A rundown of the robotics stocks with the most potential for profits this new year.
Probably more than any other growing sector, the robotics industry is set to have the most gains going into 2022. Rising above the initial logistical issues caused by the pandemic, the companies that deal with robotics have implemented a series of marketing strategies that aim to bring their respective innovations into the public limelight. Should their efforts prove to be successful, we can expect to see an explosion of demand for robotics and automation around the 3rd and 4rth quarters of this year.
Based on projections, the global robotics market is set to rise in value from $25 billion in 2023 to nearly $260 billion by 2030. Moreover, the professional service robots will likely be the ones to lead this growth and account for nearly $170 billion. Coinciding with this will be the logistic robots whose sales are expected to rack up to $80 billion in revenue over the period.
The demands associated with the pandemic too have fueled a massive influx of activity around artificial intelligence. The applicability of A.I. in the medical, food, and logistics industries is causing some excitement among investors who are looking to jump on the bandwagon now while prices are relatively cheap and enjoy the massive profits later when they become mainstream.
The Top 10 Robotics Stocks to Buy in 2023
Should you be one of those investors looking to capitalize on a rapidly growing market, then here’s a list of robotics stocks with the most promise this 2022:
1. Fanuc Corporation (OTC: FANUY)
Market Cap: $38.96 Billion
When people think of robotics, a lot of them are likely to think about the manufacturing industries. In this sector of the robotics market, the Fanuc Corporation is blazing a trail. Their main customer as of the moment is China, supplying servo motors, lasers, robots, compact machining centers, and electric injection molding machines, among others.
This has facilitated the company’s improved profit margins and boosted free cash flow generation. Many analysts have begun to take a bullish stance with the stocks of this company, upgrading its rating to Outperform price target of 30,000 yen, indicating it has surpassed all previous projections.
Although most of its potential is still confined to its home nation, investors would be wise to be on the lookout for offshore expansions.
2. iRobot Corporation (NASDAQ: IRBT)
Market Cap: $1.66 Billion
The iRobot Corporation is an American manufacturing company that’s concerned mainly with the production of consumer robotics. Their most notable product is the well-known Roomba vacuum cleaners which are a hit in North America and are now growing in popularity overseas as well. And with the recent integration of Amazon’s Alexa, making them controllable through voice command, the vacuums are likely to continue flying off the shelves.
Though the company is not profitable right now, since it went public in 2005 its share price has gained by 68.99% with the majority of growth occurring from 2017 to 2021. As an investor, the stocks of iRobot serve as a safe bet since it already has products established in the market.
As of January 2022, there are a total of 17 hedge funds with interests in the share. The largest shareholder among these is the Chicago-based investment firm Citadel Investment Group with 217,366 shares worth more than $17 million.
3. Novanta Inc. (NASDAQ: NOVT)
Market Cap: $4.72 Billion
Since the late 1960s, Novanta Inc. has become one of the leading providers of parts and services of original equipment manufacturers. Though it might be too early to tell, the stocks of the company present a good source of long-term investment despite their apparent volatility. A testament to this is the fact that the majority of the company’s shares are held by institutional investors, something that’s unique compared to the other entries on this list. About 15 hedge funds are investing a total of $98 million into the company as of the writing of this article.
In related news, the company had a great 2021 compared to other companies in its categories. It made 2 acquisitions which cost the company around $300 million combined. Both purchases are aimed to expand Novanta’s set of operations to include automation, robotic applications, and intelligent end-of-arm technology solutions for advanced industrial and surgical robots.
Traders are closely observing these developments to see how it translates into growth in the future. Even without it though, the company is still more than a viable investment option with gains of 3.42% over the past 12 months.
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4. ABB Ltd (NYSE: ABB)
Market Cap: $70.99 Billion
ABB Ltd. is a Swedish–Swiss multinational corporation based in Switzerland, dealing mainly in the manufacturing and marketing of robotics, power, heavy electrical equipment, and automation technology areas. Recently, the company has raised its price and sales target, signifying to investors its belief that 2022 will be an exceptionally fruitful year.
They have good reason to believe this since many financial experts have elevated the company’s share ratings from Neutral to Outperform with a price target of CHF 38. To further capitalize on this momentum, the company’s management announced plans to simplify its internal structure by selling off or separately listing several of the company’s non-core businesses.
As of January 2022, there are a total of 19 hedge funds owning shares of the company which amounts to around $721 million.
5. Omnicell, Inc. (NASDAQ: OMCL)
Market Cap: $6.51 Billion
One of the most exciting possibilities people are interested in when it comes to robotics is its application in medicine. Especially now with the pandemic, many companies are doubling down on medical robotics, generating somewhat of an arms race among robotics companies for the latest and greatest innovations.
Omnicell is one such company that’s at the forefront of medical robotics. It provides various automation solutions for the health industry and has spent nearly $200 million to buy and assimilate ReCept and MarkeTouch Media in just the past few weeks. Another proof that the company is a leader in the pharma automation sector, analysts have given the company’s share a rating of Overweight with a price target of $203.
As an investment option, there are currently 20 hedge funds tied to the company’s stocks. The largest of these is the Washington-based investment firm Fisher Asset Management with 239,720 shares worth more than $35 million. The company stocks have gained 21.45% over the past 12 months and 305.53% over the past 5 years. Although the past 6 months have been less than stellar price-wise, this can be attributed to the heavy spending the company has been doing. With the recent expansion, 2022 holds a lot of promise for this company.
6. Rockwell Automation, Inc. (NYSE: ROK)
Market Cap: $33.02 Billion
Thanks to a clean balance sheet and high-quality earnings with a focus on shareholder returns, analysts have given a Buy rating to the stocks of Rockwell Automations with a price target of $390. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs over 23,000 people and has customers in more than 100 countries worldwide. This expansive reach has given the company the resources to spend on innovations which it hopes will open new markets.
Though the company was hit hard during the pandemic – supply chain and logistical issues being the main culprits – it saw a sharp rebound during 2021 with price gains of 14.91% over 12 months. Management believes this will carry forward to 2022, releasing a statement saying it expects sales to grow over $8 billion as supplies improved.
Among the 29 hedge funds investing in the company, London-based investment firm Impax Asset Management is the leading shareholder with 698,555 shares worth more than $205 million.
7. Emerson Electric Co. (NYSE: EMR)
Market Cap: $53.96 Billion
A Fortune 500 company, Emerson Electric has been providing engineering services for industrial, commercial, and consumer markets since 1890. The long history of innovation gives this particular company an edge over other robotics companies in terms of experience and business savvy.
One of the main points of attraction for this company’s stocks is the stellar performance of its dividends. Consistently benefiting income investors for over 6 decades, the current dividend yield for Emerson Electric Co. is 2.15%, the highest of any company on this list.
Although the company has had a rough year-to-date, it’s still in the green when looked at from a 1- to 5-year period. Emerson Electric Co. markets a wide range of robotics and automation products, mostly for industrial clients. Of the 49 hedge funds investing in the company, the New York-based firm Millennium Management is the leading shareholder with 450,706 shares worth more than $42 million.
8. Ambarella, Inc. (NASDAQ: AMBA)
Market Cap: $4.79 Billion
Ambarella, Inc. is a robotics company that focuses primarily on the production of low-powered, high-definition, and Ultra HD video compression, image processing, and computer vision processors. Based in California, the company’s Computer Vision products, and its line of system-on-a-chip solutions rising in demand in the robotics market, have come to be the main drivers of the company’s growth.
This has prompted analysts to give the stocks of Ambarella the Buy rating with a price target of $230. This is due to their belief that the company will see a growth of revenues to more than $1 billion based on estimates for sales of the Computer Vision products. Over the past 6 months alone, the company’s stock prices have gained by 31.49%.
9. Teradyne, Inc. (NASDAQ: TER)
Market Cap: $18.28 Billion
Though not a robotics company per se, Teradyne stands to benefit greatly from the advances in the robotics industry. For instance, the stocks of this company are expected to benefit from the increased spending on 5G technology across the United States over the next few years. This means that the automatic test equipment designer and manufacturer is an ideal investment if you’re only looking to be indirectly exposed to the robotics sector.
Although it had less than a stellar 2021, analysts have given Teradyne stocks a Buy rating with a price target of $170. Another indicator of its viability for profits is the fact that 42 hedge funds are investing in the company with New York-based investment firm, Alkeon Capital Management, leading the pack at 3.9 million shares worth more than $433 million.
10. Intuitive Surgical, Inc. (NASDAQ: ISRG)
Market Cap: $97.09 Billion
With the success of its da Vinci Surgical System, investors are confident in Intuitive Surgical’s ability to deliver profits with its innovations. A creator of various robotic products designed to improve clinical outcomes of patients through minimally invasive surgery, Intuitive Surgical, Inc. is part of the NASDAQ -100 and the S&P 500. Its share prices have gained by 9.28% over the past year and by 248.40% over the last 5 years.
Many analysts assert that 2022 will be a profitable year for the company, citing its balance sheet and free cash flows of the firm being as impressive as they are given the overall situation of the market. Its stocks currently hold a Buy rating with a price target of $425, indicating that a new system launch could be one of the drivers of growth for the firm in the next few months.
Around the end of 2021, 61 hedge funds held stakes worth $3.5 billion in Intuitive Surgical, Inc.
Bottom Line…
And those were the 10 best robotic stocks to invest in this 2022. Although there aren’t any guarantees where the stock market is concerned, the forecasts for this rapidly growing industry are looking quite sunny.
Armed with the right information gotten through rigorous research, the chances of success with your investments grow exponentially. Practicing your due diligence before shelling out funds is always important when trading in the stock market. Doing this already places you miles ahead of other investors.
We certainly hope that this article was helpful in your search for the right robotic stock. Potentials are in no short supply with this sector of the economy and the financial decisions made today with regards to robotics will undoubtedly shape what the future will look like tomorrow. Invest wisely!