Economies change over time. The U.S. economy is largely driven by consumer spending. Most of the goods that consumers spend money on are made overseas, where labor is cheaper.
But that’s starting to change. A big reason why is automation. Rather than employ factory workers, technology allows for goods to be made with minimal human interaction. That’s making it easier for manufacturers to operate in the high-cost United States.
Companies that play to that trend have years of growth ahead. In the shorter-term, they’re holding up well in a slowing economy.
One such example is Rockwell Automation (ROK). The company just beat on its latest earnings report, thanks to demand for automated technology in the US.
Shares are flat over the past year, but with revenue growing by 18 percent and with earnings up over 300 percent in the past year, the stock could be on track for market-beating returns in the year ahead.
Action to take: Investors may like shares here, and on any pullback. The stock yields 1.7 percent at current prices, and the dividend has a history of being increased over time.
For traders, the April $300 calls can take advantage of the current uptrend in shares. Last going for about $7.50, traders can likely catch a mid-double-digit gain from in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.