12 Best Robotics Stocks To Buy Now
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In this piece, we will take a look at the 12 best robotics stocks to buy now. If you want to skip our analysis of the robotics industry, how it is gradually affecting several walks of life, and want to skip ahead to the top five stocks on this list, then take a look at 5 Best Robotics Stocks To Buy Now.
One trend that is slowly taking over the industrial world and making slow inroads into consumer use as well, is the growing use of robotics. Their utility, particularly in heavy duty industrial manufacturing and tasks that are often hazardous to humans has created new opportunities for growth and cost efficiencies.
In fact, as the world was reeling from the effects of the coronavirus pandemic, the use of robotics in industries actually grew. Data from the International Federation of Robotics (IFR) shows that when it came to the food and beverages industry, the use of robotics grew by 25% in 2021 to sit at 3,402 units as they provided a handy way of continuing business and adhering to social distancing requirements at the same time. And while the use of robots in the food industry was in the thousands, as a whole, more than half a million robots are deployed across various industries such as chemicals, automobile manufacturing, and plastic production. These sectors often carry hazards to human health, as they require handling dangerous materials, heavy equipment, or conducting repetitive tasks.
The growth in the use of robotics is part of a growing trend toward automation that provides firms with an opportunity to streamline their operations and reduce worker costs. According to McKinsey, automation can boost global productivity by as much as 1.4% each year and it could even cut paid positions in half. The nature of its products, which are heavy machines that require significant manual labor otherwise, has also led to the automotive industry being one of the biggest users of robotics by accounting for 29% of global automation demand as of 2022.
Building on this, the global robotics industry was worth $27 billion in 2020 and is slated to grow at a compounded annual growth rate (CAGR) of 17.45% to be worth $74 billion by 2027. As should be expected, automotive production and industrialization will play a key role in this market. Some of the top industrial robotics companies in the world are Stellantis N.V. (NYSE:STLA), ABB Ltd (OTCMKTS:ABBNY), and DENSO Corporation (OTCMKTS:DNZOY), and for more details on this highly lucrative robotics niche, you can check out Top 10 Industrial Robotics Companies in the World.
Taking a deeper look at what some of these firms are doing, ABB Ltd (OTCMKTS:ABBNY), one of the most proactive robotics firms in the world, is right at the top of its game as it has already started to consider how to bring artificial intelligence to industrial robotics. The firm has partnered up with Microsoft Corporation (NASDAQ:MSFT) to integrate AI into industrial processes for reducing machine downtime and increasing equipment lifespans. It will also allow decision makers to consolidate operational data with their decision making processes to provide better insights.
Another highly consequential robotics firm, particularly when it comes to healthcare use is Intuitive Surgical, Inc. (NASDAQ:ISRG). Its robots, as the name suggests, aid surgeons conduct some of the most difficult tasks in the world. And on this front, Intuitive scored a big win earlier this year when the Food and Drug Administration (FDA) cleared its da Vinci surgical system for use in simple prostate surgery where doctors remove portions of an enlarged prostate to ensure smooth urinal flow. The system was also approved for a prostate surgery procedure where the entire gland is removed, often for patients that have prostate cancer. And while these are established companies with a large operations base, newer and younger companies are also entering the industry.
One such firm is Nauticus Robotics, Inc. (NASDAQ:KITT) which went public through a special purpose acquisition company (SPAC) in 2021 in a $150 million initial public offering. The IPO was one of many during a time when SPACs were quite popular with retail investors, who flocked to them in droves due to the potential for share price appreciation. Nauticus is an interesting robotics firm, with a business model that is called robotics as a service (RaaS). This allows firms to use robots on a subscription basis, enabling them to save up on capital expenditures and utilize cost savings and efficiencies at the same time. However, the very expectation of a high return through an IPO also led to the shares of Nauticus' SPAC firm Cleantech tanking by 35% when shareholders approved the IPO since it also disclosed that roughly 1.4 million shares would be available for trading while retail investors had believed the float would be lower.
As to what's happening in the robotics industry right now, here's what the management of Rockwell Automation, Inc. (NYSE:ROK) had to say during the firm's first quarter of 2023 earnings conference:
One of our large multiyear wins in eCommerce this quarter was with CMC, a leader in smart solutions for sustainable packaging. Rockwell’s smart machine architecture, which includes our full portfolio of hardware and software, will help CMC produce its innovative on-demand packaging at scale. Another important win in the quarter was with Phononic, a technology company focused on unique heating and cooling systems. This customer is working with our Kalypso team to create the cloud and IoT infrastructure necessary to support Phononic’s disruptive design for cold chain solutions and warehouse applications. Moving to our Hybrid industry segment. Sales in this segment grew low teens year-over-year, led by strong growth in food and beverage. Food and beverage sales were up over 15% versus prior year.
With these details in mind, let's take a look at some top robotics stocks, out of which the notable names are Tesla, Inc. (NASDAQ:TSLA), Thermo Fisher Scientific Inc. (NYSE:TMO), and Intuitive Surgical, Inc. (NASDAQ:ISRG).
Photo by Possessed Photography on Unsplash
Our Methodology
To compile our list of the best robotics stocks, we first made a list of all robotics companies operating in industrial, healthcare, software (yes there are software robots, as part of robotic process automation systems), and other domains. Then, the number of hedge funds that had invested in them during this year's first quarter was determined through Insider Monkey's database of 943 hedge funds. The top twelve best robotics stocks to buy based on hedge fund interest is as follows.
12 Best Robotics Stocks To Buy Now
12. Zebra Technologies Corporation (NASDAQ:ZBRA)
Number of Investors In Q1 2023: 26
Zebra Technologies Corporation (NASDAQ:ZBRA) is a communications equipment firm that also provides robotic automation products. Its average share price target is $322, pointing at a significant upside over the current price of $295.
As of March 2023, 26 of the 943 hedge funds profiled by Insider Monkey for their investments had bought the firm's shares. John W. Rogers' Ariel Investments is Zebra Technologies Corporation (NASDAQ:ZBRA)'s biggest shareholder through a $151 million stake.
Zebra Technologies Corporation (NASDAQ:ZBRA) joins Thermo Fisher Scientific Inc. (NYSE:TMO), Tesla, Inc. (NASDAQ:TSLA), and Intuitive Surgical, Inc. (NASDAQ:ISRG) in our list of top robotics stocks.
11. Helix Energy Solutions Group, Inc. (NYSE:HLX)
Number of Investors In Q1 2023: 26
Helix Energy Solutions Group, Inc. (NYSE:HLX) is an oil and gas equipment company that provides a variety of robotics products to its customers. It is one of the few stocks on our list that is rated a Strong Buy on average.
26 of the 943 hedge funds part of Insider Monkey's database had held a stake in Helix Energy Solutions Group, Inc. (NYSE:HLX) during Q1 2023. The firm's largest hedge fund investor is Israel Englander's Millennium Management owning 5.1 million shares that are worth $39.5 million.
10. Ambarella, Inc. (NASDAQ:AMBA)
Number of Investors In Q1 2023: 27
Ambarella, Inc. (NASDAQ:AMBA) is a semiconductor firm that designs and sells image processing chips that are used in autonomous driving systems and industrial robots. The average share price target for the firm is $91.89 while its shares are currently trading around $85.
Insider Monkey took a look at 943 hedge funds for their March quarter of 2023 investments to find out that 27 had bought and invested in the company's shares. Out of these, Ambarella, Inc. (NASDAQ:AMBA)'s biggest shareholder is Israel Englander's Millennium Management with a $112 million stake.
9. Teradyne, Inc. (NASDAQ:TER)
Number of Investors In Q1 2023: 33
Teradyne, Inc. (NASDAQ:TER) offers automated test equipment for industrial use and semiconductor fabrication. The firm declared an 11 cent dividend in May 2023 and most analysts covering its stock have rated it Buy or higher.
By the end of this year's first quarter, 33 of the 943 hedge funds part of Insider Monkey's database had bought a stake in Teradyne, Inc. (NASDAQ:TER). The firm's biggest shareholder out of these is Israel Englander's Millennium Management with a $176 million investment.
8. Rockwell Automation, Inc. (NYSE:ROK)
Number of Investors In Q1 2023: 34
Rockwell Automation, Inc. (NYSE:ROK) makes and sells automation hardware and software products. The firm announced in June 2023 that it had teamed up with a fishing farm to improve its sustainable fishing operations.
34 of the 943 hedge funds polled by Insider Monkey for their first quarter of 2023 shareholdings had invested in the firm. Ian Simm's Impax Asset Management is the biggest investor in our database, owning 500,067 shares worth $146 million.
7. AMETEK, Inc. (NYSE:AME)
Number of Investors In Q1 2023: 36
AMETEK, Inc. (NYSE:AME) is an industrial equipment company that sells products such as instruments and connectors to the automation industry. The firm expanded its operations in May when it acquired another company that also makes automation products.
After digging through 943 hedge funds for their Q1 2023 investments, Insider Monkey discovered that 36 had bought AMETEK, Inc. (NYSE:AME)'s shares. Out of these, the firm's largest shareholder is Dmitry Balyasny's Balyasny Asset Management with a $148 million stake.
6. UiPath Inc. (NYSE:PATH)
Number of Investors In Q1 2023: 36
UiPath Inc. (NYSE:PATH) operates on the software side of robots. Its software enables firms to automate their process and generate insights by gathering data. It announced a new set of automation features powered by artificial intelligence in June 2023.
As of March 2023, 36 of the 943 hedge funds part of Insider Monkey's database had a stake in the firm. Catherine D. Wood's ARK Investment Management is UiPath Inc. (NYSE:PATH)'s biggest investor, owning $788 million worth of shares.
Tesla, Inc. (NASDAQ:TSLA), UiPath Inc. (NYSE:PATH), Thermo Fisher Scientific Inc. (NYSE:TMO), and Intuitive Surgical, Inc. (NASDAQ:ISRG) are some of the best robotics stocks popular with hedge funds.
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Disclosure: None. 12 Best Robotics Stocks To Buy Now is originally published on Insider Monkey.