3 Robotics Stocks That Should Be on Every Investor’s Radar This Fall
While the capital markets buzz with possibilities, few sectors incite as much excitement as top robotics stocks. Automation, innovation and the tantalizing promise of ushering in a new era of productivity have fueled much of this fervor. However, is this enthusiasm more than just a flight of fancy?
Consider the cold, hard facts. Data from Precedence Research paints a tantalizing picture of the road ahead. In 2022, the robotics technology market secured a robust valuation of $72.17 billion. If that doesn’t impress you, consider the trajectory. Analysts forecast that by 2032, this figure will swell to an astonishing $283.19 billion. This implies a compound annual growth rate (CAGR) of a healthy 14.7%.
Yet, it’s more than just dollars and cents that makes the case for robotics. The macroeconomic implications are profound. Robots, with their tireless work ethic—absent the need for breaks, holidays, or personal days—can revolutionize our workspaces. Humans, liberated from manual tasks, can focus on strategy, creativity and innovation. It’s a symbiotic relationship where machines take on the labor, and humans handle the intellect.
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With this future in mind, let’s delve into the top robotics stocks to consider for your portfolio.
Top Robotics Stocks: Toyota (TM)
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When we think robotics, our minds might not immediately leap to Toyota (NYSE:TM). Yet, this titan of the automotive industry has intricately woven robotics technologies into its multifaceted operational fabric. Delve deeper, and you’ll discover the Toyota Research Institute, a beacon for the development of robotic tools designed for human amplification.
However, Toyota’s allure doesn’t end there. The company is accelerating in the electric vehicles domain while simultaneously spearheading research in cutting-edge battery technology. Imagine the possibilities, especially as green energy solutions gain prominence globally.
From a fiscal perspective, Toyota’s financials might not dazzle you with flair, but they’re consistent and commendable. With a three-year revenue growth rate at 9% and a net margin of 7.72%, it outshines many in its bracket.
Currently, TM sits at a trailing earnings multiple of 11.77 times, which is strikingly competitive. Analysts, with their finger on the pulse, tag TM as a “Moderate Buy,” projecting a potential rise of nearly 10% to reach a $207.79 target.
Zebra Technologies (ZBRA)
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In the realm of mobile computing, few names resonate as profoundly as Zebra Technologies (NASDAQ:ZBRA). This American tech stalwart has made a mark with its revolutionary technology designed for real-time sensing, analysis and action, often termed smart data capture. It’s the bridge connecting humans with actionable data, ushering in unparalleled efficiencies.
Zebra’s commitment to innovation was underscored in 2021 when it acquired Fetch Robotics, a trailblazer in on-demand automation. This acquisition positions Zebra at the forefront of designing synergistic workflow solutions for its human workforce.
Turning to the numbers, Zebra’s fiscal health radiates positivity. A three-year revenue growth rate of 10.2% places it ahead of nearly two-thirds of its industry counterparts. Its net margin is an enviable 11.82%, and the return on equity is a robust 23.57%. Here’s some more good news for potential investors: ZBRA currently trades at a 0.65X discount cash flow, beneath the sector’s median of 0.98X.
Analysts are bullish, classifying ZBRA as a strong buy with a promising price target of $301.86. That indicates an upside potential of over 19%, making it a prime pick among robotics stocks for those with an eye on growth.
Intuitive Surgical (ISRG)
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In the enticing world of robotics stocks, Intuitive Surgical (NASDAQ:ISRG) stands out as a paradigm of innovation. Specializing in minimally invasive surgeries, it’s not just about technology; it’s about bringing a transformative shift in patient care and clinical outcomes.
Further, Grand View Research shines a light on the compelling numbers: the minimally invasive surgical instruments arena boasted a value of $28.8 billion just last year. With predictions of this sector swelling at a CAGR of 10.3% between 2023 and 2030, we’re potentially staring at a $63 billion industry.
However, let’s not get starry-eyed without examining the balance sheet. ISRG’s current valuation is not what one would term “a steal.” With a forward earnings multiple sitting at a lofty 45.86 times, some investors might be hesitant.
However delve deeper, and the rationale for the premium becomes crystal clear. This is a powerhouse of stability, evidenced by a pristine financial slate with zero debt. Moreover, with a net margin of 21.38%, it eclipses a staggering 88.82% of its industry counterparts.
Finally, analysts categorize ISRG as a strong buy, with an average price of $377.14, implying over 26% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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