Shares of Rockwell Automation (ROK) have been strong performers lately, with the stock up 5.4% over the past month. The stock hit a new 52-week high of $486.47 in the previous session. Rockwell Automation has gained 23.2% since the start of the year compared to the 14.2% move for the Zacks Computer and Technology sector and the 80% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 5, 2026, Rockwell Automation reported EPS of $3.3 versus consensus estimate of $2.89.
For the current fiscal year, Rockwell Automation is expected to post earnings of $12.95 per share on $8.97 in revenues. This represents a 22.98% change in EPS on a 7.52% change in revenues. For the next fiscal year, the company is expected to earn $14.53 per share on $9.46 in revenues. This represents a year-over-year change of 12.21% and 5.51%, respectively.
Valuation Metrics
Though Rockwell Automation has recently hit a 52-week high, what is next for Rockwell Automation? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Rockwell Automation has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 37X current fiscal year EPS estimates, which is a premium to the peer industry average of 29.5X. On a trailing cash flow basis, the stock currently trades at 30.9X versus its peer group's average of 21X. Additionally, the stock has a PEG ratio of 3.08. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Rockwell Automation currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Rockwell Automation meets the list of requirements. Thus, it seems as though Rockwell Automation shares could have a bit more room to run in the near term.
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Rockwell Automation, Inc. (ROK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).