Monday, March 4, 2013

Why Rockwell Is Poised to Keep Popping

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industrial automation specialist Rockwell Automation (NYSE: ROK  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Rockwell, and see what CAPS investors are saying about the stock right now.

Rockwell facts

Headquarters (founded)

Milwaukee (1928)

Market Cap

$12.3 billion

Industry

Electrical components and equipment

Trailing-12-Month Revenue

$6.3 billion

Management

Chairman/CEO Keith Nosbusch

CFO Theodore Crandall

Return on Equity (average, past 3 years)

38.2%

Cash/Debt

$1.3 billion / $1.2 billion

Dividend Yield

2.1%

Competitors

ABB (NYSE: ABB  )

Emerson Electric (NYSE: EMR  )

Siemens (NYSE: SI  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 88% of the 273 members who have rated Rockwell believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, hend6, tapped Rockwell as a particularly solid opportunity:

Strong income growth over the last few years, and a strong balance sheet as well. Continual buybacks of stock along with their decent dividend yield make this a buy for me. Outperform might be a stretch, but something that should maintain or go up slightly.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Rockwell may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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