As the broader indices like the Nasdaq continue their upward trajectory, now is a compelling time to consider investing in robotics stocks. The robotics industry, buoyed by rapid technological advancements and increasing demand across sectors such as manufacturing, logistics and healthcare, presents a wealth of opportunities for savvy investors looking for the best robotics stocks to buy.
Investing in these robotics stocks today could yield substantial gains as the industry is projected to grow significantly. The service robotics market, valued at $41.5 billion in 2023, is expected to soar to $84.8 billion by 2028, expanding at an annual growth rate of over 20%. By securing positions in these companies now, investors can lock in potential capital appreciation before the market peaks.
Here are seven of the best robotics stocks to buy in June 2024. These companies have immense growth potential and the capability to become market leaders in the burgeoning field of robotics. With the right investments, these stocks could become millionaires for forward-thinking investors.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) known for its da Vinci Surgical System, which has facilitated over 13 million surgical procedures. It is expected to continue expanding its installed base and clinical applications.
In 2023, ISRG placed 1,370 da Vinci surgical systems, up from 1,264 in 2022. This included a notable increase in systems placed under operating lease arrangements. The company saw its revenue grow to $7.12 billion, a 14.49% increase from $6.22 billion in 2022.
Analysts have set a 12-month price target for ISRG stock at an average of $403.67, ranging between $314 and $500. The consensus rating is a moderate buy based on 14 buy ratings and four hold ratings.
For Q1 2024, ISRG reported earnings per share (EPS) of $1.50, surpassing the consensus estimate of $1.40. The revenue for this quarter was $1.89 billion, beating the estimated $1.87 billion and marking an 11.5% year-over-year increase.
Cognex (CGNX)
Cognex (NASDAQ:CGNX) specializes in machine vision systems used in manufacturing automation. It has strong financials and recently integrated AI and advanced analytics.
In Q1 2024, Cognex posted revenue of $210.8 million, a 5% increase year over year, surpassing the analyst estimate of $200.42 million. The company’s net income for the quarter was $12 million, or $0.11 per share, beating expectations of $0.08 per share. This quarter’s performance was bolstered by strong contributions from its machine vision systems and the integration of advanced AI and analytics.
Looking ahead to 2024, Cognex has provided optimistic guidance, expecting revenue for Q2 2024 to be between $230 million and $245 million. This projected increase reflects typical seasonal trends and a recovery in consumer electronics revenue.
Analysts have set a 12-month price target for CGNX stock at an average of $49.15, ranging between $41 and $60. This suggests a potential upside of approximately 6.2% from the current price.
Symbotic (SYM)
Symbotic (NASDAQ:SYM) specializes in warehouse automation with AI-embedded software. The company has shown strong financial growth and is working on diversifying its customer base.
For the first quarter of fiscal 2024, Symbotic reported revenue of $369 million, a significant increase from $206 million in the same period in 2023. Despite this growth, the company posted a net loss of $13 million, an improvement from the previous year. In the second quarter of fiscal 2024, Symbotic’s revenue rose to $424 million, although it reported a net loss of $41 million.
Looking forward, Symbotic has provided optimistic guidance for 2024. The company expects to continue its revenue growth trend, driven by its AI-enabled robotics technology for supply chains. Analysts predict the company’s stock price could reach an average of $55.69 within the next year, suggesting a possible upside of 48.5% from the current price.
Teradyne (TER)
Teradyne (NASDAQ:TER) is a leader in industrial automation and robotics testing. Its products are crucial for ensuring the quality and functionality of advanced robotic systems.
For the first quarter of 2024, Teradyne reported revenue of $600 million, exceeding analysts’ expectations of $566.31 million. The company achieved a GAAP net income of $64.2 million, or $0.40 per diluted share. Teradyne’s Q1 2024 non-GAAP earnings per share were $0.51, surpassing the guidance range of $0.38 to $0.48.
Teradyne has guided Q2 2024, projecting revenue between $665 million and $725 million, with GAAP net income per diluted share expected to range from $0.45 to $0.65.
The company continues to focus on expanding its market presence in industrial automation and robotics testing, which are crucial for ensuring the quality and functionality of advanced robotic systems.
Zebra Technologies (ZBRA)
Zebra Technologies (NASDAQ:ZBRA) provides solutions that enhance the efficiency of robotic systems in logistics and supply chain operations. These solutions offer critical tools for inventory and asset management.
In the first quarter of 2024, Zebra Technologies reported net sales of $1.175 billion, reflecting a 16.4% year-over-year decline. Net income for Q1 2024 was $115 million, with net income per diluted share at $2.23. Despite the decrease in sales, the company managed to control costs, which helped mitigate some of the impact on profitability.
Looking ahead, Zebra’s outlook for 2024 shows signs of modest recovery. The company has implemented expanded cost reduction plans, expected to drive $120 million in annualized net expense savings, up from the previously projected $100 million.
Analysts have a consensus moderate buy rating for ZBRA shares, with a price target range of $300 to $320, indicating growth potential.
iRobot (IRBT)
iRobot (NASDAQ:IRBT) is known for its consumer-focused robotic products, particularly home cleaning. The company continues to innovate and expand its product offerings.
In the first quarter of 2024, iRobot’s revenue was $150 million, down from $160.3 million in the same period the previous year. The company’s gross profit for Q1 2024 was $36.1 million, a slight decrease from $36.7 million in Q1 2023. Despite these declines, iRobot is making strategic moves to improve its financial position, including significant cost reduction initiatives and restructuring efforts.
For 2024, iRobot expects revenue between $825 million and $865 million, with a GAAP net loss per share ranging from $3.13 to $2.70. The company also projects an adjusted loss per share of $3.73 to $3.30, indicating efforts to manage expenses and improve margins.
Looking forward, iRobot remains committed to innovation and expanding its product offerings in the consumer robotics market, particularly home cleaning solutions. The company continues to develop new technologies and enhance existing products.
Aurora Innovation (AUR)
Aurora Innovation (NASDAQ:AUR) provides hardware for autonomous trucks, and its self-detection and response system offers a competitive advantage.
Aurora’s fourth-quarter 2023 revenue reached $565,000, reflecting an improvement in its pilot programs. However, the company continues to report substantial operating expenses, totaling $193 million for the quarter.
For the first quarter of 2024, Aurora’s revenue increased to $650,000, nearly doubling from the previous year. CEO Chris Urmson highlighted the company’s ongoing focus on enhancing the Aurora Driver’s autonomy performance and advancing its commercial launch plans.
Analysts have a mixed outlook on Aurora Innovation, with the company’s stock price target varying widely. Some analysts see potential in Aurora’s long-term plans and technological capabilities, while others remain cautious due to the autonomous driving sector’s high operating costs and competitive pressures.
However, I think AUR could be one of those robotics stocks that will deliver strong results for investors and should not be underestimated.
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.
