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Robotics and artificial intelligence have not only revolutionized industries across the globe but also sparked a significant surge in investment interest. As investors seek to capitalize on this transformative trend, identifying the most promising stocks to watch becomes crucial. In this article, I will focus on the top five robotic stocks that investors should keep on the radar for future growth
1. Rockwell Automation (ROK)
The first company on the list is Rockwell Automation (ROK). The company offers a comprehensive suite of robotics products, including robotic arms, controllers, software, and vision systems. They also possess a deep understanding of integrating robotics with other automation technologies, such as machine vision, motion control, and data analytics.
What's impressive about the company is its remarkable history spanning over 120 years. Originally founded in 1903 as the Compression Rheostat Company, it transitioned to focus on manufacturing software and technology during the 1990s. Rockwell Automation holds a strong presence in a diverse range of industries, including automotive, aerospace, food and beverage, and healthcare.
As of July 25, ROK trades for $337.89. The stock is up 30.9% YTD and gained 83.6% over 5 years. Analysts have an average target price of $313 and a high of $383. I see this as a great stock to keep on my watch list.
2. Deere and Company (DE)
The next company might seem to come out of left field, or rather, the corn field. That company is Deere and Company (DE), better known to many as John Deere. While most of us recognize them for manufacturing agricultural and forestry equipment, they are also at the forefront of agricultural robotics. Deere and Company is making significant investments in research and development for autonomous tractors, robotic harvesters, and robotic weeders.
Through the automation of tasks traditionally performed by humans, John Deere's robots are freeing up farmers to focus on other essential aspects of managing their businesses. Furthermore, these innovative robots are contributing to environmental conservation by utilizing less energy and water compared to conventional agricultural practices. As a result, John Deere's cutting-edge robotics is not only boosting productivity but also helping to reduce the overall environmental impact of agriculture.
John Deere is a relatively old company, founded in 1837. However, they have only recently begun to invest heavily in robotics. In 2017, they acquired Bear Flag Robotics, a startup that develops autonomous driving technology for agricultural equipment. This acquisition has helped John Deere accelerate the development of their robotic technology.
As of 25 July, DE is trading at $446.33 and only up 5.19%YTD, but their 5 year gain is over 217%.
People need to eat, and farming will only become more important over time. This is a stock with long-term potential, for sure.
3. Tesla (TSLA)
I probably don’t need to explain why Tesla (TSLA) is going to be a powerhouse in robotics. However, for those of you who need a refresher, their vehicles practically fall into the realm of robotics due to their near full capability of self-driving. And they are the leading reason for the US having as many industrial robots as we have, as they have invested heavily in automating their production lines.
Tesla's recent announcement of the humanoid-like robot called Optimus has been a remarkable development. The beauty of this robot lies in its use of the same autopilot software developed for their cars, demonstrating Tesla's prowess in leveraging existing technology across various domains.
As of July 25, TSLA is trading at $265.28. They are up 145.4% YTD, and gained 1,239% over 5 years.
4. Zebra Technology (ZBRA)
My next company is Zebra Technology (ZBRA), a prominent player in the automatic identification and data capture (AIDC) industry. They offer a wide range of products and services, including mobile computers, autonomous mobile robots, collaborative robots, and vision-guided robots.
A significant milestone in their robotics journey was marked in 2019 when they acquired Fetch Robotics, enabling them to enhance their capabilities in autonomous mobile robots and rounding out their portfolio. With this strategic move, Zebra Technology has become a formidable contender in robotics for manufacturing and warehouse management.
As of July 25, ZBRA trades for $301.43, and is up 15.85% YTD and 114.5% over 5 years.
The analysts have this company as a strong buy with plenty of upside given with their forecasts.
5. ABB Limited (ABBNY)
ABB Limited (ABBNY) is a Swiss multinational conglomerate specializing in robotics, power, automation, and electrification. With a long history of innovation, they have firmly established themselves as a leader in the robotics industry. ABB’s robotics division primarily caters to manufacturing, logistics, healthcare, and energy sectors. However, it's their foray into the construction domain that piques my interest the most. ABB is at the forefront of robotic 3D printing and prefab construction, a transformative area that is poised to revolutionize the construction industry.
ABB is also a key supplier to China and the world. While they may not be well-known to most of us, they touch on so many sectors with robotics that they stand to gain in many ways over the next several years.
As of July 25, ABBNY trades for $40.65, and is up 32.07% YTD and 84.69% over 5 years.
Conclusion
The world of robotics is brimming with potential, and keeping a keen eye on these top five robotic stocks could prove to be a prudent choice for those seeking to ride the wave of technological advancement and seize opportunities in the ever-evolving landscape of the robotic industry.
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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.