Rockwell Automation, Inc. (NYSE:ROK) is one of the 16 stocks Jim Cramer recently discussed. The company was discussed during the episode, and here’s what Mad Money’s host had to say:
“So if you want a manufacturer, you know what you gotta do? You gotta embrace automation, which brings me to Rockwell Automation, the leading industrial automation, digital transformation company. Now these guys make equipment and software that allows factories to run with fewer workers. That’s exactly what we’re going to need if we’re going to have domestic manufacturing make a comeback… Crucially, when the company reported that last quarter, about a month ago, Rockwell maintained its full-year sales outlook, and it raised its full-year earnings forecast really significantly.
Originally, management was guiding for $8.60 to $8.90 in adjusted earnings per share. Now they’re saying it’s more going to be more like $9.20 to $10.20 worth of earnings. That is much, much better than Wall Street’s looking for. I’m not used to seeing those kinds of blowouts. So, putting it all together, things are playing out pretty much like Blake Moret said they would when he came on the show last November. Sales have improved, and it sounds like he was right about Rockwell being able to lower its cost base, which has translated to some tremendous earnings numbers…
Still, generally speaking, if we see a huge wave of reshoring, thanks to this one, wow, it’s going to be a winner… Slowly, Rockwell Automation is building back what I regard as being some aberration on Wall Street… At the end of the day, while I still have some scar tissue from this one after multiple failures over the past years, I see enough good things happening here to justify going forward. I think it’s a good one.
Here’s the bottom line: Big picture, Rockwell Automation, it’s a winner from tariffs that force companies to move their manufacturing back to the United States. Matter of fact, it’s the way to play reshoring without losing a fortune. These companies have to rely on Rockwell Automation. But I would not stick my neck out for the thesis if the fundamentals weren’t already on the mend. Fortunately, Rockwell’s going in the right direction, and this trade war, I’m calling simply the icing on the cake.”
A technician in a factory setting next to an industrial automation machine.
Rockwell Automation (NYSE:ROK) delivers industrial automation and digital transformation products. The company provides hardware, software, and services such as control, safety, motion, sensing equipment, consulting, and maintenance.
While we acknowledge the potential of ROK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None.
Hedge Fund Resource Center