3 Robotics Stocks to Automate a Portfolio Full of Profits

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  • With inflation at 3.2%, a resilient job market and positive economic indicators, the U.S. economy is on a path to recovery, making it an opportune time to invest in certain robotics stocks.
  • PTC (PTC): Strategic partnerships, sponsorships and an acquisition position PTC for continued growth in software solutions.
  • Intuitive Surgical (ISRG): With a robust gross profit margin of 66.61%, well above the industry median, and competitive advantages in medical robotics, ISRG is a profitable and innovative investment.
  • AeroVironment (AVAV): The company’s JUMP 20 VTOL Medium UAS exceeded expectations in recent maritime exercises, showcasing its potential for global operations and driving long-term sales.
robotics stocks - 3 Robotics Stocks to Automate a Portfolio Full of Profits

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In the labyrinth of economic dynamics, the United States finds itself in an era of immaculate disinflation. With inflation at a modest 3.2%, below expectations, and a resilient job market, the country navigates a delicate dance between growth and recession. While the Federal Reserve’s initial rate hikes raised concerns, recent data hints at a soft landing. The S&P 500 responded positively, rising 2.4%, and the 10-year treasury yield retreated. With the current trends favoring stability and positive indicators pointing towards sustained recovery, there is growing confidence the economy is well-positioned to heal and overcome potential challenges on its path. Buy these robotic stocks now because innovation will only push forward as the economy heals, pushing these robotics stocks skyward.

PTC (PTC)

The PTC (PTC) website is displayed on an open laptop.
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PTC (NASDAQ:PTC) offers a wide variety of computer software services, such as product lifecycle management and computer-aided design. The company’s stock is up 30% year-to-date (YTD).

Yahoo! Finance reports 17 analysts with a mean 1-year price target of $167.47, ranging from $155.00 to $182.00. Eleven out of 11 analysts gave PTC a Buy or Strong Buy rating.

PTC reported solid FYQ4 financials. Revenue of $547 million missed expectations by $12.34 million and grew 7.7% year-over-year (YoY), and EPS of $1.20 beat expectations by $0.06.

The company recently acquired pure-systems, a leading provider of product and software variant management solutions. It helps manufacturing companies manage different software and systems engineering assets efficiently. The acquisition builds from their previous partnership, meaning the pure systems’ product was already integrated into PTC. That makes this acquisition much smoother and will allow them to receive the benefits faster. It will be a significant growth catalyst for PTC since this combination positions the company as a leading provider of software requirements, configuration, testing and validation solutions. 

Due to its selective, yet effective set of partnerships and acquisitions, PTC is definitely set to grow.

Intuitive Surgical (ISRG)

A sign with the Intuitive Surgical logo standing outside of a company office. ISRG stock.
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Intuitive Surgical (NASDAQ:ISRG) is an American company specializing in producing robotic products to improve the clinical outcomes of patients through minimally invasive surgery.

ISRG’s stock is up 17% YTD. In addition, it is covered by 26 analysts who are projecting a 12-month price forecast with a median-high price of $320 to $400, representing increases of up to 29%. 

Intuitive Surgical saw its market cap rise from $93.77 billion in 2022 to $108.84 billion in 2023, representing an increase of 16.07%. In addition, revenue went up in the same timeframe, reaching $6.85 billion. Earnings also increased by 7.1%, and the P/E ratio went up by 42.81%. Gross profit margin (TTM) also grew substantially, by 66.61%, 18.12% more than the section median of 56.39%. These metrics indicate that ISRG is both profitable and growing at a steady rate.

ISRG is an intuitive leader in medical robotics due to its competitive advantages, mainly its business model combining some benefits of an installed base, razor and blades. ISRG also innovates building tools with guidance from state-of-the-art surgeons. ISRG innovated mechanized arms in surgery, greatly reducing the risk of errors. The surgeon makes the hand movements, transmitting that motion to the robot, which completes the task more accurately. Overall, these levels of intuition and innovation are ISRG’s key competitive advantages.

Due to its competitive advantages and the industry growing at a rapid rate, I give ISRG a Buy rating.

AeroVironment (AVAV)

The logo for AeroVironment (AVAV) is seen through a magnifying glass on the company's website.
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AeroVironment (NASDAQ:AVAV) is an American defense contractor that designs and manufactures unmanned aerial vehicles (UAVs). It also specializes in electric vehicle (EV) charging solutions. 

AVAV’s revenue of $152.35 million grew 40.39% YoY, beating analysts’ expectations by 16.29%. Its diluted EPS of $0.84 grew 347.06% YoY, topping analysts’ expectations by 235.57%. Further financial growth is evident through a net profit margin of 14.37% YoY, a growth of 285.66% and a net income of $21.9 million, representing a whopping 360.81% jump YoY. 

Aero announced the company’s JUMP 20 VTOL Medium UAS exceeded expectations. “The JUMP 20 provided ship-based intelligence, surveillance, reconnaissance and targeting (ISR-T) support to USFOURTHFLT and USSOUTHCOM during at-sea exercises.” The vehicle has already flown over 130,000 land-based hours supporting the U.S. Special Operations Command combat deployments. By extending JUMP 20 operations to the shipboard environment, AeroVironment is now equipped to deliver these services on a global scale. That strategic move should drive increased sales over the long term.

Because of the strong growth opportunity, AVAV stock is one of the robotic stocks for investors to consider buying.

On the date of publication, Michael Que 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.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.


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