While many industrial companies used the third quarter earnings cycle to talk down expectations for 2020, Rockwell Automation’s (ROK) strong beat-and-raise quarter seemed to stoke optimism that the end of this cyclical slowdown is in sight and the company will return to growth relatively soon. As a well-loved name among the industrials, that newfound optimism has launched the shares about 25% from their pre-earnings level.
When I last wrote about Rockwell, I suggested considering the shares if/when they slipped below $150, and they subsequently did for a couple of weeks. If