Here's Why the Best Is Yet to Come for Rockwell Automation
The best is yet to come for Rockwell Automation (NYSE: ROK), but unfortunately, so is the worst. The company's revenue is other industrial companies' capital spending, and when the economy turns, the first thing businesses do is cut back on expansionary spending. That's the bad news, but the good news is that Rockwell's underlying long-term growth drivers are still intact, even if 2020 is shaping up to be a very bad year. Let's take a closer look at what's going on and whether the stock is a good value.
As the name suggests, Rockwell is a leader in industrial automation. It services a broad range of customers, but its most important end markets tend to be industries like automotives, food and beverage, and process industries -- in other words, the early adopters of automated manufacturing or processing.
Clearly, the company has three main problems in 2020:
Source Fool.com
