Among long-term investment themes, robot stocks are worth considering for their multi-bagger returns. In a dynamic world when it comes to technology, robotics and artificial intelligence will play an important role across industries. Businesses must adopt these technologies to remain competitive and reduce costs.
Therefore, I believe some of the best robotics stocks should be included in long-term portfolios. From a growth perspective, the industrial robot market is expected to be worth $60.56 billion by 2030. According to optimistic estimates, the industrial robotics market could be worth $142.8 billion by 2032.
All these estimates point to sustained growth for the industry. This column describes three of his robotics stocks that are well positioned to benefit from industry tailwinds. In the long run, these stocks can pay off multiple times.
Let’s discuss why we are bullish on these attractive value stocks.
Intuitive Surgical (ISRG)
intuitive surgery (Nasdaq:ISRG) is one of the top robot stocks to buy. After trading at a July high of $358, ISRG shares have corrected 20%. I think this correction is a good opportunity to accumulate.
In summary, Intuitive Surgical has a global presence in the robotic-assisted minimally invasive surgery business. In the second quarter of 2023, Intuitive reported healthy growth with revenue growing 15% year over year to $1.76 billion. Revenue growth is expected to remain strong as the adoption of robotic-assisted surgery increases.
It’s also worth noting that 79% of the company’s revenue is recurring revenue. As the Da Vinci System’s installed base expands globally, it will provide greater visibility into the company’s cash flow. This creates ample headroom to increase dividends and invest in innovation.
Another important growth factor is: As of Q2 2023, the Da Vinci System installed base in the US was 4,805. Overseas, the number was 3,237. The company’s presence is diversified and it is clear that there is significant growth potential in emerging markets in Europe and Asia.
UiPath (New York Stock Exchange:path) Last year, stocks were volatile due to the downward bias. However, I believe business development will be positive for this robotic process automation solution provider. Fixes are a good opportunity to accumulate PATH stock over the long term.
In Q1 2024, UiPath reported revenue of $289.6 million. The company’s GAAP operating loss narrowed significantly over the same period. I am bullish on continued improvement in key margins as full-year recurring revenue continues to increase quarter-over-quarter. The increasing trend in the number of major customers also indicates continued improvement in profit margins. We believe PATH stock is on an upward trend as operating cash flow continues to turn positive. s
It’s important to note that the company’s AI-powered UiPath business automation platform has applications in all major industries. The market it serves is therefore important, and the company’s significant investment in research and development ensures its competitiveness.
Teradyne (New York Stock Exchange:TER) stocks have trended slightly higher over the past few quarters. After the current period of strength, an upside break seems imminent. At a forward price/earnings ratio (PER) of 35.8, this growth stock looks attractive.
In summary, Teradyne is a provider of advanced test solutions and collaborative and autonomous mobile robots. For the second quarter of 2023, the company reported revenue of $684 million and operating profit of $151 million.
It is important to note that the slowdown in global industrial activity has adversely affected the company’s robotics business. However, this is likely to reverse in the next few quarters, boosting growth. The company has already started shipping the UR20, but has a “significant backlog.”
Robotics now contributes 13% of total sales, with 87% coming from automated testing. The company expects the revenue contribution from its robotics business to increase to 19% by 2026. With sustained free cash flow, potential acquisitions could well drive growth.
As of the date of issuance, Faisal Humayun did not hold any positions (directly or indirectly) in the securities referred to in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.