In this article, we discuss the 5 best automation stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to 14 Best Automation Stocks To Buy Now.
5. Teradyne, Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 38
Teradyne, Inc. (NASDAQ:TER) makes and sells automatic test equipment. It operates from Massachusetts. On December 11, investment advisory Deutsche Bank maintained a Hold rating on Teradyne, Inc. (NASDAQ:TER) stock and raised the price target to $100 from $95.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm ARK Investment Management is a leading shareholder in Teradyne, Inc. (NASDAQ:TER) with 1.4 million shares worth more than $142 million.
4. Emerson Electric Co. (NYSE:EMR)
Number of Hedge Fund Holders: 53
Emerson Electric Co. (NYSE:EMR) is a technology and engineering company that provides various solutions for customers in industrial, commercial, and residential markets. On November 10, Stephens analyst Tommy Moll maintained an Overweight rating on Emerson Electric Co. (NYSE:EMR) stock and lowered the price target to $105 from $120, noting the updated target reflected models for fourth quarter results.
At the end of the third quarter of 2023, 53 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Emerson Electric Co. (NYSE:EMR), compared to 49 in the preceding quarter worth $1.7 billion.
3. Alteryx, Inc. (NYSE:AYX)
Number of Hedge Fund Holders: 53
Alteryx, Inc. (NYSE:AYX) engages in the analytic process automation business. On December 16, investment advisory Needham maintained a Buy rating on Alteryx, Inc. (NYSE:AYX) stock and raised the price target to $56 from $42, noting the price target increase reflected mid-teens ARR growth, operating margin expansion, and ramping free cash flow margin of the firm.
At the end of the third quarter of 2023, 53 hedge funds in the database of Insider Monkey held stakes worth 782 million in Alteryx, Inc. (NYSE:AYX), compared to 39 the preceding quarter worth $565 million.
In its Q2 2023 investor letter, Madison Investments, an asset management firm, highlighted a few stocks and Alteryx, Inc. (NYSE:AYX) was one of them. Here is what the fund said:
“In Technology, our overweight was a sail in the wind, but two stocks disappointed: Alteryx, Inc. (NYSE:AYX) and Ciena (CIEN). Although we continue to hold both stocks, we are closely monitoring the developments at AYX. Some investors fear the rise of artificial intelligence (AI) may pose a headwind to AYX. Although the evidence for this thesis is thin, we will not hesitate to cut our losses should we find this to be the case. Ciena’s fundamentals continue to recover but investors are concerned that the large backlog the company is currently monetizing will not be replenished quickly enough. We believe these fears are unjustified and continue to like this business in the long run as this business is an underappreciated beneficiary of AI infrastructures build outs.”
2. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 60
Honeywell International Inc. (NASDAQ:HON) operates as a diversified technology and manufacturing company worldwide. On December 11, investment advisory Bank of America maintained a Buy rating on Honeywell International Inc. (NASDAQ:HON) stock and lowered the price target to $250 from $265, noting that the active mergers and acquisitions strategy of the firm was positive and the lower target reflected multiple derating.
At the end of the third quarter of 2023, 60 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in Honeywell International Inc. (NASDAQ:HON), compared to 61 in the previous quarter worth $2.5 billion.
1. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 78
Intuitive Surgical, Inc. (NASDAQ:ISRG) develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care. On December 12, investment advisory Truist maintained a Buy rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) stock and raised the price target to $375 from $320, noting that China and Bariatric headwinds ultimately were manageable and transient for the firm.
At the end of the third quarter of 2023, 78 hedge funds in the database of Insider Monkey held stakes worth $5 billion in Intuitive Surgical, Inc. (NASDAQ:ISRG), compared to 68 in the preceding quarter worth $3.4 billion.
In its Q3 2023 investor letter, ClariVest Asset Management, an asset management firm, highlighted a few stocks and Intuitive Surgical, Inc. (NASDAQ:ISRG) was one of them. Here is what the fund said:
“Intuitive Surgical, Inc. (NASDAQ:ISRG) provides robotic-assisted surgical solutions and invasive care through a comprehensive ecosystem of products and services. Management expects the backlog of deferred surgical procedures to take several quarters to recover, with bariatric surgery growth potentially slowing down with the increasing use of weight loss drugs.”
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 10 Best Blue Chip Dividend Stocks Hedge Funds are Buying.
