The future of the robotics industry appears promising, with significant growth potential anticipated by 2030. As robotics technology advances, there will be a shift towards professional services robots dominating the market, addressing consumer demands for quicker deliveries and personalized products. Automation will increasingly replace lower-paying jobs, driven by labor shortages and rising wages. This evolution suggests a dynamic future where robotics stocks to buy now transform industries and create new opportunities in manufacturing, logistics and personalized services, contributing positively to economic growth and innovation in the U.S.
The robotics industry is expected to reach $95.93 billion by 2029, growing at a CAGR of 15.91%. Robotics has become more prominent in the market due to increased demand combined with large investments in the industry. This makes it clear that investing in the industry will be profitable with the innovation-based economy and robotic industry growth, but investing in these three specific top robotics stocks will benefit your portfolio even more.
PTC (PTC)
PTC (NASDAQ:PTC) provides an augmented reality and industrial IoT platform and CAD software. The company’s products help manufacturers digitize product development processes, improving efficiency and driving innovation. Over the past year, its stock has climbed nearly 40%, but analysts are still bullish. 21 analysts have a median price target of $202, representing a 14% increase from the current price.
PTC is well-positioned to benefit from this secular digitization trend, and its latest earnings report underscores this point. In Q1 2024, the company grew ARR by 24% YOY, revenue by 18% YOY, and free cash flow by 6% YOY. Despite the challenging macro backdrop, PTC maintained both top and bottom-line growth. For FY2024, the company forecasts ARR to increase by 14% YOY, revenue by 13% YOY, free cash flow by 23% YOY, and EPS by 61% YOY. Supported by solid growth, PTC boasts resilient and robust financial figures.
Moreover, PTC has a history of making strategic acquisitions. Most recently, it acquired pure-systems, a leading provider of product variant management solutions. The acquisition is expected to add important functionality to PTC’s existing portfolio of products and allow it to support its customers better.
Zebra Technologies (ZBRA)
Zebra Technologies (NASDAQ:ZBRA) provides enterprise asset intelligence solutions worldwide, including barcode scanners, interactive kiosks, mobile devices, and software. The company’s products help businesses digitize and automate their workflows, improving productivity and operational efficiency.
Unfortunately, weakening demand has negatively impacted Zebra’s sales, and the company’s financial figures have been struggling in recent quarters. In Q4 2023, net sales fell by 32.9% YOY, and net income decreased by 90.9% YOY, underscoring Zebra’s challenges. However, this weakness can be attributed to market and macroeconomic conditions, not to any issues within the company itself. Zebra’s global presence, scale and diversified business give it a distinct competitive advantage.
Moreover, Zebra is at the forefront of the AI revolution, introducing its exciting innovations. The company’s AI initiatives can potentially drive demand for its products. For example, Zebra collaborates with industry giants like Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Cloud and Android, as well as Qualcomm (NASDAQ:QCOM) to incorporate new generative AI capabilities into its handheld devices. This cutting-edge technology will empower front-line employees to access domain-specific knowledge, enhancing their decision-making abilities and overall productivity.
To summarize, there is hope for a recovery in Zebra’s business. Until then, you can buy this option in robotics stocks at a reasonable 25 times forward earnings estimates.
Hitachi (HTHIY)
Hitachi (OTCMKTS:HTHIY) is a Japanese multinational conglomerate that produces industrial equipment and technologies for robots. Currently trading at $179.94, HTHIY is up 24.79% YTD and is rated a “strong buy” by Wall Street analysts.
In Q3 2023, Hitachi beat analyst expectations and reported outstanding top- and bottom-line growth. Total revenues increased 16% year over year to 2,258 billion yen, while net income jumped an astonishing 116.2% year over year to 235.9 billion yen. The company’s growth is expected to continue, with management forecasting a staggering 114% increase in EPS for FY 2023. This remarkable performance underscores the company’s ability to enhance cash flows and scale its revenues, making it an attractive investment.
The most significant catalyst behind Hitachi’s success is its recent partnership with AI giant Nvidia (NASDAQ:NVDA) to incorporate generative AI into its business. Hitachi will utilize Nvidia Omniverse to stimulate and develop large-scale solutions through this collaboration. The company will also combine its Lumada AI library with Nvidia’s AI Enterprise and Modulus platforms to enhance customer experience, improve its offerings, and create intelligent, AI-centric solutions. Overall, Hitachi’s partnership with Nvidia will be a boon to its business by boosting efficiency in its products and services.
Hitachi is an attractive choice among robotics stocks, boasting stellar financials and a strategic partnership with Nvidia.
On the date of publication, Michael Que did not have (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.
