TXT

3 Robotics Stocks That Could Be Multibaggers in the Making: March Edition

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The U.S. economy is demonstrating remarkable resilience and strength, buoyed by robust job market performance and resilient consumer spending. Despite concerns over inflationary challenges, markets are navigating these shifts adeptly. This news spells good for innovation within the technology industry — robotics stocks are primed to benefit. The Covid-19 pandemic had many businesses embracing automated workflows, propelling demand for automation systems. The global robotic process automation market is expected to grow at a staggering CAGR of 39.9% until 2030, driven by this surge in automation adoption. The rising use of cutting-edge technologies such as AI in robotic process automation software is fueling the market’s growth. These three robotics stocks will skyrocket in value at least until 2030 — they are leading the revolution.

Textron (TXT)

Bell Boeing V-22 Osprey shown during a flight demo.

Source: Angel DiBilio / Shutterstock.com

Textron (NYSE:TXT) is an American industrial conglomerate with many promising projects in combat robotics. TXT is currently trading at $96.11 and is up 19.5% YTD. 

The company experienced previous success with various U.S. military bids. This has translated to a stellar Q4 2023 where Textron reported EPS of $1.01, up 30% YOY. Textron also boasts an aviation backlog of $7.2 billion, up $782 million from the prior year. Management expects continued growth, with the company forecasting 2024 revenues of $14.6 billion, up from $13.7 billion in 2023. 

Textron’s recent contract wins include its M5 Ripsaw platform being selected for testing by the U.S. Army. This unmanned robotic platform closely resembles a tank and is part of the Army’s Robotic Combat Vehicle Program. Currently in Phase I of the program, vehicle deliveries are expected this year. Textron’s participation signifies the possibility of additional future contracts. Furthermore, the company was recently awarded a $455 million contract to supply 12 H-1Z helicopters to the government of Nigeria.

UiPath (PATH)

In this photo illustration the UiPath (PATH) logo is displayed on a smartphone.

Source: rafapress / Shutterstock.com

UiPath (NYSE:PATH) stands at the forefront of automation software. It is pioneering transformative solutions in robotic process automation (RPA) to streamline business workflows. Its stock has surged 42.82% over the past year and analysts are still bullish. With a median price target of $28.00, reflecting a 21.37% increase from current levels, the stock exhibits promising growth prospects.

UiPath has benefited tremendously from these trends and has positioned itself as a leader in the industry. In its most recent quarterly statement, Q4 FY2024, the company reported record quarterly revenue of $405 million, a 31% increase YOY. Additionally, UiPath achieved its first year of GAAP profitability as a public company, indicating that the company’s fundamentals are stabilizing. 

Moreover, UiPath remains committed to advancing its software capabilities and maintaining its edge in AI-driven automation. Recently, the company unveiled a new family of large-language models that will enhance the functionalities of the Uipath Platform, empowering businesses to tackle diverse business challenges. Unlike general-purpose GenAI models like GPT-4, UiPath’s large language models are trained for specific tasks, allowing them to effectively understand documents and provide meaningful output. 

ABB (ABBNY)

ABB Robotics, Inc. training center in suburban Detroit.

Source: Daniel J. Macy / Shutterstock.com

ABB (OTCMKTS:ABBNY) offers electrification, motion and automation products across a wide range of industries including utilities, transport and infrastructure. The company’s Robotics & Discrete Automation segment builds industrial robots, autonomous mobile robots and robotic solutions. ABB’s stock has already climbed 45.33% in the past 12 months, trading close to its all-time high, making it an ideal investment option among robotics stocks. 

For the full year of 2023, the company reported robust earnings. Some highlights include $32.2 billion in revenue and Basic EPS of $2.02, representing growth of 9% YOY and 55% YOY respectively. In addition to strong growth, ABB also boasted a solid balance sheet. After decreasing net debt to $1.991 billion, comparable to $2.779 billion in 2022, ABB has a net debt-to-equity ratio of only 0.14.

Moreover, the company is expanding its offerings through strategic acquisitions. Most recently, ABB acquired Sevensense, a leader in AI-based 3D vision navigation technology. Sevensense enables unparalleled speed, accuracy and autonomy in mobile robots, and its acquisition highlights ABB’s commitment to innovative AI solutions. ABB plans on integrating Sevensense’s technology into its portfolio, expanding ABB’s leadership in AI-enabled mobile robotics. 

On the date of publication, Michael Que did not have (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.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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