Rate Hikes Are Back. Here Are 3 Industrial Stocks Built T…

1) Rockwell Automation

Rockwell Automation has a $50 billion market cap and a long history of helping companies automate their operations. It has three divisions: Intelligent devices, software & control, and lifecycle services. Intelligent devices makes automation machinery, such as material-handling and sensing products. Software & control makes the software that works with automation equipment. And the lifecycle services division offers consulting services around automation, from remote monitoring to cybersecurity. It is a one-stop shop for companies seeking to automate their operations.

The company reported organic sales growth of 10% in the fiscal third quarter of 2026, with adjusted earnings rising 40%. In the quarter, the company highlighted strong demand from key areas such as semiconductors, data centers, E-commerce, and warehouse automation, two of which are directly tied to the rapid growth of the artificial intelligence (AI) sector.

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NYSE: ROK

Rockwell Automation

Premium Feature

Moneyball Superscore

78/100

Today’s Change

(0.18%) $0.83

Current Price

$455.18

Key Data Points

Market Cap

$51BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.

Day’s Range

$449.00 – $460.00

52wk Range

$332.71 – $497.36

Volume

714.2K

Avg Vol

749.4K

Gross Margin

49.18%

Dividend Yield

1.21%

The one problem with Rockwell Automation is its price, as it is often afforded a premium valuation. The stock’s price-to-sales and price-to-earnings ratios are above their five-year averages. Value investors probably won’t be interested, but growth investors should still consider a deep dive.

2) Emerson

In recent years, Emerson exited the climate control and consumer segments to focus on automation. Today, it offers a broad range of automation products, including valves, tools, and software. With a $90 billion market cap, it is one of the largest players in the automation space.

In the fiscal third quarter of 2026, underlying sales rose 6%, with adjusted earnings up 13%. The company raised its full-year guidance, highlighting continued strong demand. On the demand front, management called out the United States, India, Japan, and Southeast Asia as strong points. The company’s sales to the semiconductor sector rose 70% year over year, again leaning into the AI sector’s growth.

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NYSE: EMR

Emerson Electric

Premium Feature

Moneyball Superscore

80/100

Today’s Change

(0.45%) $0.72

Current Price

$162.33

Key Data Points

Market Cap

$91BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.

Day’s Range

$160.99 – $164.21

52wk Range

$122.64 – $166.35

Volume

2.1M

Avg Vol

2.6M

Gross Margin

48.67%

Dividend Yield

1.37%

Rockwell Automation, Emerson’s P/S and P/E ratios are above their five-year averages. However, given the investment going into North American manufacturing and, more specifically, AI, growth investors may want to do a deep dive.

3) Honeywell Technologies

With a market cap of around $60 billion, Honeywell Technologies falls between Rockwell Automation and Emerson. It recently completed the spin-off of its aerospace business, Honeywell Aerospace (HONA +0.72%), allowing Honeywell Technologies, the name it adopted ing the spin-off, to focus on its automation operations. Two key areas for the business are industrial automation and building automation, which allows property owners to control their assets from security to heating.

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NASDAQ: HON

Honeywell Technologies

Premium Feature

Moneyball Superscore

68/100

Today’s Change

(0.07%) $0.15

Current Price

$214.14

Key Data Points

Market Cap

$68BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.

Day’s Range

$212.14 – $215.10

52wk Range

$195.77 – $260.15

Volume

1.7M

Avg Vol

3.2M

Gross Margin

37.84%

Dividend Yield

2.07%

Honeywell Technologies’ most recent earnings results still include the aerospace business. However, the Honeywell Technologies business, when broken out separately, benefited from 4% organic sales growth. Orders rose 16%, pushing the stand-alone business’s backlog up to $20 billion. It looks Honeywell Technologies is off to a good start.

Because of the recent spin-off of the aerospace business, it is difficult to place a valuation on Honeywell Technologies at this time. However, given the strong demand for automation, it is ly to be more interesting to growth investors than value investors.

Automation experts help companies money

Bringing this back to the core theme, companies are facing rising costs from inflation and higher interest expenses. They can only raise prices so much before customers push back, which means cost-cutting must be part of the equation as they seek to protect their margins. That, along with other major trends (AI and the reindustrialization of the United States), will help drive demand for automation experts Rockwell Automation, Emerson, and Honeywell Technologies. And, perhaps, for years to come.

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About the Author

Reuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.

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