Stocks to buy

The 3 Most Undervalued Robotics Stocks to Buy in September 2023

The technology sector will always be a sector of constant growth and never stop, why? Well, I believe that our society will always be in continuous development and search for technological improvement day after day. The advancement of AI is leading to widespread disruption and improved productivity. There’s no sign of this trend slowing down, but rather, I believe that it will increase and gain momentum exponentially. This has led to the rise of robotics stocks.

Automated processes are already part of our routine, we have artificial intelligence, robotics, and other technologically advanced sectors that are here to stay. Within the robotics sector, there are companies doing an incredible job, with amazing developments and wonderful processes.

As a sample of this, here I bring you 3 robotics stocks that have participated in this sector, it is worth looking at and analyzing them.

Rockwell (ROK)

Rockwell Automation, Inc. (NYSE:ROK) is a global leader in industrial automation and digital transformation. Its focus is on developing technology solutions that improve and simplify industrial processes. Why is it interesting to consider an excellent robotics stock investment that is undervalued? Primarily, this is due to its recent financial performance and exciting breakthroughs.

In terms of their financials, they have shown solid growth with a 13.7% increase in sales compared to the previous year. What is impressive is that this growth is primarily organic, demonstrating its strength in the market. In addition, its annual recurring revenue has increased by an impressive 17% year over year. This makes it one of those robotics stocks you can’t miss out on.

Its earnings per share are also remarkable, with diluted EPS of $3.45, representing an impressive 35% increase. In addition, its adjusted EPS stands at $3.01, up 13% year-over-year. Looking ahead, they have raised their projections for 2023, anticipating sales growth of 14.0% – 16.0% and estimated diluted EPS of $12.46 – $12.86.

In addition to their financial performance, they have signed an exclusive agreement with Infinitum, a company specializing in sustainable engine technology. Together, they are developing cutting-edge low-voltage drive technology that promises to save energy and costs for industrial customers worldwide, while contributing to sustainability by reducing the carbon footprint.

Finally, they have launched the Stratix 5200 series of switches, which feature ease of configuration and security enhancements. These changes offer more options and flexibility to machine builders and industrial customers. This makes it one of those robotics stocks to buy.

IPG Photonics (IPGP)

Source: Shutterstock

IPG Photonics (NASDAQ:IPGP) is a leading player in the world of fiber laser technology. It specializes in manufacturing powerful lasers for various industries, known for its efficiency and environmental friendliness.

Recently, however, the company faced a 10% drop in revenue for the second quarter of 2023 compared to the previous year. Despite this, its gross margin remained healthy at 43.4%, which is encouraging. Operating income also showed a slight increase.

In terms of innovation, they have introduced six new high-efficiency diode laser solutions (DLS-ECO) that promise to revolutionize industrial heating and drying applications. These lasers are incredibly efficient, with energy conversion rates in excess of 52%. They operate without wasting energy in heating surfaces, making them ideal for a variety of applications, such as heating semiconductor wafers and industrial coatings.

They are also pushing the boundaries of battery welding technology. It will introduce a new adjustable mode beam (AMB) laser source that offers a 3 kW single-mode laser beam, significantly improving welding speed in battery manufacturing. These lasers are designed to eliminate weld defects and offer flexibility for a wide range of welding tasks.

Investors view IPG Photonics as an undervalued stock because of its innovative approach, commitment to sustainability, and growth potential in sectors such as battery manufacturing and industrial heating. While recent financial results may raise doubts, the company’s focus on efficiency and innovative technology positions it as a promising player in the stock market.

Teledyne Technologies (TDY)

Source: shutterstock.com/sdecoret

Teledyne Technologies (NYSE:TDY) is a leading technology company with a broad reach in several high-tech areas. Its focus on advanced products and services makes it stand out in the marketplace.

One notable example is Teledyne LeCroy, a business unit of TDY, which has launched the impressive WaveMaster 8000HD, a high-definition oscilloscope platform with state-of-the-art signal analysis capabilities. Exciting is the inclusion of SDA Expert software for serial data analysis, a strategic move that positions them well in the ever-evolving technology market.

Another outstanding achievement comes from Teledyne Controls, a subsidiary of TDY, with its cabin environment monitoring system called ACES. This system has won the prestigious Crystal Cabin Award in the Health and Safety category, being the first cabin air monitoring system certified by the FAA and EASA. ACES is crucial as it allows airlines to ensure the quality of the air passengers breathe during flights, thus addressing a growing concern of travelers.

In financial terms, they are experiencing solid performance. They have reported record quarterly sales of $1,424.7 million, an increase of 5.1% year-over-year, plus equally record earnings per share. With solid operating margins and an optimistic projection for 2023, they have also significantly reduced their debt, showing sound financial management.

As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.

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