Robotics stocks represent one of the most exciting investment prospects for stock buyers. The increasing importance of information technology in manufacturing and the development in the concept of the industrial “internet of things” are likely to power robotics stocks to a new era of growth.
According to the International Data Corp., the total spending on robotics and drones is expected to top $128.7 billion in 2020, up 17.1% from 2019. Yearly sales numbers in the industry are expected to reach $241.4 billion by 2023 and are likely to grow at a CAGR of 19.8%.
There is a long list of robotics stocks for investors to choose from. This article will specifically cover the most innovative ones, which will make people’s lives easier. These stocks include the following:
Robotics Stocks: Deere (DE)
Deere is an agricultural and construction machinery equipment manufacturer which is a leader in the precision agriculture market. The company’s solutions include onboard computers, IoT sensors and telematics solutions that help farmers in steering farming equipment.
The company’s solutions provide high-quality data and guidance for farmers to improve performance and remotely manage equipment. For the past couple of years or so, Deere has been pushing into data-driven analytical tools and automation. It’s equipment now uses GPS systems, unmanned aerial equipment/drones, 4G LTE modems and cloud integration
With the world population expected to reach up to 10 billion people by 2050, it is imperative to grow 50% more food than what we are growing now. Therefore, companies such as Deere will prove instrumental in increasing land productivity.
DE stock is trading at about $176 and has an impressive return on equity of about 23%. Price targets for the stock are going as high as $200, though the mean targets are slightly lower than its current price. The stock has grown 8% year-to-date and 14% this past month. Therefore, its one of the better investments in the robotics world, and now is a good time to add it to your portfolio.
Zebra (ZBRA)
Zebra Technologies is one of the major players in the diversified machinery segment. Its products include mobile computers, scanners, imagers, RFID products, location technologies and others. It has become an innovator in the provision of different solutions that enable businesses to gain a competitive edge. Moreover, it offers workflow and design consultation to analyze existing technology infrastructure and business processes.
The company recently unveiled its SmartSight solutions, an intelligent automation solution that improves front-of-store operations and enhances the shopper experience. The company’s latest NRF 2020 robot utilizes the technology to identify out-of-stock conditions, pricing and planogram issues on the shelf.
Zebra generates 80% of its revenue from North America and EMEA countries, which went into lockdown in March. However, as lockdown restrictions ease across the globe, the company expects a turn-around in the latter half of the year.
ZBRA stock is trading at around $273 and with a price-earnings ratio of about 28.7. Upward price targets for the stock are going at $300, which makes it one of the more valuable stocks in the stock market. With a one-year return of roughly 38%, the stock could potentially become a great entry in your portfolio.
Cognex (CGNX)
Cognex offers a range of solutions that help in monitoring and controlling different robotic and automated processes. The company’s 2D and 3D vision services enable industries to carry out various activities. The company recently expanded into high growth markets, including logistics and consumer electronics. Cognex is also making inroads in AI with its computer vision technology, which experts believe to be a market of around $10 billion.
Cognex recently announced its first-quarter results, which naturally took a hit due to the Covid 19 pandemic. However, revenue increased by 4% compared to the fourth quarter of 2019 and it ended the quarter with $845 million in cash and investments. Management has withdrawn guidance for the year due to the uncertainties surrounding the market conditions. However, as things start to improve, expect the company to bounce back from a relatively weak first-quarter showing.
CGNX stock is trading around its high estimates at roughly $65. It has a healthy P/E ratio of 57.8 and a return on equity of more than 15.2%. I expect the stock’s price to increase in the latter half of the year with a key focus on its logistics performance.
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. He does not directly own the securities mentioned above. As of this writing, Muslim Farooque did not hold a position in any of the aforementioned securities.
