Regal Rexnord (RRX)
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-09
$159.61-2.52%
Close 2026-09-09 · 1-day change
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-09
Broken: Primary pillar broken — Revenue growth near 12% in next 12 months: rev +4.2% vs 11.7%.
Regal Rexnord makes electric motors and power products. It aims for $10.6 EPS in 2026. Revenue growth near 12% is expected. The company keeps paying a $0.35 dividend per share.
Profit growth is weak and operating income fell in early 2026. New CEO changes may slow progress. The stock is expensive compared to peers.
The price is about 1% above our fair value near $216. Analysts expect about 12% revenue growth. We see risks in profit growth and cost control.
Breaks if: Dividend per share falls below $0.35
Breaks if: YoY revenue growth falls below 7% next year
Breaks if: EPS falls below $9.5 in fiscal 2026
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on organic sales growth and market expansion. The current thesis state is intact, supported by strong recent financial results despite some mixed management priorities.
The market appears to have a neutral valuation for RRX, suggesting it is priced similarly to its peers. There is a slight expectations gap, indicating that the market may not fully reflect the potential for continued growth.
Fundamentals are likely to remain strong in the near term, with management focused on organic sales growth and maintaining dividends. However, there is an elevated risk due to potential sector headwinds that could impact performance.
The thesis hinges on the performance of sector bellwethers like GEV, PH, and TT. If these companies continue to perform well, it could support RRX's growth. Conversely, any negative guidance from these peers could adversely affect RRX.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read on RRX. However, falling margin guidance threatens operating income and margin resilience.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Operating income falls below $150 million
Overall, RRX's long-term thesis remains supported by its recent performance and management's focus on growth. Not investment advice.