Best Tech Stocks to Buy: Teradyne (TER)
Research firm IDC says the robotics market is expected to see strong long-term growth, forecasting spending to double by 2020 to a staggering $188 billion.
A good way to play this trend is Teradyne, Inc. (NYSE:TER). Through an acquisition of Universal Robots (UR) in 2015, TER has become a dominant player in the category. The focus is on one of the hottest parts of the market — collaborative robots, sometimes called “cobots.” These are low-cost systems that assist production (things like packing, assembly, gluing and polishing).
In its latest quarter, Teradyne’s robot segment reported a 117%-plus increase in revenues to $19.6 million. And this opportunity is just in the early innings. Says CEO Mark Jagiela:
“UR continues to reshape how companies think about industrial automation … The universal nature of our human scale cobots makes the breadth of applications nearly limitless. We are regularly surprised by the new uses customers have for their cobots.”