UBS recently reaffirmed its bullish stance on the industrial automation sector, pointing to a long-term structural shift driven by labor shortages, rising productivity demands, and under-penetration of automation technologies. “While macro challenges cause investment decisions to take longer, the structural growth picture seems intact, with a low automation penetration rate and labor force pressure the main drivers,” noted Sven Weier, a senior analyst at UBS. His comments reflect findings from recent global surveys indicating that the appetite for automation, especially in logistics, manufacturing, and distribution, remains strong despite near-term caution.
As global industries confront persistent labor constraints and pressure to increase operational efficiency, automation is quickly evolving from a cost-saving tactic to a competitive necessity. Technologies such as robotics, AI-enabled vision systems, motion control platforms, and industrial software are becoming critical components of modern supply chains. Companies that lead in these areas are not only enabling smarter factories but also reshaping the future of how goods are produced, moved, and delivered.
In this article, we highlight the 10 best industrial automation stocks to buy for the next decade. These companies are well-positioned to capitalize on secular tailwinds and offer investors long-term exposure to one of the most transformative themes in the global economy.
A technician in a factory setting next to an industrial automation machine.
Our Methodology
To identify the best industrial automation stocks for long-term investment, we focused on firms that operate in key segments of the automation value chain, including robotics, industrial software, AI-enabled systems, and logistics automation, which are benefiting from strong secular tailwinds such as labor shortages and increasing demand for productivity. From this universe, we selected 30 stocks that fit the thematic profile and then ranked them based on hedge fund sentiment.
Note: All data was recorded on July 16, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Trimble Inc. (NASDAQ:TRMB)
Number of Hedge Fund Holders: 39
Trimble Inc. (NASDAQ:TRMB) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. JPMorgan has raised its price target on Trimble Inc. (NASDAQ:TRMB) to $95 from $88, maintaining its Overweight rating on the stock. The investment bank cited growing strength in the broader machinery group, driven by a mix of favorable legislative developments and macroeconomic shifts.
According to JPMorgan analysts, the recent passage of the “One Big Beautiful Bill”, which restores 100% bonus depreciation, has revived investor enthusiasm for capital-intensive sectors. This, combined with the delayed implementation of key tariffs and increasing confidence in forthcoming interest rate cuts from the Federal Reserve, has created a tailwind for machinery and equipment names.
Historically, machinery stocks have performed well ahead of initial rate cuts, and JPMorgan believes this cycle will follow the same pattern. As such, the firm is recommending that investors increase exposure to the sector, with Trimble Inc. (NASDAQ:TRMB) standing out as a top pick.
Trimble shares have already seen notable gains in recent weeks, reflecting optimism about demand recovery and structural investment in automation technologies across industries. With a strong presence in construction tech, geospatial software, and precision agriculture, Trimble is positioned to benefit from long-term infrastructure modernization and digital transformation trends.
Trimble enables industrial automation through advanced GPS, construction tech, and geospatial software critical to precision workflows in manufacturing and infrastructure.
9. Emerson Electric Company (NYSE:EMR)
Number of Hedge Fund Holders: 39
Emerson Electric Company (NYSE:EMR) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. Stephens analyst Tommy Moll has raised the price target on Emerson Electric Company (NYSE:EMR) to $145 from $130, maintaining an Equal Weight rating in anticipation of the company’s upcoming second-quarter earnings release.
In a research note issued to investors, Moll acknowledged lingering concerns surrounding tariff policy and its impact on the electrical equipment and multi-industry sectors. However, he noted that sentiment appears to be improving compared to the first quarter. Key indicators, such as pricing discipline and order trends, are showing resilience.
“Price realization is largely tracking expectations, and underlying demand has proven more stable than initially forecast,” Moll stated. He also pointed out that Emerson’s diversified end-market exposure, including energy, process automation, and climate technologies, has helped buffer macroeconomic volatility.
Emerson has increasingly positioned itself at the forefront of industrial automation, bolstered by its acquisition of AspenTech and investments in intelligent control systems. These strategic moves reflect the company’s broader push into digital transformation initiatives, especially in sectors like chemical processing, manufacturing, and infrastructure.
The upward revision comes as investors look for clarity on how global supply chain normalization and evolving trade dynamics will affect capital spending. Emerson is scheduled to report Q2 earnings in early August.
Emerson Electric Company (NYSE:EMR) drives industrial automation through advanced control systems, sensors, and software that optimize manufacturing and energy processes across global industries.
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