3 Stocks That Could Be the Next Big Thing in Robotics


  • Redefine efficiency with these robotics leaders.
  • Rockwell Automation (ROK): It boasts impressive sales and earnings growth.
  • UiPath (PATH): The company secured a significant DOD partnership and is advancing AI integration.
  • Teradyne (TER): It’s a solid performer with a strong future growth forecast.
robotics stocks - 3 Stocks That Could Be the Next Big Thing in Robotics

Source: Shutterstock

The robotics industry is seeing tremendous growth driven by rapid technological advancements and increasing demand across multiple sectors. Companies at the forefront are those with innovative and disruptive technologies that can create more capable, intelligent and cost-effective robot systems.

Furthermore, the market outlook for robotics is extremely promising. The global robotics market was valued at $27 billion in 2020. It is projected to reach $176 billion by 2025, expanding at over 20% annually according to Markets&Markets research. 

Therefore, investors without even a small position in these firms risk losing out on substantial gains. So, in order to mitigate these risks, let’s examine three of the best robotics stocks for investors to consider buying.

Rockwell Automation (ROK)

An image of a robot reaching toward a laptop, surrounded by chat bubbles and graphs
Source: klyaksun/Shutterstock

First, Rockwell Automation (NYSE:ROK) offers comprehensive industrial automation products. It’s also one of those best robotics stocks for investors to sink their teeth into.

In 2023, ROK  had a great year, marking significant strides in sales and earnings. Specifically, the fiscal year witnessed a 20.5% surge in Q4 sales, culminating in a 16.7% year-over-year (YOY) increase in annual sales. And, this growth translated into a diluted EPS of $11.95 and an adjusted EPS of $12.12, reflecting increases of 50% and 28%, respectively. The bull case was further strengthened through a 67% and 78% rise in cash provided by operating activities and free cash flow, reaching $1.4 billion and $1.2 billion.

For 2024, ROK has set a strong outlook. The company anticipates reported sales growth between 0.5% and 6.5%, with organic sales expected to vary from a decrease of 2% to an increase of 4%. EPS are projected in the range of $12 to $13.50.

UiPath (PATH)

The UiPath (PATH) app is displayed on a smartphone screen.
Source: dennizn / Shutterstock.com

UiPath (NYSE:PATH) specializes in Robotic Process Automation (RPA). The reason for being bullish on PATH is that it secured a significant partnership with the U.S. Department of Defense (DOD) through its partner FedResults. This involves a potential $95 million agreement to supply UiPath products and services.

Also, it launched its UiPath Autopilot for Studio and Test Suite, which came with a range of improvements. These enhancements are part of UiPath’s ongoing efforts to integrate AI more deeply into its platform.

Financially, UiPath reported a revenue of $1.308 billion for fiscal 2024, marking a 24% YOY growth. And, forecasted revenues lie between $1.555 billion and $1.56 billion for fiscal 2025.

Finally, analysts are bullish on PATH’s prospects in the short-term and long-term. Analysts expect a substantial EPS improvement of 19.41% this year. Thus, these double-digit increases are expected throughout the forecast period until 2027.

Teradyne (TER)

Teradyne Silicon Valley office
Source: Michael Vi / Shutterstock.com

Teradyne (NASDAQ:TER) focuses on automatic test equipment, and just may be an underrated pick in the robotics industry. 

For example, TER reported a net income of $117 million for Q4 of 2023. This underscores a solid performance with a net income increase to $448 million for the full year. Their quarterly revenue was $671 million, contributing to a yearly total of over $2.7 billion.

Looking forward to 2024, analysts predict a bright future for TER. Revenue is expected to grow by 2.75% this year, reaching $2.75 billion. And, a more significant increase of 22.51% is forecast for the following year. This suggests a rebound and strong market demand for their products and services. Also, EPS are expected to rise, with an 8.27% increase this year and a substantial 58.95% increase next year.

Furthermore, analysts give TER a buy rating, with a 12-month average price target of $108.5.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

Article printed from InvestorPlace Media, https://investorplace.com/2024/03/3-stocks-that-could-be-the-next-big-thing-in-robotics/.

©2024 InvestorPlace Media, LLC