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.
8. Cognex Corporation (NASDAQ:CGNX)
Number of Hedge Fund Holders: 40
Cognex Corporation (NASDAQ:CGNX) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. Citi has increased its price target on Cognex Corporation (NASDAQ:CGNX) to $37 from $30 while maintaining a Neutral rating, citing cautious optimism heading into the second-quarter earnings season for industrial conglomerates.
In a note to clients, the firm stated that most companies in the sector are likely to post steady results, with modest upward revisions to their 2025 earnings guidance. Cognex, known for its machine vision systems, is expected to benefit from stabilizing demand trends and improving order visibility in the second half of the year. While Citi stopped short of a bullish upgrade, analysts acknowledged that Cognex is better positioned than it was earlier in the cycle, following several quarters of subdued performance. Demand in key verticals, including electronics, automotive, and logistics, has shown signs of gradual recovery.
Cognex has made strategic investments in high-performance image processing and 3D vision technologies, which are increasingly critical in modern manufacturing environments. These capabilities support quality control and precision automation, areas that continue to gain traction globally amid labor constraints and digital transformation initiatives. The revised price target reflects Citi’s view that near-term headwinds are softening and that Cognex could see a more constructive environment going into 2025.
Cognex powers industrial automation through advanced machine vision and barcode reading systems used in precision manufacturing, logistics, and quality control.
7. Lincoln Electric Holdings, Inc. (NASDAQ: LECO)
Number of Hedge Fund Holders: 42
Lincoln Electric Holdings (NASDAQ: LECO) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. Lincoln Electric Holdings (NASDAQ: LECO) received a price target increase from KeyBanc this week, with analyst Jeffrey Hammond raising the target from $225 to $250 while maintaining an Overweight rating on the shares. The move reflects optimism around the company’s strong position in automated welding solutions and the continued growth in demand across industrial end markets.
The updated valuation follows solid execution by Lincoln Electric in expanding its automation portfolio and enhancing profitability through a mix of product innovation and disciplined cost management. Analysts note the company’s exposure to reshoring trends and increased capital spending in U.S. manufacturing as key drivers of long-term revenue growth.
Shares of Lincoln Electric have gained momentum in recent months, outperforming peers amid rising investment in smart factory infrastructure and robotics. The company’s focus on automation-enabling technologies positions it to benefit from both near-term industrial recovery and long-term modernization efforts.
Lincoln Electric produces robotic welding systems and automation tools central to smart manufacturing, making it a core industrial automation stock.
6. Rockwell Automation, Inc. (NYSE:ROK)
Number of Hedge Fund Holders: 46
Rockwell Automation, Inc. (NYSE:ROK) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. Bank of America has upgraded Rockwell Automation (NYSE: ROK) to Buy from Neutral, raising its price target to $410, up from $360. The firm cited improved end-market conditions and a more constructive long-term outlook for industrial automation demand.
In its latest research note, BofA highlighted Rockwell’s strong positioning in high-growth verticals, including discrete manufacturing, energy transition technologies, and digital infrastructure. The firm believes recent softness in orders is nearing an inflection point, with backlogs stabilizing and customer budgets expected to recover in the coming quarters.
Analysts pointed to Rockwell’s continued execution on software and services expansion, particularly through its FactoryTalk and Emulate3D platforms. These digital solutions are playing a key role in enabling predictive maintenance, operational efficiency, and real-time process visibility. The upgrade comes amid growing global investment in factory modernization and automation to counter labor shortages and improve productivity. With a broad product portfolio and strong partner ecosystem, Rockwell Automation, Inc. (NYSE:ROK) is viewed as a key beneficiary of these secular shifts.
Rockwell delivers industrial automation through control systems, software, and sensors that modernize manufacturing, logistics, and energy operations globally.
5. Teradyne, Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 49
Teradyne, Inc. (NASDAQ:TER) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. Teradyne’s Universal Robots division has been identified as the supplier of robotic arms for Amazon’s newly unveiled warehouse robot, Vulcan, according to a report from Hunterbrook Media. This reveals Denmark-based Universal Robots as a key technology partner in Amazon’s latest automation push.
Vulcan is designed to handle tasks such as picking and stowing, integrating advanced touch sensitivity to perform delicate, repetitive movements with higher precision. Though Amazon has not officially confirmed its supplier, the robotic arms match Universal Robots’ design, and are reportedly outfitted with grippers from Robotiq, another firm known for seamless compatibility with Teradyne’s automation products.
Hunterbrook estimates the Vulcan project could be worth as much as $400 million for Teradyne, Inc. (NASDAQ:TER), as Amazon continues to invest in automating logistics for the 14 billion items it handles annually.This development highlights Teradyne’s growing presence in warehouse and supply chain automation, adding another major client to its industrial roster. Shares of Teradyne moved higher following the report’s release.
Teradyne advances industrial automation through collaborative robots and machine testing systems used in manufacturing, logistics, and high-volume warehouse operations.
4. Parker-Hannifin Corporation Inc. (NYSE:PH)
Number of Hedge Fund Holders: 51
Parker-Hannifin Corporation Inc. (NYSE:PH) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. Citi analyst Andrew Kaplowitz has lifted the firm’s price target on Parker-Hannifin Corporation (NYSE:PH) to $831 from $709, while reiterating a Buy rating on the stock. The adjustment comes as part of Citi’s broader outlook revision for the industrial conglomerate space ahead of second-quarter earnings.
Kaplowitz noted that demand trends across the sector have remained resilient despite macro uncertainty. Citi expects most companies in the group to deliver solid Q2 results and offer modest upgrades to their 2025 earnings forecasts. Parker-Hannifin stands out for its strong execution and exposure to long-cycle, high-margin businesses.
The firm pointed to Parker’s expanding footprint in automation, aerospace, and engineered materials as a driver of earnings consistency. Its recent acquisitions, particularly the integration of Meggitt, have strengthened the company’s presence in motion and control technologies used across industrial and defense markets.
Parker has also benefited from increased investment in smart manufacturing, where its hydraulic, pneumatic, and electromechanical systems play a central role in automating complex operations. Margin expansion, disciplined capital allocation, and healthy order backlogs were also cited as tailwinds heading into the second half of the year.
Parker-Hannifin supports industrial automation with motion control systems, sensors, and fluid technologies that drive efficiency in manufacturing and aerospace.
3. PTC Inc. (NASDAQ:PTC)
Number of Hedge Fund Holders: 57
PTC Inc. (NASDAQ:PTC) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. Oppenheimer has raised its price target on PTC Inc. (NASDAQ:PTC) to $190 from $170, maintaining an Outperform rating on the stock. The upward revision reflects improved market multiples and optimism surrounding PTC’s go-to-market (GTM) execution and AI integration plans.
Following a recent conversation with PTC’s management, Oppenheimer noted that the company’s current guidance appears appropriately calibrated to the broader macroeconomic environment. While PTC Inc. (NASDAQ:PTC) remains cautious amid global trade uncertainties, the firm sees a strong foundation for long-term growth.
Analysts pointed to steady customer retention, despite a slight uptick in churn. Pricing remains an area with potential upside, as the company adjusts its sales structure and strategy. Oppenheimer believes the ongoing GTM transition will ultimately improve sales productivity and customer acquisition efficiency. PTC has continued investing in its core digital thread technologies, including CAD, PLM, and IIoT platforms, which are increasingly enhanced by AI. These tools are critical for automating product development, manufacturing workflows, and real-time data analysis across industrial sectors.
With its customer base concentrated in engineering, automotive, and heavy industry, PTC is positioned to benefit from accelerating demand for smart manufacturing solutions and digital automation.
PTC powers industrial automation through software platforms that integrate CAD, IoT, and AI to streamline manufacturing, engineering, and product lifecycle management.
2. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 75
Honeywell International Inc. (NASDAQ:HON) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. Barclays analyst Julian Mitchell has raised the firm’s price target on Honeywell International Inc. (NASDAQ:HON) to $265 from $258, while maintaining an Overweight rating. The adjustment reflects growing confidence in Honeywell’s ability to outperform in a mixed macroeconomic environment.
In a note to clients, Mitchell said the multi-industry group is entering second-quarter earnings with high investor expectations. Despite soft consumer demand, most companies, including Honeywell, are well-positioned to exceed estimates and potentially raise full-year guidance. Still, Barclays noted the sector’s recent rally leaves a more balanced risk/reward setup.
Honeywell’s performance is being buoyed by strong execution across its automation, aerospace, and building technologies segments. The company’s focus on high-margin, recurring revenue from digital solutions has added resilience to its earnings profile. Continued investment in industrial software and process control systems has helped expand its presence in data-driven manufacturing and energy efficiency.
Honeywell’s emphasis on automation is aligned with global trends toward smarter infrastructure and labor-saving technologies. Its portfolio of sensors, industrial controls, and connected platforms plays a crucial role in transforming traditional industrial environments. As Q2 earnings near, investors are watching Honeywell for signals on broader capital spending and industrial demand in the second half of the year.
Honeywell delivers industrial automation through sensors, control systems, and software that optimize factory operations, energy use, and infrastructure performance.
1. Eaton Corporation, PLC (NYSE:ETN)
Number of Hedge Fund Holders: 85
Eaton Corporation, PLC (NYSE:ETN) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. Eaton (NYSE: ETN) announced on Tuesday that it has signed an agreement to acquire Resilient Power Systems Inc., a Texas-based developer of solid-state transformer technology used in high-power direct current (DC) applications. The deal, expected to close in the third quarter of 2025, will strengthen Eaton’s footprint in electrification and grid modernization.
Resilient Power is known for its ultra-compact EV charging depots, which connect directly to the existing grid, allowing for faster and more efficient deployment of electric vehicle infrastructure. Backed by venture capital groups including Energy Transition Ventures, the company’s solutions are already enabling quicker rollouts for EV fleets and public charging networks.
Eaton Corporation, PLC (NYSE:ETN) sees broader potential for Resilient’s technology in future applications, including high-density data centers, port electrification, and battery energy storage systems. Mike Yelton, president of Eaton’s Americas Region Electrical Sector, said the acquisition would combine Resilient’s innovation with Eaton’s global scale, unlocking new efficiencies for customers aiming to improve power distribution reliability.
The acquisition aligns with Eaton’s strategy to accelerate the transition to more efficient, digitized power systems and expand its industrial automation capabilities. The move also highlights growing demand for modular, software-driven power distribution across critical infrastructure sectors.
Eaton automates industrial power systems through smart circuit protection, energy distribution, and grid technologies essential to electrification, EV charging, and infrastructure.
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