When it comes to forward-looking investment ideas, few are as relevant as robotics stocks. It’s really all in the numbers.
According to Grand View Research, the global industrial automation and control systems market size reached a valuation of $172.26 billion last year. Moving forward, experts project that the sector could expand at a compound annual growth rate (CAGR) of 10.5% from 2023 to 2030. At the forecast culmination point, the segment could print revenue of $377.25 billion.
Another factor to consider for robotics stocks is the underlying productivity acceleration. Unlike human operators, robots can work around the clock – save of course for occasional maintenance. Aside from certain necessary periods of downtime, the continuous and uninterrupted workflow could increase productivity by up to 30%, per recent studies.
Given that we’re moving more toward the automation of everything, you need to stay ahead of the curve. Below are robotics stocks for 2024 and beyond.
Intuitive Surgical (ISRG)
What it is: Based in Sunnyvale, California, Intuitive Surgical (NASDAQ:ISRG) develops, manufactures, and markets robotic products designed to improve clinical outcomes of patients through minimally invasive surgery. Its main product is the da Vinci Surgical System.
Relevance: Robotics stocks don’t just center exclusively on major industrial applications. Rather, their precise mechanisms can be used across various platforms, including in healthcare. According to Precedence Research, the surgical robotics market reached a valuation of $8 billion in 2022. Further, experts anticipate that the sector could hit $36.37 billion by 2032. That would come out to a CAGR of 16.4% from 2023.
Pros: Financially, Intuitive is attractive because it carries no debt, affording it flexibility. Also, the company enjoys solid revenue growth and consistent profitability over the past decade. Unsurprisingly, analysts rate shares a consensus strong buy.
Cons: Investors shouldn’t look for immediate results as the average price target is only $336.16. That said, the high-side target does come in at $400.
Teradyne (TER)
What it is: Headquartered in North Reading, Massachusetts, Teradyne (NASDAQ:TER) is an automatic semiconductor test equipment designer and manufacturer. In addition, it’s one of the top robotics stocks for 2024 thanks to its ability to facilitate mechanized automation for enterprise-level clients.
Relevance: With more companies seeking automation thanks to the underlying accelerated productivity, Teradyne should enjoy a robust demand profile. According to Fortune Business Insights, the global industrial robots market reached a valuation of $16.78 billion in 2022. Further, the sector could expand to $41.02 billion by 2030. If so, that would come out to a CAGR of 12.3% from 2023.
Pros: One of the key attributes for Teradyne is the financial picture; specifically, the company benefits from a robust, cash-rich balance sheet. Further, the test equipment specialist prints excellent margins across the board. Lastly, analysts rate shares a consensus moderate buy.
Cons: A three-year revenue of 13.3% is only a bit above average for the sector. Also, there’s implied limited upside so patience is a must.
Deere (DE)
What it is: Calling Moline, Illinois home, Deere (NYSE:DE) manufactures agricultural machinery, heavy equipment, forestry machinery and diesel engines. It also develops drivetrains used in heavy equipment along with lawn care products.
Relevance: At first glance, Deere doesn’t come across as one of the robotics stocks for 2024. However, the company has been moving into the automation space recently. For example, it developed a fully autonomous tractor and tillage, which could help boost much-needed productivity. Let’s face it – young people aren’t exactly clamoring to become farmers.
Pros: Although farming might not be a top-tier goal among young people looking to start their careers, here’s the thing. According to Grand View Research, the global agricultural robots market size reached $11.57 billion in 2022. By 2032, sector revenue could hit over $48 billion. Combine that with Deere’s strong revenue growth and consistent profitability and you should have a winner.
Cons: DE has been volatile in the past 52 weeks so it’s a dynamic worth monitoring carefully.
On the date of publication, Josh Enomoto 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.
