In a welcome move, industrial giant Rockwell Automation (ROK) saw its Relative Strength Rating improve to 72, up from 69 on Thursday. The 72 Rating means Rockwell stock has outperformed 72% of all stocks over the past year. The upgrade comes amid expansion via acquisition moves and strong profit growth.
Top-performing stocks tend to have an RS Rating north of 80 in the early stages of their moves. See if Rockwell Automation can continue to rebound and hit that benchmark.
Rockwell Stock Climbed 160% Since Last Year
On June 25 Rockwell announced it’s buying Plex Systems for $2.2 billion cash. The move expands Rockwell’s footprint in the industrial cloud software market. Its stock fell to 115.38 in late March 2020, and was trading around 300 Thursday afternoon.
CEO Blake Moret comments in a news release that, “This acquisition will accelerate our strategy to bring the Connected Enterprise to life, driving faster time to value for our customers as they increasingly adopt cloud solutions to improve resilience, agility, and sustainability in their operations.”
Rockwell, which says on its web site that it’s a “smart manufacturing industrial automation” company, makes industrial automation control and power systems, as well as information architecture systems.
Among other key ratings, Milwaukee-based Rockwell stock has a strong 91 IBD Composite Rating.
IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
The Milwaukee-based company, founded in 1903, also carries a B- Accumulation/Distribution Rating, on an A+ to E scale, indicating that large funds are moderately buying its shares.
In terms of fundamentals, earnings shot up 75% year over year last quarter, to $2.31. That reversed from a 2% decline in the prior report. Revenue also increased in its most recent quarter, rising 33% to $1.85 billion.
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Rockwell Automation has risen more than 5% past a 275.53 entry in a first-stage flat base, meaning it’s now out of a proper buy range. Look for the stock to create a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week line.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD’s unique rating tracks market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price movement over the last 52 weeks stacks up against all the other stocks in our database.
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