Rockwell Automation Inc. (ROK)

You could buy some here ~$400, your next stop is ~$383, and a third part at $363. Popped so much because it's now the second-largest robotics manufacturer in the world. Once it secures a customer, costs to switch out are very high.

Is an attractive sector, which she owns, because automation keeps growing. ROK is a leading player. A fine, long-term hold.

Is +23% in the last 3 months. Last year was rough with -20% earnings, but last February they reported in-line sales and a big earnings beat. Last May, they reported another revenue beat and earnings beat. Also, they maintained their full-year sales outlook and raised their FY earnings forecast. Tariffs are not all good for ROK; some customers in cars are delaying plans (makes sense), and ROK must pay tariffs on cell phones and components. But if we see a huge wave of re-shoring to the US, ROK will be a winner.

Really likes. Investors should have 5-10% of a portfolio devoted to robotics.

More on the hardware side in the robotics ecosystem. 12-month price target of $286. Massive on the programmable-logic controller side of robotics. Big supplier to ABB and other robotic hardware companies that do the mechanics. Hardware + software, and even security. 

February earnings beat on top and bottom, raised guidance. Only downside is margins are a bit skinny. Yield is 2.11%

Sideways. 17-18% drop at end of January, small recovery, but now in very tight trading range of $268-290. Support around $260, resistance around $300. Don't buy now. If you own, make a trading/exit/reduce plan and follow it.

He is bullish on the industrial sector and new manufacturing will need clean energy. He prefers Eton Corp (ETM) over Rockwell in this space, Eton supplies electrical equipment for automation and precision manufacturing.

Their last quarter was a miss and shares have fallen a lot. It's bottoming. Before buying though wait till the next quarter. 

ROK operates as a provider of industrial automation solutions and is now trading at 24x times' Forward P/E. In the 2Q, ROK’s revenue grew 13.7% to $2.24B, missing estimates of $2.34B and EPS was $3.01 missing estimates of $3.19. Although the result was a miss for both the top and bottom lines, the company also updated a better outlook of double-digit growth (around 15%) for FY2023. The balance sheet is strong, with net debt of $3.6B and net debt/EBITDA is 1.9x. In the last five years, the company consistently grew its topline in the range of single-digit(except in 2020 due to the pandemic), gradually raising dividends and share repurchases over the years, which we like. The valuation multiple is also attractive relative to historical averages in the last five years (ranging from 20x to 33x). We are okay to enter the name at this level on recent weakness. 
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Shares are dipping now, but in mid/late August he expects a rally to new highs. This is based on ROK's historical patterns.

Highest quality company in industrial automation. AI will bring a whole plethora of opportunities. Great companies hit new highs and then go higher. You're just fine holding.

It has lagged but is in a good trend. You could buy above $300 or at $270. Whether you wait to buy depends on whether you are a long term investor. Industrials are doing better.

Global supply chain disruption has made American companies invest more in domestic production, which helps automation companies like ROK. Automation helps American companies compete with cheap overseas labour. ROK had a great quarter yesterday with 27% organic growth and raised full-year forecast. Down 20% from 2021 highs, so there's room to run.

Its Fair market value is 30% less than the price today. He added a general comment: the downside risk of stocks trading above FMV is greater in a bear market.