Sunday, November 12, 2017

Is Rockwell Automation a Buy?

Rockwell Automation (NYSE:ROK) is well known as a backdoor way to play growth in the industrial internet of things (IIOT). However, its 50% stock-price surge in the past year is probably more a matter of having its string of earnings upgrades come largely from improving capital spending trends in industrial automation.
The company heads into its fourth-quarter earnings on Nov. 8 with a lot of momentum, but given its high valuation on a current and forward basis, management probably needs to demonstrate its strong run can continue. In this context, let's look at the three things to focus on in the results presentations.