3 Robotics Stocks That Could Be Multibaggers in the Making
The robotics sector is rapidly expanding, promising transformative potential across various industries. This article profiles three leading robotics stocks with strong growth prospect. Each is poised to capitalize on the increasing integration of robotics in manufacturing, healthcare and consumer markets.
Robotics technologies are increasingly employed in manufacturing for automation, assembly, and quality control, enhancing productivity and safety. In healthcare, they are integral to performing precise surgeries and managing patient care with minimal invasiveness. Consumer robotics are becoming commonplace in households, performing tasks such as cleaning and security monitoring.
So if you are after a list of robotics stocks with mutlibagger potential, then read on. These companies could be the winners you’ve been looking for.
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iRobot Corporation (IRBT)
Source: Grzegorz Czapski / Shutterstock.com
As a leader in consumer robotics, iRobot Corporation (NASDAQ:IRBT) continues to innovate in home automation. Now might be an ideal time for investors to scoop up shares of this company.
Amazon’s (NASDAQ:AMZN) planned acquisition of iRobot is set to clear without conditions from the European Union, indicating compliance with EU competition policies. This approval suggests a straightforward integration of iRobot’s products into Amazon’s portfolio, potentially expanding its presence in the smart home sector.
IRBT stock seems undervalued given its PS ratio of 1.23 times earnings against a backdrop of a 22.95% potential upside from its current price to the average analyst price target. Despite recent losses, the company’s solid gross margin and a consensus hold rating suggest market sentiment sees potential recovery and growth. Combined with this news from Amazon, it’s one of those robotics stocks to buy for explosive upside potential.
Intuitive Surgical (ISRG)
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A pioneer in robotic-assisted surgery, Intuitive Surgical’s (NASDAQ:ISRG) da Vinci systems are widely used in minimally invasive surgery.
ISRG stock is also showing signs of moving from strength to strength. Its Q3 revenue increased 12% year-over-year (YOY) to $1.76 billion, showcasing sustained demand for its da Vinci Surgical Systems. Those systems, in turn, expanded 13% YOY to 8,285 installations.
However, amid posting its results to the market, ISRG’s stock fell. Competition from companies like Medtronic (NYSE:MDT) and Johnson & Johnson (NYSE:JNJ) is a significant threat. However, Intuitive’s market lead remains, and is forecast to be robust in the future.
Analysts project a 4.31% potential upside in the stock price, reflecting confidence in its continued growth, supported by a predicted 12.93% revenue growth and a 22.02% EPS growth over the next five years.
Rockwell Automation (ROK)
Source: Shutterstock
While not exclusively a robotics company, Rockwell Automation (NYSE:ROK) provides various industries with industrial automation and technology solutions.
Bulls should be feeling good about ROK for its last quarter results. ROK reported a fiscal fourth-quarter net income of $302.9 million, with earnings of $3.64 per share after adjustments, surpassing analysts’ expectations of $3.49 per share. The company’s quarterly revenue was $2.56 billion, exceeding the expected $2.44 billion.
Despite a challenging manufacturing environment, the company forecasts earnings of $12 to $13.50 per share for fiscal 2024. This is not surprising given the company’s history of surpassing its guidance.
With this strong business execution in mind, ROK is therefore one of those robotics stocks that could offer investors multibagger potential.
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.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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