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Stock Analyst Update

Avoid Rockwell until Earnings Show Signs of Life

Declining capital spending hits automation business.


Rockwell (ROK) is a stock to avoid until the sales outlook for the firm's automation business improves.

Today Rockwell joined a growing number of U.S. companies by warning that earnings per share would be about $0.09 lower than expected at $3.55 for fiscal 2000, which ends September 30. The market responded by sending the stock price down 20% by midmorning.

Richard Wilson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.