The robotics industry is developing at an incredible pace, and the computing power required for these mechatronic devices is getting cheaper every day. The increased computing power and data management capabilities of mechatronic devices allow them to perform new actions that were previously impossible for humans. Robotics are disrupting many industries in healthcare, logistics, and automotive, creating opportunities like never before. Therefore, robotics stocks hold more importance for investors than ever before.
A report suggests that The global robotics market is expected to grow at an annual rate of 22.8% over the next ten years. It will reach $214 billion by 2030 due to increased demand for industrial robots and companies developing their technology.
Changing consumer preferences are driving innovation in the robotics industry. For example, artificial intelligence has greatly improved human-robot interactions with chip advances that allow them to work more efficiently together. The heavy duty use of robotics is growing, increasing the demand for these machines. With that said, let’s take a look at seven of the top needle-movers in the robotics sphere that are worth investing in at current prices.
| way | UiPath | $11.78 |
| IRTC | iRhythm Technologies | $119.69 |
| FANUY | The Fanuc | $13.74 |
| NVDA | Nvidia | $115.86 |
| ISRG | Intuitive Surgical | $185.90 |
| TER | Teradyne | $74.02 |
| IPGP | IPG Photonics | $84.78 |
UiPath (PATH)
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UiPath (NYSE:way) provides robotic process automation (or RPA) services that can be effectively integrated into a company’s software infrastructure to perform tedious tasks such as invoice processing, customer onboarding, and entering heap of data. It is the leader in this niche market, which is expected to grow at a compound annual growth rate (or CAGR) of 38.2% from 2022 to 2030.
The company’s growth rates have slowed due to the current macroeconomic climate. However, top-line growth is likely to improve significantly in a more favorable environment, while the company’s gross margin remains in the mid- to high-80s. Strong margins give it a lot of pricing power. In addition, it has $1.72 billion in cash, so it can continue to expand and invest in its business to generate more profits by the end of the decade.
iRythm Technologies (IRTC)
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iRhythm Technologies (NASDAQ:IRTC) operates a medical device business known for the popular Zio heart rate monitor. It is an advanced cardiac monitoring system that makes remote monitoring and data collection much easier than existing technologies. The company claims that its device allows health care professionals to use large amounts of data to improve health care outcomes for heart patients.
The past two quarters have been encouraging for business after the collapse in last year’s fourth quarter. It can continue to grow its top line by double-digit margins in the future if it effectively integrates telehealth and cloud health-to cardiovascular. In addition, it plans to release other products, such as the Zio Watch, and improve its existing products and services to increase its market share. Its stock is currently down 40% from a peak of $250, providing a unique entry point for long-term investors. Therefore, I believe this is one of the best robotic stocks to buy.
The Fanuc (FANUY)
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The Fanuc (OTCMKTS:FANUY) is a Japanese industrial robotics giant with manufacturing facilities spread across the US, China, and Japan. Its products are used for many purposes, and it boasts a diverse revenue base that generates nearly 50% of its revenues from its home country and China. Both markets are two of the leading players in the large industrial robotics space. Operating income from the robotics sector in China is estimated to grow at an average of 20% from 2021 to 2025.
Fanuc has been consistently profitable and has grown its top line at a healthy 8% average over the past five years. In addition, EBITDA growth averaged a remarkable 11% over the same period. With massive growth expected in its core markets over the next few years, FANUY is positioned to capitalize on the boom. On top of that, it offers a solid dividend yield of over 2.5%.
Nvidia (NVDA)
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Nvidia (NASDAQ:NVDA) is not a robotics pure-play but, judging from the recent development, it may play a big role in expanding its income in the future. Robotics is very important to the company’s Jetson chip line. Jetson is equipped with AI and machine learning software that offers many use cases in industries such as autonomous cars, robotics, and more.
In addition, the chip giant recently revealed at its GPY Technology conference that many start-ups are using its cutting-edge new AI platform, Orin IGX. The platform is used by more than 70 medical device specialists seeking to accelerate the development of robotic surgery systems. Given its rapid growth of late, NVDA could give Intuitive Surgical and other leading players in the robotics-assisted surgery market a run for their money. Thus, making it one of the top robotic stocks to buy.
Intuitive Surgical (ISRG)
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Featured as one of the top robotic stocks to buy, Intuitive Surgical (NASDAQ:ISRG) has established itself as the market leader in robotic surgical instruments. Its tools allow doctors to perform minimally invasive operations, which lead to better results. ISRG is a strong performer in the space, generating more than 16% top-line growth over the past five years. Despite the impressive performance, in 2021, only 3% of operations were performed robotically.
Its competitive advantage comes from its large patent base, which totaled 4,200 at the end of last year. In addition, Da Vinci surgical systems have high transfer costs. Training medical personnel to operate the machinery takes time, and healthcare facilities are unlikely to let the investment go to waste by choosing another platform. At the end of the second quarter, the Da Vinci systems has an installed base of 7,135, which represents a 13% bump from last year’s period. Most of these customers should stay put.
Teradyne (TER)
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Teradyne (NASDAQ:TER) is a dominant player in the semiconductor testing equipment and automation solutions design businesses. In addition, it layers its hardware stack with a robust software stack, enabling customers to maximize production capacity. As the robotics sector grows, the demand for TER testing equipment and services will also grow rapidly.
Last year’s operating results were impressive, with the company posting double-digit gains on both its top and bottom lines. It is in a strong position to continue pushing forward, especially in its industrial automation wing, which is expected to grow at a staggering 40% annually until 2024. Hence, the demand for Its products remain stable for a long time despite its temporary collapse. now finds itself in the.
IPG Photonics (IPGP)
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IPG Photonics (NASDAQ:IPGP) manufactures high-end lasers. It produces medium, long, pulsed, and green-pulsed layers. Green-pulsed lasers, in particular, play a key role in the production of batteries and electric vehicles. Therefore, it operates in a large market, and its continued investment will ensure that it maintains its dominant position in the premium, high-margin laser space.
It has grown its top and bottom lines by single-digit margins and has the potential to do even better once it overcomes current market headwinds. In addition, it is looking to reduce its exposure to China, which is the main driver of growth. It seeks to reduce its dependence and sees growth in the space. Non-Chinese sales accounted for 64% of its total revenue in its second quarter, up from 57% last year. Diversifying its income base will help reduce the risks associated with its stock and help make up for the gains it lost last year. Therefore, it represents one of the robotic stocks to buy.
As of the date of publication, Muslim Farooque does not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.
