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Rockwell Automation (ROK) & Bravo to Offer Battery Solutions

·4 min read

Rockwell Automation, Inc. ROK is teaming up with Bravo Motor Company to provide forefront solutions for the batteries and electric vehicle manufacturers in the Brazilian market.

California-based Bravo Motor offers applied innovation in decarbonization for the production of batteries, vehicles and energy storage systems.

This alliance will aid Rockwell Automation in ramping up the first Giga Factory project in Latin America based on digitalization, comprising production optimization, integrated management and sustainability.

Additionally, ROK will provide modern digital solutions for maximizing results and enhanced Time to Market, with optimization, simulation and augmented reality technologies combined with engineering and manufacturing. This partnership aligns well with Rockwell Automation’s goal of nurturing innovation, sustainability practices and ESG initiatives in Brazil.

Rockwell Automation is heavily investing in the automotive market as it is one of the company’s major industries. Demand for batteries is rising on the higher need for electrification. Backed by rising demand for ESG and sustainability, ROK uses its products as operational efficiency and productivity tools to ensure the least consumption and energy efficiency.

Bravo is offering the latest and evolving technology with the production of batteries, which will be utilized by electric vehicles and energy storage systems. Through ROK’s modern solutions, Bravo will be able to make the factories’ operations faster and ahead of the market.

Rockwell Automation has been witnessing robust demand for core automation and digital transformation solutions. Huge capital investments across many end markets coupled with higher automation and digital transformation will continue to support solid order levels across all segments. The company expects orders in fiscal 2022 to likely reach $10 billion.

Adjusted earnings per share guidance for fiscal 2022 is expected to be $9.20-$9.80, suggesting year-over-year growth of 1% at the mid-point. Rockwell Automation expects total sales of around $7.8 billion to $8 billion in fiscal 2022, with expected sales growth of 11% to 15%. Organic sales growth is projected at 10-14% for fiscal 2022.

Given strong order wins from software and infrastructure services, Rockwell Automation continues to expect double-digit growth in both Core Automation and Information Solutions and Connected Services in fiscal 2022. It is poised to benefit from broadening the portfolio of hardware and software products, solutions and services while gaining traction from investments in the cloud. The company’s Intelligent devices continue to gain from significant strength across the automation portfolio and share gains in the Independent Cart Technology. Orders for auto and e-commerce remain very strong with robust growth in its Independent Cart Technology for motion control and battery applications.

Price Performance

Rockwell Automation’s shares have lost 43.5% in the past six months compared with the industry’s decline of 42.3%.

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Zacks Investment Research

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Zacks Rank & Stocks to Consider

Rockwell Automation currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Industrial Products sector are Graphic Packaging Holding Company GPK, Myers Industries MYE and Titan International TWI, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.

Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 8% in the past six months.

Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.

MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have increased 25% over the last six months.

Titan International has an estimated earnings growth rate of 112% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 55%.

Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have soared 46.7% in six months.

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Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
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Myers Industries, Inc. (MYE) : Free Stock Analysis Report
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