The advancements in AI and the rapid progress in automation have led to this list of robotics stocks in 2024 for investors to consider. This transformation is not just limited to manufacturing and industrial sectors but has expanded into healthcare and even consumer goods and services.
The robotics stocks discussed in this article are strong buys, as they are the leaders in their respective industries and also trade at attractive valuations.
So here are the best robotics stocks in 2024 for investors to consider adding to their portfolios.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is known for its da Vinci surgical systems. These are medical robots that are designed to assist with a range of medical procedures, and they allow surgeons to perform surgeries with greater precision than what’s possible by hand.
There are a few reasons why I’m bullish on ISRG stock to deliver strong gains for investors. Firstly, the company has experienced a notable increase in da Vinci procedure volume, contributing to a significant rise in its revenue.
There has also been an increase in the number of da Vinci surgical systems placed in healthcare facilities, which is where ISRG stock has the dominant foothold. According to recent statistics, the company controls around 57% of the global market share for surgical robots.
Due to ISRG’s dominant market position, Wall Street expects that its EPS and revenue will surge in the coming years, namely at 14.12% and 14.81%, respectively. Analysts predict that the company’s top line will grow to $12.93 billion by FY2028, up from $8.25 in FY2024.
This then makes it one of those robotics stocks for investors to consider.
iRobot Corporation (IRBT)
iRobot Corporation (NASDAQ:IRBT) has a strong consumer base thanks to the innovative Roomba vacuum cleaners in millions of homes worldwide.
Despite the early commercial success, IRBT has struggled in recent years, but I believe that it can turn itself around and deliver strong growth to investors. The company’s revenues contracted 24.38% in FY2022, and its quarterly reports for FY2023 show similar top-line degradation.
It seems that IRBT has been stretching itself too thin, with many adventurous R&D projects that have diluted its core offering of the Roomba. Therefore, the company is pausing work on non-floorcare innovations such as air purification, robotic lawn mowing, and education to concentrate on its core value drivers in robotic floorcare solutions.
As part of IRBT’s reorganization, it is also undergoing a substantial leadership change. Colin Angle, the company’s co-founder, has stepped down as Chairman of the Board and CEO and an interim CEO has been appointed in this place.
In light of this reorganization, analysts expect that IRBT’s annual revenues will return to the $1 billion level in FY2025 at the earliest, while a progressive EPS improvement is also forecasted.
ABB (OTCMKTS:ABBNY) has a broad portfolio of robotic systems and is known as a key player in robotics systems in the industrial sector.
ABBNY stock could be a good pick for growth this year. Namely, it’s targeting a 5% sales growth in 2024. This growth is partly attributed to their strategy of local manufacturing, which has helped them withstand global challenges like the Red Sea shipping crisis and the U.S.-China rivalry.
Furthermore, ABBNY could be slightly undervalued on both an earnings and revenue basis when compared with its trailing and forward measures and also shows strong gross and operating margins that are above its peers.
With all of these factors considered, ABBNY should be considered by long-term investors.
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.