Automation specialist Rockwell Automation (ROK)
reported a decent quarter for its fiscal first quarter (calendar fourth
quarter), but Rockwell's valuation isn't predicated on decent results -
the valuation embeds expectations of superior growth and margins, and
I'm concerned that investors may continue to be disappointed on that
front, as the company's reputation can overshadow its reality. On a more
positive note, the company's digital industrial initiatives do appear
to be gaining some traction.
Rockwell shares are down a little from my late November update,
modestly lagging the industrial peer group over that very brief time
frame (though Rockwell has also underperformed a bit over the past
year). That hasn't brought the shares to what I'd call an undervalued
level, but I can say that the shares aren't all that more expensive than
many other high-quality industrials these days in terms of prospective
returns.
Read more here:
Rockwell Automation Puts Up A Decent Quarter In A Challenging Macro Environment
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