Diverse newcomer
There are other kinds of robots out there, and not all of them are involved in medical procedures with a risk of death. For example, iRobot Corporation (NASDAQ:IRBT) is coming out with a medical telepresence device. This is basically a screen mounted to a base that will probably have some medical devices. The base can move around like the Roomba and navigate to a patient’s room. From a remote area, a doctor can meet the patient. The benefit is the reduced doctor fatigue, and allows patients to meet a doctor faster.
I do not see telepresence machines as a replacement for humans, but a tool to keep things efficient. You can have less doctors on staff with these machines, but meeting in person will still be important. Doctors will continue making rounds, but if the patient has a problem, then they can consult a doctor quickly.
The telemedicine machine is only one small part of the company. It is involved in telesecurity robots as well, which I think is a less worrisome use for some people. The company is trying to bring these robots to a lot of industries, while making them cheaper. Cheaper will make them ubiquitous. Most of the other applications like defense and security, or submersible robots, are in the very early stages. The most important segment is the consumer segment, which remains fairly robust. There do not seem to be too many other competitors out there either. If not the Roomba, then what?
The entry into security and medicine will overtake the consumer segment in my opinion. I imagine the margins will be larger along with a larger market for replacement parts and support contracts. Those segments will help iRobot Corporation (NASDAQ:IRBT) grow up instead of being a consumer electronics novelty.
Conclusion
All three companies here have great potential. Intuitive offers some risk due to the issues surrounding it, but I think its long-term trajectory is up. With its diversity and new ventures, iRobot Corporation (NASDAQ:IRBT) can make some real headway for revenue growth and profits. It is possible for iRobot Corporation (NASDAQ:IRBT) to become a large cap stock in the future, and you might want to be there when it is.
I think telemedicine and other applications will offer a lot of high margin business for the company, because it seems so far ahead of the competitions. McKesson is the buy-and-forget stock, and I do not think there are any real issues regarding the company. Gains will not be huge, but they will be regular and sustainable.
Nihar Patel has no position in any stocks mentioned. The Motley Fool recommends Intuitive Surgical, iRobot , and McKesson. The Motley Fool owns shares of Intuitive Surgical. Nihar is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Lucrative Healthcare Stocks for Your Portfolio originally appeared on Fool.com is written by Nihar Patel.
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