In this article, we discuss the 11 best robotics stocks to buy for 2022. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Robotics Stocks To Buy For 2022.
The robotics sector is set for explosive growth in 2022 as new strategies and technological advances lead to a flurry of new activity in the area. According to a report by consulting firm BCG, the global robotics market is set to rise in value from $25 billion in 2021 to nearly $260 billion by 2030. BCG predicts that professional service robots will lead this growth and account for nearly $170 billion of this growth while logistic robots sales are expected to rake in $80 billion in revenue over the period.
Mordor Intelligence, a market research firm, has revealed that nearly 6,000 surgical robots have performed a million operations globally already. The demand for small and compact robots, especially in the medical sector, will also be a key driver of robotics growth in the coming years. The sale of service robots, boosted by demand in the cleaning and care-giving domains, will rise above 1 million units globally as well. The penetration of soft robots will feature in the discussions around the industry too, especially in the context of workforce challenges due to the pandemic.
Boston Consulting Group claims that changing consumer preferences are leading to innovation in the robotics industry. For example, companies are focusing on quick deliveries of customized products. In addition, service robots, which assist with tasks such as personal hygiene, exercise, and meal delivery, are gaining in popularity. Artificial intelligence and chip advances have dramatically improved the human-robot interaction, leading to the removal of Hollywood-inspired apprehensions around machine cities and robot wars.
Those who want to jump on this growth train should consider some of the top robotics stocks to buy now which include Intuitive Surgical, Inc. (NASDAQ:ISRG), Teradyne, Inc. (NASDAQ:TER), and Emerson Electric Co. (NYSE:EMR), among others discussed in detail below.
Our Methodology
The companies that operate in the robotics sector were selected for the list through a careful assessment of business fundamentals and analyst ratings to provide readers with some context for their investment choices.
Hedge fund sentiment was included as a classifier as well. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Photo by Andy Kelly on Unsplash
Best Robotics Stocks To Buy For 2022
11. Fanuc Corporation (OTC:FANUY)
Number of Hedge Fund Holders: N/A
Fanuc Corporation (OTC:FANUY) markets factory automation products. Increasing orders from China have pushed Fanuc Corporation (OTC:FANUY) into the international spotlight in recent years. Some of the products that Fanuc Corporation (OTC:FANUY) markets include servo motors, lasers, robots, compact machining centers, and electric injection molding machines, among others.
The earnings results of Fanuc Corporation (OTC:FANUY) over the past few months show that it is boosting free cash flow generation and improving profitability. Analysts are bullish on Fanuc Corporation (OTC:FANUY) as well. Daiwa analyst Hirosuke Tai recently upgraded Fanuc Corporation (OTC:FANUY) stock to Outperform from Neutral with a price target of 30,000 yen.
Just like Intuitive Surgical, Inc. (NASDAQ:ISRG), Teradyne, Inc. (NASDAQ:TER), and Emerson Electric Co. (NYSE:EMR), Fanuc Corporation (OTC:FANUY) is one of the stocks attracting the attention of growth investors.
10. iRobot Corporation (NASDAQ:IRBT)
Number of Hedge Fund Holders: 14
The most popular product of iRobot Corporation (NASDAQ:IRBT) are the Roomba vacuum cleaners that have captured the North American market and are now growing in popularity overseas as well. Recently, iRobot Corporation (NASDAQ:IRBT) announced Amazon Alexa integration for the vacuums. With the new update, the Roombas will now be able to carry out cleaning using Alexa voice commands.
iRobot Corporation (NASDAQ:IRBT) is using the latest advances in artificial intelligence to make products smarter for consumers. Major hedge funds are bullish on the company. Chicago-based investment firm Citadel Investment Group is a leading shareholder in iRobot Corporation (NASDAQ:IRBT) with 217,366 shares worth more than $17 million.
9. Novanta Inc. (NASDAQ:NOVT)
Number of Hedge Fund Holders: 15
Novanta Inc. (NASDAQ:NOVT) provides electronic equipment and instruments to original equipment manufacturers. The stock is unique because an overwhelming majority of the shares are held by institutional investors. This is generally a reliable indicator of solid fundamentals and long-term growth. 15 hedge funds in the database of Insider Monkey hold stakes worth $98 million in Novanta Inc. (NASDAQ:NOVT).
Novanta Inc. (NASDAQ:NOVT) has made two acquisitions in the past year that will help it improve margins in the next few years. Both purchases were made in July and cost around $300 million combined. The first purchase relates to motion control component manufacturing that Matthijs Glastra, the CEO of Novanta Inc. (NASDAQ:NOVT), believes will help with automation and robotic applications. The second business provides intelligent end-of-arm technology solutions for advanced industrial and surgical robots.
8. ABB Ltd (NYSE:ABB)
Number of Hedge Fund Holders: 19
Bernstein analyst Nicholas Green recently initiated coverage of ABB Ltd (NYSE:ABB) stock with an Outperform rating and a price target of CHF 38, backing the firm to be one of the leading beneficiaries of the “fourth industrial revolution” and urging investors to focus on the “enormous potential” it offered. Jefferies and Morgan Stanley are bullish on ABB Ltd (NYSE:ABB). The company makes and sells robotics, motion, and industrial automation products.
ABB Ltd (NYSE:ABB) recently raised sales and profit targets for 2022 based on positive momentum heading into the new year. 19 hedge funds in the database of Insider Monkey were long ABB Ltd (NYSE:ABB) at the end September with stakes worth $721 million.
In its Q2 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and ABB Ltd (NYSE:ABB) was one of them. Here is what the fund said:
“ABB is a Swiss-based industrial conglomerate. Last year, new management launched a process to improve performance and focus company resources, and it’s paying off. During the quarter, the company reported terrific results exhibiting improvements over both last year’s depressed figures and over the 2019 revenue and profit run rate. Further, management announced plans to simplify the company’s structure by selling off or separately listing several of the company’s non-core businesses.”
7. Omnicell, Inc. (NASDAQ:OMCL)
Number of Hedge Fund Holders: 20
Omnicell, Inc. (NASDAQ:OMCL) provides automation solutions for the health industry. It has spent nearly $200 million to acquire ReCept and MarkeTouch Media in the past few weeks. The former operates in the specialty pharma domain and the latter markets pharma software solutions. Wells Fargo analyst Stan Berenshteyn recently initiated coverage of Omnicell, Inc. (NASDAQ:OMCL) stock with an Overweight rating and a price target of $203, underlining that the firm was a “leader” in the pharma automation sector.
Hedge funds concur with analysts in this regard. Washington-based investment firm Fisher Asset Management is a leading shareholder in Omnicell, Inc. (NASDAQ:OMCL) with 239,720 shares worth more than $35 million.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Omnicell, Inc. (NASDAQ:OMCL) was one of them. Here is what the fund said:
“Other new buys included Omnicell. Omnicell, in the health care sector, is a leading participant in the automation of patient care through management of medication distribution across various points in the healthcare system, from operating rooms to nursing homes and health system pharmacies.”
6. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 27
UiPath Inc. (NYSE:PATH) debuted on the stock market only a few months ago but has already established itself as a hedge fund favorite. 27 hedge funds in the database of Insider Monkey hold stakes worth $3.6 billion in UiPath Inc. (NYSE:PATH). Investment advisors like Wells Fargo and Cowen are bullish on UiPath Inc. (NYSE:PATH) for 2022 based on strong growth catalysts and a solid public track record as a business. UiPath Inc. (NYSE:PATH) provides end-to-end automation services.
One of the reasons why market experts trust UiPath Inc. (NYSE:PATH) to deliver is because of the RPA technology it markets, an automation tool that has an addressable market of around $60 billion and high customer satisfaction. UiPath Inc. (NYSE:PATH) is generating gross margins of over 80% on the product.
In addition to Intuitive Surgical, Inc. (NASDAQ:ISRG), Teradyne, Inc. (NASDAQ:TER), and Emerson Electric Co. (NYSE:EMR), UiPath Inc. (NYSE:PATH) is one of the stocks on the radar of elite investors.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and UiPath Inc. (NYSE:PATH) was one of them. Here is what the fund said:
“We participated in the IPO of UiPath, a developer of software for robotic process automation that uses AI, natural language processing and design to streamline complex processes across a variety of technology environments. The company is an industry leader with a superior solution for leveraging software to optimize workloads. Organizations around the world are beginning to understand the power of automation, with momentum picking up toward fully automating business processes, a $60 billion market today that could grow to $200 billion or more by 2030. UiPath has a unique pricing model, broad partner ecosystem and thoughtful management team supporting one of the strongest growth profiles in technology. Risks we are watching include a partial cloud transition ahead and increased competition from larger software platforms over time.”
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Disclosure. None. 11 Best Robotics Stocks To Buy For 2022 is originally published on Insider Monkey.
