Industrial Stocks You Can Buy

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Industrial Stocks You Can Buy

Two Industrial Stocks You Can Buy

The Federal Reserve is in no mood to lower rates. In fact, the US central bank has started to raise rates instead. The bond yields are now also at record highs because of the rate hike anticipation.

In such an environment, companies try to cut costs and raise prices to protect their margins. Automation is one of the things that helps cut costs and improve efficiency.

With that in mind, there are two industrial stocks that focus on automation. These are Emerson (EMR) and Rockwell Automation (ROK).

Rockwell Automation

Rockwell Automation helps companies to automate their operations. It has a market cap of around $50 billion. The company has multiple divisions that cover different things. This includes software and control, intelligent devices, and lifecycle services.

The intelligent devices division is all about automation machinery. This includes sensing, material handling, and similar types of products.

Software and control includes the software that is used for the automation equipment. The lifecycle services include cybersecurity, consultation, remote monitoring, and similar services. Overall, Rockwell Automation provides a one-stop solution for companies seeking automation services.

The Q3 FY2026 data shows organic sales growth was 10% while the adjusted earnings growth was 40%. The company saw strong demand from areas like data centers, semiconductors, and warehouse automation.

The Rockwell Automation stock looks a little expensive in terms of its historical P/E and P/S ratios. However, you can still consider buying Rockwell Automation stock if you think the automation demand will stay high.

Emerson

Another stock worth considering is Emerson. It has a number of automation products that include tools, valves, and so on.

The market cap of Emerson is $90 billion, which makes it an even bigger player than Rockwell Automation. The Q3 FY2026 data shows adjusted earnings have grown by 13%, and sales are up by 6%.

Emerson also highlighted that demand from Japan, the USA, and the Southeast Asian market remains high. Sales from just the semiconductor sector are up by 70% y/y.

However, the P/E ratio of Emerson stock is a little higher than its 5-year average. But that's a price you will have to pay if you want to invest in a company like Emerson.

The growth remains strong and will only rise as more companies opt for automation solutions. So, if you want to capitalize on automation, you can consider buying Emerson stock.

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