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3 Millionaire-Maker Robotics Stocks to Buy in November 2023

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  • These are the robotics stocks to buy and hold for multibagger returns potential
  • Intuitive Surgical (ISRG): Da Vinci systems will continue to increase globally and boost recurring revenue visibility
  • UiPath (PATH): Operating level profitability likely in the coming quarters backed by strong growth in ARR
  • iRobot Corporation (IRBT): More than 50 million robots sold globally and a bright outlook with an attractive product launch pipeline
robotics stocks - 3 Millionaire-Maker Robotics Stocks to Buy in November 2023

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Robotics and automation are a necessity for the future. Be it for operational efficiency or cost controls, companies are going to adopt automation. It’s estimated that the industrial robotics market will be worth $60.56 billion by 2030. The healthcare robotics market specifically is expected to be worth $58.2 billion by 2030.

The growth of robotics and automation does not come as a surprise. It’s an era of smart work rather than just hard work. The focus on artificial intelligence will further accelerate the case for deploying technology to boost productivity. While the industry outlook is positive through the decade, robotics stocks have been relatively subdued. This presents a good opportunity for accumulating some millionaire-maker robotics stocks.

This column discusses three robotics stocks that are worth holding until 2030. As the addressable market expands, revenue for these robotics companies can grow multi-fold in the next five to ten years. Let’s discuss the reasons to be bullish on these stocks.

Intuitive Surgical (ISRG)

A sign with the Intuitive Surgical logo standing outside of a company office. ISRG stock.
Source: Sundry Photography / Shutterstock.com

Intuitive Surgical (NASDAQ:ISRG) is among the best robotics stocks to buy and hold. It’s worth noting that in the last five years, ISRG stock has delivered returns of only 54%. I believe that as the adoption of robotics driven healthcare products increases globally, the stock will skyrocket.

As an overview, Intuitive Surgical is a manufacturer of minimally invasive care products in the U.S. However, the company has increasing global presence.

As of Q3 2023, the number of procedures performed using the company’s da Vinci systems totaled 13 million. Further, between 2019 and last year, the procedures on the system increased at a CAGR of 15%. Clearly, there is a positive trend and this will translate into revenue and cash flow upside.

An important point to note is that the company has a recurring revenue model. Last year, 79% of the revenue was recurring. This underscores the view that long-term margin expansion and cash flow growth is likely to be robust.

UiPath (PATH)

The UiPath logo on a smartphone in front of a computer screen.
Source: dennizn/Shutterstock.com

UiPath (NYSE:PATH) is another name among robotics stocks that looks attractive even after returns of 40% YTD. The company is a provider of end-to-end automation platform for robotic process automation solutions.

For Q2 2023, UiPath reported healthy revenue growth of 19% on a year-on-year basis to $287 million. On the flip-side, UiPath reported operating loss of $77 million. However, it’s worth noting that operating level losses have narrowed significantly on a year-on-year basis. I expect operating profit in the next few quarters and that’s a potential catalyst for PATH stock surging higher.

The company is providing solutions to a wide range of industries including healthcare, insurance, manufacturing, and banking, among others. The addressable market is therefore significant and with AI-powered automation, the company is positioned to increase its annual recurring revenue potential. The current ARR stands at $1.3 billion and had increased by 25% on a year-over-year basis in Q2 2023.

iRobot Corporation

In this photo illustration the iRobot Corporation (IRBT) logo seen displayed on a smartphone screen
Source: rafapress / Shutterstock.com

iRobot Corporation (NASDAQ:IRBT) stock has trended lower by 37% YTD. I believe that this is a good opportunity to accumulate. As an overview, iRobot is a seller of robots and home innovation products in the United States, Europe, and other international markets. The company claims to have already sold nearly 50 million robots globally.

For Q3 2023, the company reported revenue of $186.2 million. On a YoY basis, the revenue trend has been weak and this explains IRBT stock downside. However, there are two important points to note.

First, the company has introduced two new products in Q3 2023 and the product pipeline is attractive. With new products on the market, revenue is likely to accelerate.

Further, revenue from mid-tier robots and premium robots represented 81% of total revenue in Q3 2023. As the revenue share of premium robot swells, there is a strong case for narrowing of operating level losses in the next 12 to 24 months.

On the date of publication, Faisal Humayun did not hold (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.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.


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