Robotics has the potential to transform various industries, particularly manufacturing and healthcare, by creating new opportunities for automation and efficiency. Older industries and newer ones will benefit from automation in one way or another. Robotics will be the conduit through which significant changes in these industries happen.
The rise of artificial intelligence (AI) could create even more efficiencies in this burgeoning field. In fact, with AI, robotics could enter a hyper-growth stage. Investors looking to balance long-term returns with exposure to cutting-edge technologies should look no further than these three robotics stocks in April 2024.
Symbotic (SYM)
Symbotic (NASDAQ:SYM) is a leader in autonomous warehouse solutions, which use AI to optimize the storage, retrieval and transportation of goods. Symbotic’s warehouse solutions consist of software, robots and racks that work together to increase the speed, accuracy and flexibility of warehouse operations. While SYM’s revenue has doubled consecutively since 2020, management expects there to be more recurring revenue and, therefore, top-line predictability as more products are deployed.
Symbotic ended 2023 on a high note. Top-line figures ended the year at $1.2 billion, representing a jaw-dropping 98% year-over-year increase from Symbotic’s 2022 revenue figures. The AI-enabled robotics firm is currently trading at around 13.8x forward sales.
Stepping back a little, supply chain management (SCM) software, the field in which Symbotic is an important player, has been operating on all cylinders since the pandemic-induced supply chain disruptions shook the world a few years ago. SCM being a $20 billion industry, there is still much less adoption amongst retailers versus other industries, which indicates there is a lot of white space in SCM software, especially for retail-focused players like Symbotic.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is the pioneer and market leader in robotic-assisted surgery. The company’s flagship product, the da Vinci Surgical System, enables surgeons to perform minimally invasive procedures with enhanced precision, control and dexterity. The robotics firm continues to experience record growth from year to year. Since its inception, the da Vinci Surgical System has been used in over 13 million surgeries across various specialties such as urology, gynecology, general surgery and cardiothoracic surgery. The da Vinci product also provides Intuitive Surgical with recurring revenue through services and operational leases related to da Vinci.
In its most recent Q4 earnings print, ISRG beat Wall Street’s estimates on both revenue and earnings per share estimates. Higher volume for the da Vinci Surgical System ultimately led to the high-performing numbers the company reported. The stock surged around 10% after the report came out. On a year-to-date perspective, ISRG has risen more than 18%.
Because Intuitive Surgical’s core product growth remains impressive, this could be an attractive buying opportunity for investors shares continue to rally.
UiPath (PATH)
UiPath (NYSE:PATH), although a software firm, does deserve a spot on this robotics list. The firm creates and implements software allowing customers to automate various business processes using robotic process automation (RPA) and artificial intelligence.
The UiPath Business Automation Platform enables employees to quickly build automations for both existing and new processes by using “software robots” to perform a myriad of repetitive tasks. These range from simply logging into applications or moving folders to extracting information from documents along with updating information fields and databases. UiPath also provides a number of turnkey automation solutions, allowing the company to target customers in a variety of industries including banking, healthcare and manufacturing.
Last year, shares of PATH almost doubled. Since the start of the new year, there has been pullback from all the major indices and, of course, UiPath, at its frothy valuation, saw some selling pressure. The company’s share price has fallen 7% YTD. Selling pressure has continued slightly after weaker-than-expected guidance in UiPath’s Q4 2023 earnings report. Outside of guidance, the company beat both revenue and earnings estimates. Q4 revenue increased 31% YOY to $405 million, and annual recurring revenue increased 22% to $1.5 billion. The company also achieved its first quarter of GAAP profitability as a public company in the fourth quarter.
Strong financial figures, despite weaker-than-expected guidance, could make UiPath a strong performer in 2024.
On the date of publication, Tyrik Torres 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.
