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 0.8%. By the end of trading, Rockwell Automation fell $1.05 (-1.2%) to $84.26 on light volume. Throughout the day, 666,088 shares of Rockwell Automation exchanged hands as compared to its average daily volume of 946,300 shares. The stock ranged in price between $84.07-$86.19 after having opened the day at $86.10 as compared to the previous trading day's close of $85.31. Other companies within the Wholesale industry that declined today were: InfoSonics Corporation ( IFON), down 6.8%, Nash-Finch Company ( NAFC), down 4.0%, China Auto Logistics ( CALI), down 3.9% and VOXX International ( VOXX), down 3.8%.
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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 $12.1 billion and is part of the services sector. The company has a P/E ratio of 17.0, below the S&P 500 P/E ratio of 17.7. Shares are up 1.6% year to date as of the close of trading on Tuesday. Currently there are 5 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 solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Armco Metals Holdings ( CNAM), down 3.1%, Commercial Vehicle Group ( CVGI), down 2.9%, Coast Distribution System ( CRV), down 2.6% and Global Partners ( GLP), down 1.8%.

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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