Trade-Ideas: Rockwell Automation (ROK) Is Today's New Lifetime High Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Rockwell Automation (ROK) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Rockwell Automation as such a stock due to the following factors:
- ROK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $91.0 million.
- ROK has traded 500 shares today.
- ROK is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ROK with the Ticky from Trade-Ideas. See the FREE profile for ROK NOW at Trade-IdeasMore details on ROK: Rockwell Automation, Inc. provides industrial automation power, control, and information solutions. It operates in two segments, Architecture & Software and Control Products & Solutions. The stock currently has a dividend yield of 1.9%. ROK has a PE ratio of 22.2. Currently there are 5 analysts that rate Rockwell Automation a buy, 1 analyst rates it a sell, and 7 rate it a hold.The average volume for Rockwell Automation has been 682,600 shares per day over the past 30 days. Rockwell Automation has a market cap of $16.5 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.34 and a short float of 1.5% with 2.78 days to cover. Shares are up 1.3% year-to-date as of the close of trading on Thursday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Rockwell Automation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 39.95% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ROK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ROCKWELL AUTOMATION has improved earnings per share by 10.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ROCKWELL AUTOMATION increased its bottom line by earning $5.36 versus $5.14 in the prior year. This year, the market expects an improvement in earnings ($6.20 versus $5.36).
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 3.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ROK has a quick ratio of 1.79, which demonstrates the ability of the company to cover short-term liquidity needs.
- You can view the full Rockwell Automation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV