Robotics stocks are a good investment as the industry is rapidly progressing.
Robotics stocks have great potential to increase their revenues in the future due to the increased usage of robots in different industries due to technological developments. As a result of the growing need for automation solutions, the firms operating in this area may prove to be good investment targets.
AI and machine learning technologies are propelling robotic systems. These technologies allow robots to work with better precision and clarity than humans.
Although robotics stocks may be speculative in the future, investing in them could significantly improve the growth potential of one’s overall portfolio. What’s better is that one can choose from pure-play robotics stocks or invest in companies that use robotics as an additional catalyst, which may help reduce downside risks.
So here are seven robotics stocks for investors to consider to aggressively grow a portfolio.
UiPath (PATH)
UiPath (NYSE:PATH) specializes in robotic process automation (RPA).
I am quite optimistic about UiPath because the company has outstanding technical potential that makes it one of the leading players in enterprise automation. UiPath’s principal competitive advantage is AI integration, which it does through its own DocPath technology. DocPath’s document processing abilities are claimed to be superior to generative AI models, with error rates that are 45% to 76% lower, which will be a major advantage when it comes to handling unstructured data, a key problem area.
From my perspective, UiPath is expected to deepen its automation capabilities in the near future, which may allow it to automate the entire process with the help of natural language processing for the execution of the workflow. Due to the company’s technological leadership, I am quite bullish on the company’s future in this high-growth market.
Meanwhile, Wall Street analysts continue to favor PATH, as the company is expected to achieve double-digit EPS increases.
Rhythm Technologies (IRTC)
iRhythm Technologies (NASDAQ:IRTC) focuses on wearable biosensing technology.
Specifically, the company offers highly effective cardiac monitoring devices incorporating artificial intelligence and machine learning to identify arrhythmia. The Zio monitors, iRhythm’s main product, are favored in the ambulatory cardiac monitoring segment due to the enhanced diagnostic capability over the Holter monitors.
In addition, iRhythm’s AI analytics are superior at identifying a vast number of heart rhythms. This is due to the company’s technology-driven product portfolio, which makes it one of the key players in facilitating the change from traditional and less efficient methods of cardiac monitoring to more patient-friendly styles.
Like some of the other robotics stocks to buy on this list, IRTC is also a company worth considering. Analysts rate it as a strong buy, and there is also an implied upside of over 29% at the time of writing.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is a leader in robotic-assisted surgical systems. This is why I think It is a great stock to own, as it is changing the way medical professionals perform surgery.
Intuitive’s da Vinci robots remain the most widely used robotic systems for surgery. They are characterized by high accuracy, flexibility, and visualization of the surgical field for the surgeon. This is seen in the company’s development of the new da Vinci 5 system, proving that the company is determined to lead in this fast-developing field.
With more patients benefiting from robotic surgeries, Intuitive Surgical will be the main winner due to its leadership and product plan.
ISRG has an entrenched advantage given the high startup, maintenance and switching costs for robotic surgery devices. I expect that ISRG’s market dominance will persist and its machines will remain inside hospitals.
ABB (ABBNY)
ABB (OTCMKTS:AABNY) is a global leader in industrial automation and robotics. Its products are relevant to key trends such as power grid transformation and the integration of renewables. The company’s medium-voltage switchgear, industrial robots, and motion control systems are indispensable in refurbishing dilapidated structures, increasing industrial production capacity, and improving the efficiency and conservation of electricity.
ABB’s recent partnership with Microsoft (NASDAQ:MSFT) is aimed at integrating generative AI into the company’s industrial software and analytics. The effort is another example of how the company uses new technologies to augment the value of its primary products.
One thing I love about ABB is that it’s one of the more established robotics stocks that investors can consider. It has a market cap of around $102 billion at the time of writing. However, it still trades at a reasonable forward earnings valuation at just 22x.
Teradyne (TER)
Teradyne (NASDAQ:TER) is known for its semiconductor testing equipment. Semiconductors, in general, are high-growth areas, but when combined with robotics, I think you are left with a growth powerhouse. Therefore, I do believe that Teradyne has a very bright future.
Also, TER’s cooperation with Nvidia (NASDAQ:NVDA) for AI and computer vision implementations in robotic systems shows the company’s willingness to synergize its expertise with other industry leaders.
Because semiconductor devices’ complexity continuously increases and automation systems need to be improved and diversified, Teradyne’s wide product portfolio and deep knowledge of the subject benefit its clients. This may help long-term retention and fortify the scaling of its earnings and revenue.
TER also benefits from some of the most aggressive EPS forecasts from analysts on this list, with it expected to grow in the low- to mid-double digits over the next few years. This then positions it as one of those robotics stocks for investors to consider.
iRobot Corporation (IRBT)
iRobot (NASDAQ:IRBT) is famous for its Roomba vacuum cleaners.
IRBT has immense unexplored opportunities from its many connected devices in people’s homes. The Roomba brand in robotic home care has been around for quite some time now and is still innovating on its core features.
Also, the large market penetration of Roomba products can be viewed as an opportunity to generate revenue from the accumulated data on sensors and usage statistics that can be provided to third parties under the license or through cooperation. Roomba had around a 46% stake in the global robotic vacuum cleaner market share in 2020. Despite losing market share in the last several years, iRobot retains its first-mover advantage, forming a powerful protective moat.
Thus, as the smart home ecosystem develops, the company’s capacity to connect its products with new home automation systems is a promising prospect, and is a key reason I believe it’s one of those robotics stocks to buy.
Boston Scientific (BSX)
Boston Scientific (NYSE:BSX) is a major player in the medical device field. Robotic surgery stocks generally have their own sphere of expertise. For BSX, it’s creating robots to treat complex cardiac conditions.
Boston Scientific products incorporate AI and robotic systems to provide better patient care and improve providers’ work processes. The company’s robust deal pipeline and history of successful acquisitions, including the forthcoming Axonics (NASDAQ:AXNX) acquisition, put it in a good position to diversify and grow its business.
The company’s robust pipeline and history of effective acquisitions allow it to expand on its current offerings and venture into new high-growth markets. With the advancement of minimally invasive and technologically advanced solutions in the medical field, Boston Scientific’s innovative products make it a viable investment.
One growth angle for BSX is the rise of ambulatory surgery centers (ASCs) in the U.S., which are alternatives to hospitals. This will allow it to compete with entrenched competitors in the space, such as ISRG, and will allow it to grow and maintain market share.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor held a LONG position in NVDA.