In this article, we will discuss 7 Best Automation Stocks to Buy for Warehouse Construction.
The global economy is being quietly rewired from the ground up, and the action is happening inside a new generation of warehouses that bear almost no resemblance to the storage facilities of a decade ago. That’s the transformative premise behind automation stocks tied to warehouse construction, a sector sitting at the powerful convergence of e-commerce growth, supply chain modernization, and the relentless march of robotics and artificial intelligence into the physical world.
At its core, the investment case is being driven by necessity. The explosion of e-commerce, accelerated permanently by shifting consumer behaviors, has created an insatiable global demand for fulfillment infrastructure that is faster, smarter, and more efficient than anything previously built. Traditional warehouses staffed by manual labor are simply no longer capable of meeting the speed and accuracy expectations of modern supply chains. Instead, automated storage and retrieval systems, autonomous mobile robots, AI-driven inventory management, and smart conveyor architectures are the baseline requirements of competitive logistics operations in 2026 and beyond.
At the same time, the construction pipeline feeding this demand is staggering. Research from CBRE projects that global industrial and warehouse construction will remain at historically elevated levels through the end of the decade, driven by nearshoring trends, last-mile delivery infrastructure, and the buildout of cold chain and pharmaceutical logistics networks. Meanwhile, data from McKinsey underscores that warehouse automation adoption is accelerating sharply, with the majority of large distribution facilities expected to deploy advanced robotics and automated systems within the next five years, representing a capital expenditure wave of enormous proportions for the companies supplying the technology and building the facilities.
Automation stocks exposed to warehouse construction represent one of the most tangible and structurally supported investment opportunities in today’s market. For investors who understand that every next-day delivery promise is ultimately fulfilled by a robot inside a purpose-built automated facility, this sector may be one of the most rewarding and underappreciated themes of the decade.
With this context in mind, here are some of the best automation stocks to buy for warehouse construction.
Our Methodology
We used stock screeners to identify automation stocks with positive upside potential. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in ascending order of their upside potential.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
7 Best Automation Stocks to Buy for Warehouse Construction
7. Rockwell Automation, Inc. (NYSE:ROK)
Upside Potential: 4.53%
Target Price: $467.91
On May 13, TD Cowen raised its price target on Rockwell Automation, Inc. (NYSE:ROK) to $400 from $350 while maintaining a Hold rating on the shares. The firm acknowledged that growth is expected to moderate during the second half of the year but noted that the company’s exit rate appears increasingly favorable. TD Cowen also stated that achieving mid-single-digit to high-single-digit organic growth in 2027 is a realistic expectation, provided broader economic conditions remain stable. While margin comparisons are anticipated to become more challenging next year, the analyst viewed the company’s recent operational progress as encouraging.
On May 6, Barclays increased its price target on Rockwell Automation, Inc. to $480 from $400 and maintained an Overweight rating on the stock. The firm highlighted the company’s strong first-quarter performance, pointing to robust order growth as a key indicator of improving demand trends and strengthening business momentum. The analyst noted that the healthy order environment supports confidence in Rockwell Automation’s near-term outlook and longer-term growth prospects.
Founded in 1903 and headquartered in Milwaukee, Wisconsin, Rockwell Automation, Inc. helps power warehouse construction by providing industrial automation hardware and software. Their technologies control and integrate Automated Storage and Retrieval Systems (AS/RS), conveyor networks, and autonomous mobile robots, significantly optimizing intralogistics, material handling, and supply chain efficiency.
6. Deere & Company (NYSE:DE)
Upside Potential: 10.09%
Target Price: $648.89
Deere & Company attracted analyst attention on June 4 when JPMorgan raised its price target on the stock to $590 from $560 while maintaining a Neutral rating. The firm believes agricultural industry fundamentals are improving and could support a moderate recovery in North America next year. JPMorgan now expects single-digit retail volume growth and modest pricing gains in 2027, reflecting a more balanced outlook for the agricultural equipment market despite ongoing tariff considerations and evolving farm economics.
Earlier, on May 27, Oppenheimer analyst Kristen Owen lowered the firm’s price target on Deere & Company to $680 from $715 while maintaining an Outperform rating. Following extensive discussions with management, the firm noted that near-term share performance could remain influenced by weather conditions and commodity-price movements. However, Oppenheimer continues to view Deere favorably over the longer term and expects business conditions to improve gradually by 2027 as agricultural markets stabilize and demand trends strengthen.
Founded in 1837 and headquartered in Moline, Illinois, Deere & Company is a manufacturer of agricultural, construction, and forestry equipment. The company is also heavily involved in warehouse and industrial site development through its portfolio of earth-moving machinery, including excavators and crawler dozers.
5. Honeywell International Inc. (NASDAQ:HON)
Upside Potential: 14.09%
Target Price: $249.05
Honeywell International Inc. (NASDAQ:HON) received a vote of confidence from Wall Street on June 5 when RBC Capital analyst Deane Dray raised the firm’s price target to $275 from $268 while maintaining an Outperform rating. The analyst expects Honeywell’s Investor Day to serve as a positive catalyst, with management likely outlining a mid-single-digit organic growth framework alongside a compelling margin expansion story. RBC believes Industrial Automation is approaching an important inflection point, with EBITA margins potentially reaching 20%, highlighting the strength of Honeywell’s operational improvement initiatives and the long-term earnings power of its automation businesses.
Earlier, on May 27, Barclays raised its price target on Honeywell to $251 from $243 and reiterated an Overweight rating. The firm pointed to several upcoming catalysts that could unlock shareholder value, including two capital markets days and the planned completion of two corporate spinoffs. Barclays believes these strategic actions could help investors better appreciate the value of Honeywell’s individual business segments and estimates that the stock could experience an additional 10% to 15% upside as the separation process unfolds.
Founded in 1885 and headquartered in Charlotte, North Carolina, Honeywell International is a global leader in industrial automation, aerospace technologies, building solutions, and energy systems. The company plays a significant role in warehouse construction and logistics through its robotics platforms, automated storage and retrieval systems, and Momentum Warehouse Execution System software, which helps customers maximize efficiency, storage density, and order fulfillment speed across increasingly automated facilities.
4. Emerson Electric Co. (NYSE:EMR)
Upside Potential: 17.08%
Target Price: $166.58
On May 27, Emerson Electric Co. (NYSE:EMR) announced a collaboration with Saudi Arabian Oil Company, Aramco, to co-develop advanced corrosion management solutions aimed at enhancing industrial asset integrity and operational efficiency. Under the research and development agreement, Aramco will contribute its technical expertise and intellectual property, while Emerson will provide its ultrasonic online corrosion monitoring technology, wireless connectivity solutions for corrosion wall-thickness monitoring, and continuous data collection capabilities. The partnership is focused on digitalizing corrosion management processes and developing a customized solution tailored to Aramco’s operational requirements.
On May 6, Barclays raised its price target on Emerson Electric Co. to $144 from $140 while maintaining an Equal Weight rating on the shares. On the same day, RBC Capital increased its price target to $169 from $161 and reiterated an Outperform rating following the company’s second-quarter results. RBC noted that proactive cost management initiatives enabled Emerson to raise the lower end of its fiscal 2026 earnings-per-share guidance despite factoring in a one-percentage-point impact from continued Middle East disruptions and reducing its organic sales growth outlook from 4% to 3%. The firm highlighted the company’s operational discipline and resilience in navigating a challenging macroeconomic environment.
Founded in 1890 and headquartered in St. Louis, Missouri, Emerson Electric Co. deals with supplying smart pneumatics, drives, and programmable logic controllers that automate conveyor sorting, packaging lines, and automated storage and retrieval systems (AS/RS) to optimize distribution efficiency.
3. Autodesk, Inc. (NASDAQ:ADSK)
Upside Potential: 28.71%
Target Price: $322.59
Autodesk, Inc. (NASDAQ:ADSK) received additional analyst support on June 1 when Citi raised its price target on the stock to $252 from $246 while maintaining a Neutral rating. The firm viewed the company’s first-quarter results favorably and noted that the acquisition of MaintainX creates a meaningful new growth opportunity. Although Citi highlighted some concerns regarding the pace of growth in Autodesk’s core business, the overall assessment suggests that the company continues to execute effectively while expanding into adjacent markets.
Previously, on May 29, RBC Capital lowered its price target on Autodesk, Inc. to $305 from $335 but maintained an Outperform rating. The firm cited a strong quarterly performance that exceeded expectations and highlighted the company’s $3.6 billion acquisition of MaintainX, the largest transaction in Autodesk’s history. While the acquisition has prompted investor questions regarding future growth and margin profiles, RBC believes any dilution can be absorbed within existing operating-margin targets and views Autodesk as well-positioned to help define the next generation of industrial artificial intelligence solutions.
Autodesk, Inc. is a multinational software company headquartered in San Francisco, California, and was founded in 1982. The company develops industry-leading computer-aided design, engineering, construction, and digital content creation software used by architects, engineers, manufacturers, and construction professionals worldwide.
2. NVIDIA Corporation (NASDAQ:NVDA)
Upside Potential: 33.83%
Target Price: $309.93
NVIDIA Corporation (NASDAQ:NVDA) received support from the analyst community on June 5 when China Renaissance initiated coverage of the stock with a Buy rating and a $319 price target. The initiation reflects confidence in NVIDIA’s dominant position within artificial intelligence infrastructure, accelerated computing, and advanced graphics processing technologies. As AI adoption continues to expand across industries, NVIDIA remains one of the primary beneficiaries of growing demand for high-performance computing solutions.
On May 29, industry publication The Elec reported that the launch timeline for NVIDIA’s Rubin CPX inference-focused graphics processing unit may face uncertainty due to slowing supply-chain activity and the absence of procurement activity for key components. While questions remain regarding the timing of the product’s rollout, the report primarily reflects execution-related considerations rather than any deterioration in NVIDIA’s broader competitive position. The company continues to maintain a robust product pipeline and remains at the forefront of AI hardware innovation.
Founded in 1993 and headquartered in Santa Clara, California, NVIDIA Corporation develops accelerated computing platforms that power artificial intelligence, machine learning, data centers, gaming, autonomous systems, and advanced simulation technologies. Its AI and digital twin platforms are increasingly used to design, model, and optimize complex warehouse and logistics facilities before construction begins, helping businesses improve efficiency while reducing costs and development timelines.
1. Trimble Inc. (NASDAQ:TRMB)
Upside Potential: 36.49%
Target Price: $85.33
On May 29, Barclays lowered its price target on Trimble Inc. (NASDAQ:TRMB) to $79 from $103 while maintaining an Overweight rating on the shares. The adjustment was made as part of a broader update to the firm’s Industrial Technology coverage universe, reflecting revised valuation assumptions and updated forecasts across the sector. Despite the reduction in the price target, Barclays continued to express a favorable view of the company’s long-term prospects through its maintained Overweight rating.
On May 7, Oppenheimer reduced its price target on Trimble Inc. to $80 from $86 while reiterating an Outperform rating on the stock. The firm noted that the shares declined by 7.2% despite the company delivering a stronger-than-expected first-quarter performance and raising guidance. Oppenheimer stated that the underlying fundamentals of the business remain intact and highlighted that the quarterly beat exceeded what is typically seen from the company during the first quarter. While acknowledging limited visibility within the Field Systems segment for the second half of 2026, the firm maintained confidence in Trimble’s broader business outlook and operational execution.
Founded in 1978 and headquartered in Westminster, Colorado, Trimble Inc. accelerates warehouse construction using advanced spatial positioning and Building Information Modeling (BIM). Its automation software and 3D laser scanning tools improve structural design accuracy, optimize site layouts, and streamline the construction of large-scale logistics and fulfillment centers.
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