Newsblare

Top 50            Stocks to Buy

Advisor Network Market Overview Science & Technology Stock to Buy Stocks & Funds Technology

Top 3 Robotics Stocks to Buy Now and hold

Top robotics stocks to buy now

Global investors are always on the hunt for promising stocks and experienced investors are more focused on top-down approach. Therefore, they focus more on industry and they tend to narrow down their research to stocks. Experts believe that industrial robotics market share should be able to exceed US$80 billion by 2024. Industrial robotics market should grow at a significant pace, stemming from continued trend of automation throughout several end-use industries. Therefore, global investors are presently optimistic about some of the top robotics stocks.

Robots are being adopted by numerous companies so that repetitive or risky tasks such as deburring, grinding, part inspections, etc. can be performed. Automation with the help of this equipment improves efficiency of several processes, which ranges from raw material handling to packaging of finished product. Adoption of this technology throughout industries has allowed the companies to increase competitiveness on the basis of price, offerings along with business reach. Collectively, these measures are expected to propel the market. Some of top robotics stocks are expected to outpace market growth due to their increased market share, favourable liquidity profile, new product launches, etc. 

Industry 4.0, which is the newest industrial revolution, supported development of new technologies, such as collaborative robots, AI-enabled robots, etc. This has enabled industries to utilise robots to automate several processes, improve efficiency, and eliminate errors. Higher workplace safety and improved production capabilities have forced the companies to invest in robotic systems. As per data from National Bureau of Statistics, production volume growth accelerated from ~237000 units to ~363,000 units, exhibiting over 50% rise in year 2021 in comparison to 2020. 

With this in mind, we will now have a look some of the top robotics stocks to buy now and hold.

Top Robotics Stocks to Buy Now

  • Intuitive Surgical, Inc.
  • NVIDIA Corporation
  • Rockwell Automation, Inc.

1. Intuitive Surgical, Inc.

The company develops, produces, and markets robotic system for helping minimally invasive surgery. It also offers instrumentation, disposable accessories, and warranty services for system.

It has announced financial results for quarter ended June 30, 2023 (2Q23). Worldwide da Vinci procedures went up by ~ 22% in comparison to 2Q22. During 2Q23, the company’s procedure volumes were negatively impacted due to the COVID-19 cases and higher hospitalizations and government interventions which impacted parts of Asia, mainly China. It grew its da Vinci surgical system installed base to 8,042 systems as on 30th June 30, 2023, exhibiting a rise of 13% in comparison to 7,135 as of end of 2Q22. 

Its 2Q23 revenue came in at $1.76 billion grew by 15% in comparison to $1.52 billion in 2Q22. Second quarter 2023 GAAP net income attributable to Intuitive was $421 million, or $1.18 per diluted share, in comparison to $308 million, or $0.85 per diluted share, in 2Q22. 2Q23 instruments and accessories revenue went up by 20% to $1.08 billion in comparison to $0.90 billion in 2Q22. Rise in instruments and accessories revenue was mainly because of ~22% growth in da Vinci procedure volume. The company closed 2Q23 with $7.13 billion in cash, cash equivalents, and investments, exhibiting a rise of $553 million, primarily supported by cash generated from operations, partially offset by capital expenditures. 

Core business of the company was supported by positive surgical trends and continued interest in robotic-assisted surgery in comparison to other surgical approaches. Focus of the company is on supporting customers’ adoption, pursuing expanded indications, delivering strong quality and supply, and higher productivity as the company continues to scale its business.

2. NVIDIA Corporation

The company has been categorised as top designer of discrete graphics processing units which enhance experience on computing platforms.

It saw revenue for 2Q23 of $13.51 billion, exhibiting a rise of ~101% in comparison to year ago and up 88% from previous quarter. GAAP earnings per diluted share for 2Q was $2.48, up 854% from year ago and was up by 202% from previous quarter. Non-GAAP earnings per diluted share came in at $2.70, exhibiting a rise of 429% from a year ago and up 148% from prior quarter.

During 2Q23, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading enterprise IT system and software providers declared partnerships to bring NVIDIA AI to every industry. The company continues to adopt generative AI. During 2Q24, the company returned $3.38 billion to shareholders through 7.5 million shares repurchased for the consideration of $3.28 billion, and cash dividends. As of 2Q23 end, the company had $3.95 billion remaining under share repurchase authorization.

In 3Q24, the company expects its revenue to the tune of $16.00 billion (plus or minus 2%), while GAAP and non-GAAP gross margins are expected to be 71.5% and 72.5%, respectively (plus or minus 50 basis points). Its GAAP and non-GAAP operating expenses are expected to be ~$2.95 billion and $2.00 billion, respectively. 

3. Rockwell Automation, Inc.

The company is a pure-play automation competitor which is the successor entity to Rockwell International, which spun off its Rockwell Collins avionics segment in 2001.

Rockwell Automation, Inc. announced that it has signed a definitive agreement to acquire Ontario, Canada-based Clearpath Robotics Inc., which has been categorised as a leader in autonomous robotics for industrial applications. In 3Q23, the company’s reported sales were up 13.7% year-over-year, with organic sales increasing 13.2% year-over-year. Total ARR of the company grew by 17% year-over-year, with diluted EPS of $3.45 and adjusted EPS of $3.01, both growing by 35% and 13% year-over-year, respectively. 

The company saw a good quarter of double-digit sales and earnings growth, and it saw continued improvement in electronic component availability. In May, the company made a change in its US distribution center which added capacity to support increased revenue in fiscal Q4 and beyond. This transition affected shipments timing within 2H of fiscal year, and its full-year organic sales expectations were unchanged. 

The company has increased its guidance. Reported sales growth is expected in the range of 14.0% – 16.0% and inorganic sales growth is expected to be ~1%. Adjusted EPS of Rockwell Automation, Inc. is anticipated in the range of $11.70 – $12.10. 

Conclusion 

While above are some of the screened renowned and top robotics stocks which investors should consider buying, there are several other stocks operating in robotics industry. Experts believe that robot installs are should surpass significant benchmark by 2024, touching 500,000 installs in single year. 

Read Also:

CEO & Editor
I'm Ved Prakash, Founder & Editor @Newsblare Media, specialised in Business and Finance niches who writes content for reputed publication such as Investing.com, Stockhouse.com, Motley Fool Singapore, etc. I'm the contributor of different... news sites that have widened my views on the current happenings in the world.

3 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *