Rockwell Automation: Narratives Don't Match Numbers (Archive)

Rockwell’s valuations look stretched while manufacturing data and stubborn lead times tell another story.

Rockwell Automation: Narratives Don't Match Numbers (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

  • Industrial automation is a mega-trend but if you invest purely on this logic, you are prone to suffering gut-wrenching drawdowns.
  • The market is bullish on supportive manufacturing policies.
  • But leading indicators suggest a slowdown in manufacturing activity.
  • Rockwell's product lead times remain elevated contrary to easing supply chain narratives.
  • The stock is very expensive.

Read the full article here.

Disclosures and Disclaimers

Past performance ≠ future results. Not investment advice. See full Disclaimer.