- Rockwell posted very healthy double-digit growth in its fiscal Q1, as most of its key end-markets are growing at a double-digit rate and companies scramble to build up their automation.
- Further slowing in industrial production would normally be a bad sign for Rockwell, and I do see some risks to guidance and order momentum, but there are some counter-cyclical opportunities.
- Recent manufacturing/supply chain issues have underlined some advantages of automation, offering counter-cyclical growth potential as more companies adopt automation.
- Rockwell isn't quite as richly valued as before, but still not a clear buy.
For further details see:
Rockwell Automation Facing A Slowing Cycle, High Expectations, And Sector Rerating, All While Sporting A Hefty Valuation