An exit from the recently observed accumulation phase to the upside could allow for the assumption that a clear upward trend is re-established with an increase in volatility.
Summary
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● The company is in a robust financial situation considering its net cash and margin position.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● The tendency within the weekly time frame is positive above the technical support level at 116.8 USD
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at USD 139.56.
● Technically, the stock approaches a strong medium-term resistance at USD 139.56.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
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Rockwell Automation, Inc. is one of the world's largest companies that specialize in the manufacturing and marketing of automation and industrial infrastructure control systems. The products are primarily intended for the food processing, automotive, mining, oil, and gas industries. Net sales break down by family of products and services as follows:
- automation and control devices (45.2%): drive systems, variable frequency drives, motor controls, servo drives, servomotors, actuators, microcontrollers, safety, detection, protection systems, etc.;
- automation solutions and systems (31.9%): automation software and hardware platforms, design, visualization, simulation and execution software, human-machine interface devices, industrial computers, computer networks, etc.;
- professional services and value-added solutions (22.9%): consulting, training and maintenance services, on-site and remote assistance, cloud-based connected services, digital automation solutions for the oil, gas and petrochemical industries, etc.
Net sales are distributed geographically as follows: North America (57.7%), Europe/Middle East/Africa (20.7%), Asia/Pacific (15%) and Latin America (6.6%).