With technology evolving at a break-neck pace, robotics emerges at the forefront of innovation, offering transformative potential across many sectors from manufacturing to healthcare. Hence, for those with a forward-thinking approach, betting on the top robotics stocks to buy presents itself as a lucrative long-term investment realm.
Moreover, Precedent Research is incredibly optimistic about the sector’s growth runway, forecasting a meteoric rise to roughly $283.19 billion by 2032, supported by a robust CAGR of 14.7% from 2023 to 2032, paving the way for a new era of intelligent machines. Amidst the rapid growth expected in the robotics industry, driven by relentless mechanization, these three robotic stocks stand out as top choices at this time.
Top Robotics Stocks to Buy: Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is a trailblazer in robotic-assisted surgery with its revolutionary da Vinci surgical system. The installation of the technology has significantly bolstered ISRG’s market positioning, demonstrating the growing acceptance and adoption of robotic-assisted surgeries. These installations have helped the firm deliver double-digit growth in its top line in the past five years, underscoring the impact of advanced technology on improving surgical outcomes.
Consequently, ISRG has proven to be a multi-bagger investment, delivering more than 100% gain over the past five years. Moreover, backed by its solid performance in the past year, the stock shot up 43% in the past year.
Furthermore, ISRG delivered another stellar showing in the fourth quarter (Q4), which blew past analyst estimates. Non-GAAP earnings-per-share surpassed analyst estimates by 11 cents, and revenue of $1.93 billion beat estimates by $30 million. Worldwide da Vinci procedures also saw a significant 21% growth compared to the prior year.
Further excitement surrounds the company’s recent submission of a 510(k) application for the next-generation da Vinci 5 platform. The phased launch plan suggests careful preparation on the supply and manufacturing side, ensuring the company is ready to meet demand when the platform receives FDA clearance, solidifying its position as a leader in surgical robotics.
Kratos (KTOS)
While not solely focused on traditional robotics applications, Kratos (NASDAQ:KTOS) is a major player in the crewless aerial vehicle space, a rapidly evolving segment in the robotics industry. KTOS specializes in unmanned systems, satellite communications, cybersecurity and other related segments that have become mission-critical for defense and security entities. The alignment with high-priority defense needs and the growing demand for unmanned and autonomous technologies have helped KTOS surge to new heights.
Its products and services have resulted in tremendous growth across both lines for KTOS. In the past seven consecutive quarters, KTOS has outperformed analyst estimates by comfortable margins. In Q4, the company reported a 10% increase in revenues on a year-over-year (YOY) basis, reaching $274 million. Additionally, its adjusted EBITDA surged to $29.1 million, up significantly from $19.2 million in the prior year, showcasing its strong growth and operational efficiency. Furthermore, during its Q4 call, KTOS revealed the Air Force is testing its autonomous drone, hinting at a major contract.
UiPath (PATH)
UiPath (NYSE:PATH) spearheads the booming robotics process automation (RPA) industry with its expertise in creating, deploying and managing software robots, solidifying the sector’s bullish trend.
Moreover, UiPath’s latest financial disclosures reveal a 24% YOY increase in annual recurring revenue to $1.38 billion, coupled with a significant 244% surge in non-GAAP operating income, underscoring its financial strength and market confidence.
Furthermore, UiPath is going all-in with AI, having recently unveiled Project Wingman and UiPath Autopilot. These innovations pave the way for users to generate automation processes via natural language and optimize daily tasks with AI, enhancing UiPath’s technological edge. Such advancements signal UiPath’s ongoing commitment to innovation and setting new industry standards.
Furthermore, strategic alliances, like the partnership with SAP (NYSE:SAP) and a focus on augmenting AI capabilities through its business automation platform, are critical to UiPath’s growth strategy. These initiatives solidify its position as a frontrunner in robotics and AI, marking it as a lucrative investment option.
On the date of publication, Muslim Farooque 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.
