Milwaukee, Wisconsin-based Rockwell Automation, Inc. (ROK) provides industrial automation and digital transformation solutions. Valued at a market cap of $36.6 billion, the company designs and delivers control systems, software, and services that help manufacturers across various industries automate their operations and optimize productivity.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and ROK fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the specialty industrial machinery industry. The company’s strength lies in integrating hardware, software, and lifecycle services, creating a seamless “Connected Enterprise” that unifies control systems and real-time data. It is known for its deep domain expertise in industries like automotive, life sciences, and food & beverage, where precision, safety, and efficiency are critical. 

This industrial automation company is currently trading 1.1% below its 52-week high of $328.90, reached on Jun. 10. ROK has rallied 24.1% over the past three months, outpacing the S&P 500 Index’s ($SPX) 8% uptick during the same time frame.

In the longer term, ROK has surged 24% over the past 52 weeks, outperforming SPX’s 11.5% return over the same time frame. Moreover, on a YTD basis, shares of ROK are up 13.8%, compared to SPX’s 2.8% rise. 

To confirm its bullish trend, ROK has been trading above its 200-day and 50-day moving averages since early May. 

On May 7, ROK’s shares soared 11.9% following its stronger-than-expected Q2 earnings release. Although the company’s revenue declined 5.9% year-over-year to $2 billion, it still exceeded analyst expectations by 2%. Similarly, its adjusted earnings per share came in at $2.45, down 2% from the prior year quarter but 17.2% above Wall Street estimates. The dip in revenue and earnings was largely driven by weaker sales in the intelligent devices and lifecycle services segments. However, effective cost-cutting initiatives and margin improvement efforts helped cushion profitability.

Additionally, looking ahead to fiscal 2025, ROK plans to offset current and potential future tariff costs through a combination of strategic pricing adjustments and supply chain optimization. Citing these efforts, the company raised its adjusted EPS guidance and now expects it to range between $9.20 and $10.20.

ROK’s outperformance looks pronounced when compared to its rival, Emerson Electric Co. (EMR), which gained 16.8% over the past 52 weeks and 2.3% on a YTD basis. 

Looking at ROK’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 23 analysts covering it. While the company is currently trading above its mean price target of $321.33, its Street-high price target of $371 represents a 14.1% premium to its current price levels.