX’s 1% return. 

Zooming in further, ROK has also outpaced the Gabelli Automation ETF’s (GAST) 3.8% rise over the past 52 weeks and 2.2% uptick on a YTD basis. 

On May 7, shares of ROK skyrocketed 11.9% after its better-than-expected Q2 earnings release. The company’s revenue fell 5.9% year-over-year to $2 billion but topped the consensus estimates by 2%. Moreover, while its adjusted earnings of $2.45 per share declined 2% from the year-ago quarter, it still came in 17.2% above Wall Street estimates. The decline in top and bottom-line performance was primarily due to lower intelligent devices and lifecycle services segments sales. However, cost reduction measures and margin improvement efforts helped support profitability. 

Additionally, ROK raised its fiscal 2025 outlook, which might have further bolstered investor confidence. It now expects sales growth to be between -4.5% and 1.5%, and anticipates adjusted EPS in the range of $9.20 to $10.20. 

For the current fiscal year, ending in September, analysts expect ROK’s EPS to decline marginally year over year to $9.64. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters. 

Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 10 “Strong Buy,” 12 “Hold,” and one “Strong Sell” rating. 

This configuration is less bearish than a month ago, with three analysts suggesting a “Strong Sell” rating. 

On May 16, Mizuho Financial Group, Inc. (MFG) maintained a “Neutral” rating on ROK and raised its price target to $325, which indicates a 5.5% potential upside from the current levels. 

The mean price target of $310.38 represents a marginal premium from ROK’s current price levels, while the Street-high price target of $350 suggests an upside potential of 13.6%.