Summary:
- Rockwell Automation (NYSE:ROK) rose by 10% on Tuesday, after the company posted earnings that beat Wall Street expectations.
- Based on its market cycles, we see more upside after a near term pullback.
Rockwell Automation (ROK) Stock Weekly Chart
The company reported earnings per share of $2.01 and total revenue of $1.73 billion, compared to analyst estimates of $1.92 and $1.65 billion. Looking forward, management projected FY 2020 earnings of $8.70 to $9.10 per share, versus the $8.52 consensus.
CEO Blake Moret explained that,
“Our outlook balances geopolitical uncertainty with confidence in our portfolio. Global trade tensions continue to create uncertainty and industrial production is decelerating. Yet we are excited about new product introductions across our portfolio.”
Our approach to stock analysis uses market cycles to project price action. ROK is clearly still in the rising phase of its current cycle. However, it is approaching resistance at $210. After a near term pullback, we expect the stock to move higher.
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