There are some great robotics stocks for investors to buy in the robotics industry. I feel that these companies have the most upside potential out of their competitors. The robotics industry is still in its infancy, and as technologies such as AI continue to be adopted worldwide, these firms could be the main beneficiaries of such a transition.
The companies discussed in this article are on the cutting edge of robotics and AI integration. They are poised to capitalize on the rising demand for advanced automation solutions across multiple sectors like manufacturing, logistics, healthcare, and more.
The industry as a whole is growing steadily. Robotocis could be worth 95.93 billion by 2029, growing at a CAGR of 15.91%. But instead of buying shares of these firms when the industry reaches its peak, investors should consider buying these companies today to lock in the highest possible capital appreciation for their investments.
So here are three robotics stocks for investors to consider in March this year.
ABB (ABB)
ABB (NYSE:ABB) is a multinational robotics, power and heavy electrical equipment company.
For 2024, ABB projects positive momentum, anticipating comparable revenue growth of about 5% and a slight improvment in operational EBITA margin from 2023’s 16.9%. The first quarter of 2024 is expected to witness low- to mid-single-digit growth in comparable revenues. Operational EBITA margin will be stable or experience a slight year-over-year improvement.
This outlook builds on the positive momentum it gained last year. Despite challenges in the Robotics and Automation (RA) segment, the company maintained stable year-over-year orders, with a robust order backlog valued at $21.6 billion. ABB saw increased orders in two out of three of its primary operating regions. Operational EBITA surged by 16%, with the margin escalating to 16.3%.
ABB is one of my top robotics stocks that I think could surge as the industry develops thanks to its already strong results and promising outlook.
Omnicell (OMCL)
Omnicell (NASDAQ:OMCL) specializes in automation solutions for the healthcare sector.
OMCL is one of those robotics stocks that I think could rise greatly as the robotics industry matures, mostly due to its small market cap of just around $1 billion at the time of writing.
However, OMCL’s future isn’t entirely speculative, as management has guided for some strong results this year. For the first quarter of 2024, OMCL expects revenues to be between $232 million and $242 million. Management forecasts adjusted earnings per share (EPS) for the full year between 90 cents and $1.40. It expects adjusted EPS for Q1 to range from a loss of 10 cents to break even.
Another advantage of OMCL is its low share outstanding, at around 45 million. Investors are also not immediately at risk of share dilution, which is another key part of my thesis.
The stock’s 12-month price target ranges from $26 to $75, averaging $42.20, indicating a potential upside of 52.0% from its current price.
Rockwell Automation (ROK)
Rockwell Automation (NYSE:ROK) provides automation solutions across various fields, organized into three operating segments: Intelligent Devices, Lifecycle Services, and Software and Control.
I chose ROK because it’s one of those robotics stocks providing the “picks and shovels” to the entire industry, which spans from sensors to software. As the industry matures the need for companies like ROK will rise. They may be an underappreciated name as investors flock to robotics stocks that are more directly engaged in the industry.
Last quarter, the company reported a 3.6% increase in reported sales year over year, with organic sales growing by 1%. Acquisitions contributed 1.4% to this growth, and total Annual Recurring Revenue (ARR) saw a 20% increase year over year.
ROK also reaffirmed its fiscal 2024 sales growth guidance of 0.5% – 6.5% and updated its diluted EPS guidance to $11.24 – $12.74 while maintaining adjusted EPS guidance of $12.00 – $13.50.
All of these factors mean that ROK could be one of those robotics stocks to buy now.
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.
