In this article, we will take a look at the 13 most promising robotics stocks according to analysts. To skip our analysis of recent market trends, you can go directly to 5 Most Promising Robotics Stocks According to Analysts.
The objective of the robotics industry is to create intelligent machines that can assist human beings in different ways. For instance, AIBO robot series by Sony Group Corporation (NYSE:SONY) is an autonomous entertainment robot for the home, while Roomba robot vacuums by iRobot Corporation (NASDAQ:IRBT) serve the purpose of home cleaning. Other companies such as Alibaba Group Holding Limited (NYSE:BABA), JD.Com, Inc. (NASDAQ:JD), and Amazon.com, Inc. (NASDAQ:AMZN) are using robots to automate warehouse management and to deliver products to their customers.
According to a research by McKinsey & Company, companies in the industrial world are planning to spend significant amounts on robotics and automation in the next five years with plans to invest as much as one-fourth of their capital spending on automated systems. The retail and consumer goods, among the industrial sectors, is expected to be the biggest spender on automation in the upcoming years. According to the research, activities such as picking, sorting, packing, and transportation from point to point are the tasks that can be automated easily and will see the most investment.
Global robotics has witnessed significant growth in the recent past with technological advancements in the hardware as well as the software arena. The growth has been further fueled by the lockdowns and social distancing measures imposed due to the coronavirus pandemic. The global robotics industry was worth $25 billion in 2021 and is expected to exceed $160 billion by 2030, according to a report by the Boston Consulting Group. You can read more about the robotics industry in our recent article, 12 Best Robotics Stocks To Buy Now.
Robo Global Robotics & Automation ETF, a global ETF that invests in global companies that are involved in robotics, automation, and artificial intelligence has been in circulation since 2013. The ETF generated a return of 26.4% in the first half of 2023 and currently boasts $1.5 billion in assets under management.
In addition to the companies that are part of our list of 13 most promising robotics stocks according to analysts, there are several notable companies that are involved in the robotics and automation industry. This includes industry bigwigs such as NVIDIA Corporation (NASDAQ:NVDA), Honeywell International Inc. (NASDAQ:HON), and Intuitive Surgical, Inc. (NASDAQ:ISRG), among others.
Pixabay / Public Domain
Methodology
We identified companies that operate in the robotics and automation market. This list includes pureplay robotics companies as well as companies that have a robust robotics program in addition to their primary businesses. This list of robotics companies was filtered to remove companies that had a market capitalization below $500 million. The remaining stocks on the list were ranked based on the upside potential according to average analyst target price estimates.
13 Most Promising Robotics Stocks According to Analysts
13. Desktop Metal, Inc. (NYSE:DM)
Number of Hedge Fund Holders: 14
Upside Potential as of July 13: 28.21%
Burlington, Massachusetts-based Desktop Metal, Inc. (NYSE:DM) is a technology company that designs and markets 3D printers, materials, and software for production of industrial, medical, and consumer products. Its systems print metal, polymer, sand, and other ceramics, as well as foam and recycled wood.
In April 2022, Desktop Metal, Inc. (NYSE:DM) announced the launch of the ExOne S-Max® Flex, a robotic 3D printing system that offers an affordable, precise, and robust tool for foundries.
On May 25, Desktop Metal, Inc. (NYSE:DM) announced that it had agreed to merge Stratasys Ltd. (NASDAQ:SSYS) in an all-stock transaction that values the combined company at $1.8 billion. Following the transaction, existing Stratasys Ltd. (NASDAQ:SSYS) will own 59% of the combined company with the remaining 41% owned by Desktop Metal, Inc. (NYSE:DM) shareholders.
12. iRobot Corporation (NASDAQ:IRBT)
Number of Hedge Fund Holders: 17
Upside Potential as of July 13: 29.05%
Bedford, Massachusetts-based iRobot Corporation (NASDAQ:IRBT) is a leading global consumer robot company that designs and builds robots and smart devices for cleaning, mapping, and navigation. Its iconic home cleaning robot vacuum Roomba was launched in 2002 and the company has sold nearly 50 million robots worldwide to date.
On August 5, 2022, iRobot Corporation (NASDAQ:IRBT) announced that it had entered into an agreement with Amazon.com, Inc. (NASDAQ:AMZN) under which the ecommerce giant will acquire the robot company. The transaction comprises of a cash consideration of $61.0 per share and values the company at $1.7 billion.
As of March 31, iRobot Corporation (NASDAQ:IRBT) shares were held by 17 hedge funds with the total shares held by these hedge funds valued at $106 million. Alpine Associates was its largest hedge fund shareholder with ownership of 1.5 million shares valued at $65 million.
11. Helix Energy Solutions Group Inc. (NYSE:HLX)
Number of Hedge Fund Holders: 26
Upside Potential as of July 13: 30.45%
Houston, Texas-based Helix Energy Solutions Group Inc. (NYSE:HLX) is an international offshore energy services company with a focus on well intervention, robotics, and full-field decommissioning operations.
On April 24, Helix Energy Solutions Group Inc. (NYSE:HLX) released its financial results for Q1 2023. Its revenue increased by 67% y-o-y to $250 million, while its net loss shrunk by 88% y-o-y to $5.2 million. Nearly $49 million of the quarterly revenue came from robotics division of the company.
As of Q1 2023, Helix Energy Solutions Group Inc. (NYSE:HLX) shares were owned by 26 prominent hedge funds with a total value of $111 million. Notable hedge fund investors included D E Shaw, Fort Baker Capital Management, and Millennium Management, among others.
10. Ciena Corporation (NASDAQ:CIEN)
Number of Hedge Fund Holders: 32
Upside Potential as of July 13: 30.82%
Based in Hanover, Maryland, Ciena Corporation (NASDAQ:CIEN) is a leading global technology company offering optical and routing systems, services, and automation software. Its solutions are used by communications service providers, cable and multiservice operators, Web-scale providers, submarine network operators, governments, and enterprises across multiple industry verticals.
On June 6, Ciena Corporation (NASDAQ:CIEN) released its financial results for the quarter ended April 29, 2023. Its revenue increased by 19% y-o-y to $1.13 billion while net income surged by 48% y-o-y to $58 million.
Following the earnings release, Raymond James lowered the price target on Ciena Corporation (NASDAQ:CIEN) shares to $63 from $70 but maintained a ‘Strong Buy’ rating for the shares.
9. Adeia Inc. (NASDAQ:ADEA)
Number of Hedge Fund Holders: 17
Upside Potential as of July 13: 33.14%
Adeia Inc. (NASDAQ:ADEA) is a leading research and development and intellectual property licensing company that offers media solutions for use with traditional linear television, direct-to-consumer, and other media services.
On May 8, Adeia Inc. (NASDAQ:ADEA) released its financials for Q1 2023. It generated a revenue of $117 million and a net income of $29 million, which translated to a normalized EPS of $0.48, $0.15 more than the consensus estimates.
On May 4, the Board of Directors of Adeia Inc. (NASDAQ:ADEA) declared a quarterly cash dividend of $0.05 per share. This implies a dividend yield of 1.7% based on the closing share price on July 13.
8. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 30
Upside Potential as of July 13: 33.24%
Tokyo-based Sony Group Corporation (NYSE:SONY) is a multinational conglomerate with operations across consumer electronics, video games, media and entertainment, and financial services, among others.
The robotics portfolio of Sony Group Corporation (NYSE:SONY) dates back to 1999 with the introduction of its first-generation model of the “AIBO” four-legged autonomous entertainment robot. The company has since introduced multiple newer generations of the AIBO robot.
On July 12, Goldman Sachs analyst Minami Munakata upgraded the rating for Sony Group Corporation (NYSE:SONY) shares to ‘Buy’ from ‘Neutral’ and added the stock to the firm’s ‘conviction buy list’. The analyst cited the company’s offerings in the anime and live games markets as the reason for the upgrade.
7. Domo, Inc. (NASDAQ:DOMO)
Number of Hedge Fund Holders: 18
Upside Potential as of July 13: 36.59%
Silicon Slope, Utah-based Domo, Inc. (NASDAQ:DOMO) is a cloud software company that specializes in business intelligence tools and data visualization. Its low-code data app platform allows users to create data apps to automate and streamline any action in their business.
On May 25, Domo, Inc. (NASDAQ:DOMO) released its financial results for the quarter ended April 30, 2023. Its total revenue increased by 7% y-o-y to $79.5 million while it reported a net loss of $24 million.
Following the earnings release, Lake Street analyst Eric Martinuzzi lowered the price target on Domo, Inc. (NASDAQ:DOMO) shares to $20 from $21 but maintained a ‘Buy’ rating.
As of Q1 2023, Domo, Inc. (NASDAQ:DOMO) shares were held by 18 of the 943 hedge funds tracked by Insider Monkey, with a total value of $59 million. D E Shaw was the largest hedge fund shareholder with ownership of 0.64 million shares valued at $9.2 million.
6. Aurora Innovation, Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 21
Upside Potential as of July 13: 38.91%
Mountain View, California-based Aurora Innovation, Inc. (NASDAQ:AUR) is a leading self-driving technology company. It offers Aurora Driver, a self-driving system designed to operate multiple vehicle types, from freight-hauling trucks to ride-hailing passenger vehicles.
Aurora Innovation, Inc. (NASDAQ:AUR) also offers Aurora Horizon and Aurora Connect, its driver-as-a-service products for trucking and ride-hailing. It has partnered with leading transportation companies including Toyota, FedEx, Volvo Trucks, PACCAR, Uber, Werner, Covenant, Schneider, and Ryder, among others.
On June 16, Canaccord Genuity analyst George Gianarikas reiterated a ‘Buy’ rating for Aurora Innovation, Inc. (NASDAQ:AUR) shares with a price target of $5.0 per share. The target price represents a potential upside of nearly 52% based on the share price on July 13.
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