Rockwell Automation (ROK): Today's Featured Wholesale Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Rockwell Automation ( ROK) pushed the Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Rockwell Automation fell $2.10 (-2.3%) to $88.59 on average volume. Throughout the day, 929,835 shares of Rockwell Automation exchanged hands as compared to its average daily volume of 996,600 shares. The stock ranged in price between $87.94-$91.00 after having opened the day at $90.69 as compared to the previous trading day's close of $90.69. Other companies within the Wholesale industry that declined today were: InfoSonics Corporation ( IFON), down 5.8%, Coast Distribution System ( CRV), down 5.1%, Louisiana-Pacific ( LPX), down 4.8% and Edgen Group Inc Class A ( EDG), down 3.4%.
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Rockwell Automation, Inc. provides industrial automation power, control, and information solutions. It operates in two segments, Architecture & Software and Control Products & Solutions. Rockwell Automation has a market cap of $12.7 billion and is part of the services sector. The company has a P/E ratio of 17.9, above the S&P 500 P/E ratio of 17.7. Shares are up 8.0% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Rockwell Automation a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Rockwell Automation as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Armco Metals Holdings ( CNAM), down 16.7%, Rada Electronics Industries ( RADA), down 5.7%, China Auto Logistics ( CALI), down 3.5% and Peerless Systems Corporation ( PRLS), down 3.0%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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