Rockwell Automation Pressured As Short-Cycle Headwinds Spread

I don't believe there's much debate anymore about whether weakness in short-cycle industries is spreading, though longer-cycle industries have continued to hold up better (even if they're wobbling a bit) and some investors are still pinning their hopes on a second-half rebound. That's all bad news for Rockwell Automation (ROK), as this leading pure-play in industrial automation continues to see slowing markets that are sapping its growth and momentum.

The short-cycle slowdown is manageable; Rockwell has always been a cyclical business, and that's just part of the landscape. Beyond that, though, there are some interesting arguments about Rockwell's operating philosophy and its place in the future of industrial automation. I like buying proven operators when these sorts of questions crop up, but I'd rather hold off in the hope of getting another crack at the shares below $150.

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Rockwell Automation Pressured As Short-Cycle Headwinds Spread