SIEGY - Rockwell Automation Stands Out On Growth... And Valuation

• Rockwell outperformed its peers in the most recent quarter, with strong growth in discrete and hybrid automation markets and above-average growth in process automation as well.
• Management was an early mover in areas like hybrid automation and has done well in growing markets like semiconductors, logistics, food/beverage, and life sciences.
• The acquisition of Plex was an expensive admission that Rockwell's capabilities in MES weren't up to snuff, and excellence on execution is an absolute must here.
• Rockwell enjoys a valuation that seems out of sync with its growth outlook; while the company looks positioned as a long-term winner in automation, it's not going to run away from the pack.

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