What Makes Rockwell Automation (ROK) a High-Quality Compounder?

Alpha Wealth Funds, LLC, an investment management company, released its Q3 2025 letter for the “Insiders Fund”. A copy of the letter can be downloaded here. The fund returned 4.96% in September, bringing the YTD returns to 21.37%. This compares to the benchmark, S&P 500 September return of 3.65% and the year-to-date return through September 30, 2025, of 14.83%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Alpha Wealth Insiders Fund highlighted stocks such as Rockwell Automation, Inc. (NYSE:ROK). Rockwell Automation, Inc. (NYSE:ROK) offers industrial automation and digital transformation solutions. The one-month return of Rockwell Automation, Inc. (NYSE:ROK) was -0.91%, and its shares gained 41.60% of their value over the last 52 weeks. On January 2, 2026, Rockwell Automation, Inc. (NYSE:ROK) stock closed at $398.55 per share, with a market capitalization of $44.81 billion.

Alpha Wealth Insiders Fund stated the following regarding Rockwell Automation, Inc. (NYSE:ROK) in its third quarter 2025 investor letter:

Business: Rockwell Automation (NYSE:ROK) is a leading provider of industrial automation and digital transformation solutions. The company operates through three segments: Intelligent Devices, Software & Control, and Lifecycle Services. These segments offer a range of products and services, including control systems, software, and consulting, aimed at enhancing manufacturing efficiency and productivity.

Insider Buying: No buying since CFO Rothee bought 7,273 at $275.11 on 11/12/24. Insiders have stepped up their selling as expected with recent strong stock performance.

Recent News: Rockwell Automation’s recent news reflects a strong push into advanced technologies like AI and digital twins, a focus on cloud-based solutions and cybersecurity, and continued commitment to expanding its product portfolio and global partnerships to drive digital transformation in manufacturing. Raised guidance range to $9.20 – $10.20 per share, up from the previous range of $8.60 – $9.80. This reflects the benefits from cost reduction and margin expansion actions.…” (Click here to read the full text)

Why Rockwell Automation Inc (ROK) Is Plunging In 2025?

Rockwell Automation, Inc. (NYSE:ROK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 51 hedge fund portfolios held Rockwell Automation, Inc. (NYSE:ROK) at the end of the third quarter, up from 49 in the previous quarter. While we acknowledge the risk and potential of Rockwell Automation, Inc. (NYSE:ROK) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Rockwell Automation, Inc. (NYSE:ROK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Rockwell Automation, Inc. (NYSE:ROK) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.