7 Robotics Stocks to Target for Triple-Digit Returns in 2023
In the world of investing, the spotlight is currently on robotics stocks for high returns. The heightened attention results from continuous advancements in automation and artificial intelligence, effectively boosting demand for sophisticated robotics solutions. Therefore, the prospect of triple-digit return robotics stocks doesn’t seem far-fetched.
In the coming decade, robotics will have a massive impact on the economic landscape. We’re expecting to see significant improvements in productivity across multiple sectors, from industrial automation to healthcare, from construction to logistics.
Strategically, for those hunting the target robotics stocks for high returns, it’s imperative to make a beeline for the top-performing robotics companies. Not only are these the powerhouses driving innovation, but they’re the ones generating substantial revenue growth while maintaining a dominant market presence.
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Zebra Technologies (ZBRA)
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Zebra Technologies (NASDAQ:ZBRA) has effectively out its unique niche in the bustling world of automation. It made a name for itself as an innovator of mobile computing devices, reshaping the definition of efficiency across numerous sectors. Whether retail, warehousing, healthcare, or banking, its technologies have manifested in automated workflows and empowered workers.
A key strength of Zebra is the diversity of its offerings, meticulously tailored to suit different work environments. Their custom handheld devices, equipped with machine vision and artificial intelligence, provide critical data in a timely manner. Zebra’s interactive kiosks also play a central role in optimizing customer experiences. Moreover, the firm has been incredibly profitable, generating a net income margin of 11% over the past five years and a free cash flow margin of 14.5% over the same period.
UiPath (PATH)
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UiPath (NYSE:PATH) continues to make serious strides in the robotic process automation sphere. Having traded sideways for the better part of last year, the firm looks primed for a sharp uptick, and the numbers tell a compelling story. UiPath’s three-year revenue growth rate stands at over 40%, which comfortably outpaces more than 90% of its competition. On top of that, it generated an EBITDA margin of 17.1% over the same period.
UiPath reported an impressive first-quarter 2024 revenue figure of $290 million, marking an 18% rise from the previous year. Moreover, it plans to spend a whopping $75 million on research and development. Secondly, its positive operating cash flow of $67.3 million underscores a healthy financial trajectory, providing ample room for further innovation. Its recently released AI-driven platform (2023.4) is a testament to UiPath’s commitment to staying ahead of the curve.
Intuitive Surgical (ISRG)
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Intuitive Surgical (NASDAQ:ISRG) has established its strong presence in the robotic-assisted, minimally invasive surgery space. Any intermediate pull-back in price might be a golden opportunity to accumulate ISRG stock.
The key to Intuitive’s appeal is the da Vinci surgical system. With an astounding 12 million procedures under its belt, its product is a vital contributor to the firm’s financial health. Moreover, the firm posted $1.7 billion in its first quarter sales, roughly 81% of this revenue recurring. Its recurring revenue ensures robust cash flow visibility as its global footprint expands.
Moreover, Intuitive’s significant global presence is solidified by an installed base of over 6,000 da Vinci systems worldwide, offering appealing diversity. This strong international footprint offers a protective buffer for investors wary of overexposure to the U.S. market.
Teradyne (TER)
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Teradyne (NASDAQ:TER) is a key player in the automation space. Known for its high-caliber industrial equipment, Teradyne’s forte revolves around automating repetitive tasks, especially within the semiconductor sphere. Teradyne’s robotic solutions offer a breath of fresh air, transforming laborious device testing into a more streamlined process.
However, the firm doesn’t stop at testing semiconductors, as it has skillfully maneuvered its way into forming significant partnerships within the automotive, aerospace, and defense sectors. Strategic acquisitions, such as those of Universal Robots and Mobile Industrial Robots, have expanded its market share in its niche.
Therefore, from the development of everyday gadgets to mission-critical machinery and even the fast-evolving 5G market, its technological prowess continues to revolutionize industries, solidifying its reputation in the automation sector.
PTC (PTC)
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PTC (NASDAQ:PTC) has established a robust presence in the field of augmented reality, industrial internet-of-things platforms, and computer-aided design software. Rather than creating physical machinery, PTC empowers manufacturers by integrating their existing equipment with the digital economy. This intertwining, facilitated by PTC’s cutting-edge software solutions, significantly boosts operational efficiency and increases workforce productivity.
Though it’s not exactly a robotics pure-play, its role in the robotics arena is undeniable. PTC’s software products play a critical part in connecting and orchestrating machines and individuals, helping unlock the massive potential of robotics. By supplementing human capabilities, this sophisticated technology allows workers to shift their focus to more complex tasks. Therefore, with its wide-reaching applications across many sectors, PTC deserves its place as one of the best long-term robotics plays for significant returns.
Rockwell Automation (ROK)
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Rockwell Automation (NYSE:ROK) has effectively delved into the arena of manufacturing and mining, with a clear focus on digital transformation, industry analytics, and industrial automation control. Moreover, the firm is partnering with robotics manufacturers to pair its control software with the latest advancements in robotics technology.
The firm’s spectacular growth trajectory and massive international standing are particularly impressive. For the second quarter of 2023, the company delivered a year-on-year growth of 31.8% in the Asia Pacific market. Though the region contributes only 15% to overall sales, company revenues outside of North America will see substantial growth as emerging markets continue to flourish. Moreover, the company reported a free cash flow of $156 million for the first quarter of 2023. Given its healthy growth trend, it’s reasonable to expect a swelling of free cash flows.
iRhythm Technologies (IRTC)
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With innovation pulsating at its core, iRhythm Technologies (NASDAQ:IRTC) remains in the realm of cardiac technology. Its remarkably efficient Zio heart rate monitor offers top-tier analysis, potentially bypassing the need for hospitalizations and preventing severe cardiac events. The real game-changer is the astounding 1 billion hours of ECG data that iRhythm draws on, turning its resource into a bustling enterprise.
Moreover, the company’s financial consistency is as remarkable as its technology. Its average 5-year revenue growth clocks in at an impressive 33.8%, surpassing sector averages. A glance at its most recent quarterly report showcases a robust 20.6% revenue increase to $111.4 million, with the gross margins maintaining an impressive 67.9% growth year-over-year. With its sights set high, the management anticipates the firm’s evolution into a $1 billion entity by 2027.
On the date of publication, Muslim Farooque 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
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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