business

7 robotics stocks to buy before the nearshoring trend takes off


Investors looking for the best robotics stocks to buy have a lot to consider.

In response to the global pandemic, supply chain bottlenecks, trade issues and geopolitical tensions, most US-based companies are looking to relocate production closer to their domestic facilities. The nearshoring trend is already taking off and robotics should be an essential piece of the puzzle. Therefore, robotics stocks are expected to take off significantly in the future.

Swiss technology leader ABB recently revealed survey results showing how more than 60% of US and European respondents are exploring relocation and outreach operations to build resilience in the face of global challenges.

More than 60% of respondents also believe that robotic automation will play a key role in facilitating change in operations. In an ever-changing world, companies need to modify existing structures and adopt new technologies to future-proof their businesses.

American companies are now turning to robotics and automation to find solutions to labor shortages and an aging workforce. Statistics from the International Federation of Robotics show a 28% increase in robot density per 10,000 workers in the first quarter of this year on an annual basis.

The rate is the highest ever, making finding the best robotics stocks to buy now critical.

IRBT i robot $58.00
ISRG Intuitive surgery $190.79
FANUY Fanuc $15.01
TER Teradyne $79.16
PATH UiPath $13.10
HEAD OFFICE Siemens $48.93
NVDA Nvidia $125.22

i robot (IRBT)

Source: Grzegorz Czapski / Shutterstock.com

i robot (NASDAQ:IRBT) recently saw its shares take a massive beating in the stock market. Much of this has to do with semiconductor shortages, inflationary pressures and other supply chain bottlenecks that have crippled its expansion. Nevertheless, as its CEO Colin Angle puts it, “the growth track for robotic floor care remains fundamentally sound.”

iRobot’s recently released second quarter results were $255.4 million, down 30.2% from the prior year period. The crisis was affected by delays, order reductions and cancellations from various retailers in major markets. The company is looking to effectively align cost structures with near-term sales to improve results.

Although the company is currently struggling, investors should look beyond the short term and focus on its long-term growth track. Research suggests that the robot cleaning market is expected to grow by 22.3% from 2022 to 2030.

Intuitive surgery (ISRG)

A sign with the Intuitive Surgical logo standing outside a company office.  ISRG action.

Source: various photographs / Shutterstock.com

Robotics-surgery manager Intuitive surgery (NASDAQ:ISRG) has been an incredible wealth builder since its IPO in 2000.

It markets and develops its flagship da Vinci robotic surgical systems, which offer a broad ecosystem of services including monitoring tools, imaging, instruments and other related items to provide minimally invasive care.

Operating results appeared to be on track after the pandemic subsided, but current economic headwinds have stalled its progress. Its second-quarter results are well below estimates, and third-quarter estimates aren’t looking pretty either.

Nevertheless, its da Vinci installed base increased by 13% compared to the second quarter of 2021. Moreover, its installed base improved by 35.4% compared to the second quarter of 2019. Moreover, its gross margins and EBITDA of 68% and 34%, respectively, are extraordinary.

Fanuc (FANUY)

a robotic hand reaching out to a human hand on a black background, with pointing fingers touching

Source: shutterstock.com/sdecoret

Fanuc (OTCMKTS:FANUY) is a Japan-based industrial robotics leader with manufacturing facilities in Germany, the United States, China and Japan. Its products are used for a variety of purposes, including food, automotive and semiconductor production.

A look at its strong fundamentals shows that the company has delivered consistent performance over the past few years. The company boasts impeccable margins, with an increase of almost 8% in free cash flow margins over the past five years.

FANUC has a diversified revenue base but generates around 50% of its sales in its home country and China. Both markets are believed to be key players in the booming industrial robotics space, with a recently released study claiming that the Chinese robot market is expected to grow by 18.3% from 2020 to 2025.

Teradyne (TER)

a technician lowering an exploratory robot into the ocean at dawn

Source: shutterstock.com/Opsorman

Teradyne (NASDAQ:TER) is a world leader in the design and development of semiconductor test equipment and automation solutions.

It also has an innovative software stack that allows customers to maximize production capacity. Its solutions allow customers to save time, speed up testing and effectively increase accuracy. As the robotics industry continues to grow, so will the need for Teradyne’s testing equipment and services.

Last year was incredible for the company, with non-GAAP sales and earnings per share up 19% and 29%, respectively. It is well positioned in two main sectors: industrial automation and semiconductor testing.

Specifically, the industrial automation business is running at full steam and the company expects the division to grow significantly by 40% per year through 2024. As a result, demand for Teradyne’s products will remain probably impressive in the long run.

UiPath (PATH)

The UiPath logo on a smartphone in front of a computer screen.

Source: dennizn/Shutterstock.com

UiPath (NYSE:PATH) is a robotic process automation specialist that has been a growth juggernaut in its niche.

It deploys bots that effectively automate different business processes through low-code software. So far, he has been incredibly successful in increasing his top and bottom numbers even in the toughest times.

The ability to automate repetitive tasks without programming skills holds incredible relevance today and beyond.

It recently released another explosive quarterly report, despite currency headwinds. Revenue rose 24% to $242.2 million, well above consensus estimates of $230.8 million. Perhaps most importantly, annual recurring sales topped $1 billion for the first time, with a massive 44% growth.

Additionally, net dollar retention rates increased by more than 132%. Investors seem to be looking at his relatively weak forecast, but if they zoom out and look at the bigger picture, they’re likely to buy UI stocks at current levels.

Siemens (HEAD OFFICE)

a robot built in the essence of a human raising his hand to his chin involving deep thinking

Source: Phonlamai Photo / Shutterstock.com

Siemens (OTCMKTS:HEAD OFFICE) is one of the leading electronics conglomerates. Moreover, it is one of the providers of electricity, health care, automation and energy.

Its business has colossal growth ahead, exposing it to some of the biggest secular growth opportunities, including electrification, automation and infrastructure modernization.

Recently, the company planned to move in new directions, dividing its focus into two different segments and becoming a major player in automation. The goal is to provide a holistic solution to customers in digitizing various manufacturing processes, covering virtually every part of the supply chain.

It plans to become a major player in the robotics niche and has recently built its robotics AI platform to complement its hardware offerings. Although the division does not contribute much to its revenue, the scenario might change in the future.

Nvidia (NVDA)

Close up of mobile phone screen with nvidia corporation logo on computer keyboard.  NVDA stock.

Source: Shutterstock

Nvidia (NASDAQ:NVDA) is one of the most diversified technology giants, with its tentacles in various profitable technology sectors.

Robotics has been of major interest to the company, given the sector’s superb expansion during the pandemic.

Robotics has been at the heart of Nvidia’s line of Jetson embedded chips. The product line is equipped with AI and machine learning software, with multiple use cases in robotics, autonomous vehicles, manufacturing, and more.

Perhaps Nvidia’s greatest advantage in pure robotics games in AI and many related industries. Semiconductors are the foundation of all technology, and Nvidia is leading the way. Additionally, the company has invested in robotics startups such as Robotics ready and Serving robotics to further improve their skills.

As of the date of publication, Muslim Farooque had (neither directly nor indirectly) any position in the securities mentioned in this article. Opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines

Muslim Farooque is a passionate investor and an optimist at heart. A long-time gamer and tech enthusiast, he has a particular affinity for analyzing tech stocks. Muslim holds a Bachelor of Science in Applied Accounting from Oxford Brookes University.

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