Rockwell Automation Hits 52-Week High: What's Driving Its Performance?

Rockwell Automation Inc. ROK scaled a new 52-week high of $314.94 on Wednesday before ending the session a tad lower at $312.39. The company currently has a market capitalization of $35.3 billion and a Zacks Rank #3 (Hold).What’s Aiding Rockwell Automation's Stock?Improved 2025 Guidance: Rockwell Automation plans to mitigate tariff costs through pricing actions and supply-chain optimization. The company increased its adjusted EPS guidance for fiscal 2025 to $9.20-$10.20. It earlier expected an adjusted EPS of $8.60-$9.80. The mid-point of the updated guidance range indicates no year-over-year change, whereas the earlier mentioned range suggested a decline of 5%.Focus on Portfolio Expansion: ROK is well-positioned to benefit from broadening its portfolio of hardware and software products, solutions, and services. It is also gaining traction from investments in the cloud. The company's FactoryTalk Design Studio includes a copilot, which improves automation system design efficiency and is integrated into this cloud-native application, an industry first.Significant investments to globalize manufacturing, product development, building channel capability and partner networks will drive growth. The company is likely to witness above-market organic sales growth by expanding its served markets and improving offerings that will provide it with a competitive edge.The company continues to drive process improvement, functional streamlining, material cost savings and manufacturing productivity to augment earnings growth.Strategic Actions: Rockwell Automation plans to implement actions, which include restructuring, to adjust its cost structure. It achieved productivity savings of around $110 million in the second half of fiscal 2024. The company is on track to reach around $250 million in year-over-year productivity benefits in fiscal 2025.Price increase actions to mitigate the impacts of inflationary pressures are also likely to improve margins. The company remains focused on buyouts that will augment its information solutions, and high-value service offerings and capabilities while expanding its global presence or enhancing process expertise. On Tuesday, the company announced that its newly released EtherNet/IP In-cabinet Solution aided Volga, a Rockwell Systems Integrator Partner, to reduce control panel wiring time by 66%. Volga's results also showed a 36% smaller panel footprint and a 32% weight reduction. This success demonstrates the value of our ethernet-enabled technology in driving productivity and competitiveness. This solution enables manufacturers to design and build sustainable, higher-quality control panels more efficiently.ROK Stock’s Price PerformanceIn the past year, Rockwell Automation shares have gained 24.6% against the industry’s 11.8% decline.  Image Source: Zacks Investment Research Stocks to ConsiderSome better-ranked stocks from the Computer and Technology space are Ubiquiti Inc. UI, Flex Ltd. FLEX and Greenland Technologies Holding Corporation GTEC. These the companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Ubiquiti has an average trailing four-quarter earnings surprise of 29.9%. The Zacks Consensus Estimate for Ubiquiti’s 2025 earnings is pegged at $8.22 per share. UI shares have skyrocketed 189.9% over the past year.Flex has an average trailing four-quarter earnings surprise of 16.2%. The Zacks Consensus Estimate for FLEX’s fiscal 2025 earnings is pegged at $2.91 per share. Flex’s shares gained 26.5% last year.Greenland Technologies has an average trailing four-quarter earnings surprise of 17.7%. The Zacks Consensus Estimate for Greenland Technologies’s 2025 earnings is pegged at 48 cents per share. GTEC shares have risen 39.9% in the past year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Flex Ltd. (FLEX): Free Stock Analysis Report Ubiquiti Inc. (UI): Free Stock Analysis Report Greenland Technologies Holding Corporation (GTEC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks