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10 Best Robotics and Automation Stocks To Buy That Are On Sale

From warehouse automation to autonomous defense systems, these 10 robotics and automation stocks have suffered steep share-price declines despite continued technological and commercial developments.

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Robotics and automation have become increasingly important areas of investment as manufacturers, logistics operators, and businesses turn to intelligent systems to improve productivity. Yet the expansion of the industry has not translated into consistent stock-market gains for every company involved. Several prominent robotics and automation stocks have fallen more than 30% from their 52-week highs, raising questions about the gap between the industry’s long-term potential and the financial performance of individual businesses. Access our meticulously compiled list of the 10 Most Profitable Stocks of the Past 5 Years to see which companies are generating the most profits.

However, it is significant for investors to note that the underlying demand for automation is continuing to expand. According to the International Federation of Robotics, factories worldwide installed more than 600,000 industrial robots in 2025, an increase of 11% from the previous year. The global operational stock reached approximately five million robots, while the United States overtook Japan to become the world’s second-largest market for industrial robot installations. You can also take a look at the 10 Best Autonomous Vehicle Stocks To Buy Backed by Hedge Funds to see hedge funds’ favorite robotics stocks. Autonomous vehicles are a specific kind of robots that are on wheels after all.

Artificial intelligence is also extending automation beyond conventional manufacturing applications. Autonomous warehouse systems, surgical robotics, intelligent sensors and unmanned defense platforms represent different approaches to applying robotics technology commercially. However, the economics of these businesses vary considerably. Some companies already generate substantial revenue and positive cash flow, while others remain dependent on product commercialization, external financing, or the conversion of contracts into sustainable earnings. Check out our list of 10 Fastest-Growing AI Stocks to Buy Now.

For investors, a large decline from a stock’s 52-week high does not necessarily indicate undervaluation, but it makes the company’s underlying financial performance, competitive position, and ability to execute on its growth plans particularly important. With that, let’s look at the best robotics and automation stocks to buy that are on sale.

Our Methodology

To compile our list, we reviewed holdings of robotics and automation-focused ETFs and conducted additional research to identify US-listed companies operating in the industry. Our definition includes industrial robotics, software automation, autonomous systems, and enabling technologies such as motion control, sensing, and machine vision.

We then selected stocks trading more than 30% below their respective 52-week highs as of October 30, 2026, using Yahoo Finance closing-price and 52-week-high data. The qualifying companies were then ranked in ascending order according to the number of hedge funds holding stakes in them, based on Insider Monkey’s hedge fund ownership data as of Q2 2026.

Why do we care about what hedge funds do? 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 612.3% since May 2014, beating its benchmark by 375 percentage points (see more details here).

10 Best Robotics and Automation Stocks To Buy That Are On Sale

10. Red Cat Holdings, Inc. (NASDAQ:RCAT)

Decline From 52-Week High: 75.35%

Number of Hedge Fund Holders: 20

Red Cat Holdings, Inc. (NASDAQ:RCAT) has been expanding its position in autonomous defense technology through its unmanned aircraft systems and related robotic platforms. Its Black Widow drone has been an important part of that effort, particularly as the company works to establish a larger presence in US military procurement.

The company secured a $9.5 million US Army purchase order in May 2026 and subsequently received a $2.49 million US Air Force contract for Black Widow systems and related support. These awards demonstrate progress in attracting government customers, although the Air Force contract covers an operational assessment rather than a commitment to broader deployment.

Red Cat’s commercial progress has also been accompanied by significant financial challenges. Second-quarter revenue reached $20.2 million, reflecting growth of a whopping 527% compared to the prior year period. However, its GAAP gross margin was just 16.1%, up 39% year-over-year, while the company reported a net loss of $35.3 million.

For investors, the issue is whether growing defense orders can translate into more profitable production at scale. Red Cat’s steep share-price decline reflects the importance of evaluating its commercial achievements alongside its still-developing earnings profile. For more insight into the AI sector, read our comparative article on Microsoft vs. Amazon: Is AMZN’s AI Growth Being Undervalued by Investors?

9. Ondas Inc. (NASDAQ:ONDS)

Decline From 52-Week High: 58.64%

Number of Hedge Fund Holders: 22

Ondas Inc. (NASDAQ:ONDS) has increasingly positioned itself around autonomous defense and security systems, expanding its operations through acquisitions and a growing portfolio of aerial and ground-based technologies. The company’s investment case rests partly on the breadth of this portfolio, although that expansion also makes its financial performance more complicated to assess.

In October, Ondas announced more than $165 million in additional orders, bringing total orders secured since June 30 to more than $270 million. This followed a second quarter in which revenue reached $83.8 million, compared with $6.3 million a year earlier.

READ ALSO: 10 Fastest-Growing AI Stocks to Buy Now

However, the reported increase needs to be considered alongside the company’s acquisition activity. On a pro forma, same-portfolio basis, management reported second-quarter revenue growth of 85%, substantially below the growth implied by comparing reported revenue across the two periods.

Ondas also recorded a second-quarter net loss of $89.7 million, and so the investment case depends on more than contract momentum. Investors must evaluate whether the expanded business can integrate its acquired operations, fulfill orders efficiently, and turn a larger revenue base into sustainable profitability.

8. Ouster, Inc. (NASDAQ:OUST)

Decline From 52-Week High: 53.38%

Number of Hedge Fund Holders: 31

Ouster, Inc. (NASDAQ:OUST) offers exposure to an important part of the robotics industry without manufacturing the robots themselves. Its LiDAR sensors help autonomous machines understand their surroundings, making the technology relevant to industrial automation, warehouse operations, and intelligent transportation. The company’s unified sensing and perception platform combines high-performance digital lidar, AI compute, cameras, sensor fusion and perception software, and cutting-edge AI models.

A significant development in Ouster’s strategy was its February acquisition of Stereolabs, which expanded its portfolio into stereo cameras, AI vision, and perception software. The combination gives Ouster a broader offering for robotics developers that require multiple sensing technologies.

There is evidence of commercial traction as well, as the company reported that its revenue for fiscal Q2 increased 56% year over year to $55 million, while shipments exceeded 17,000 total sensors shipped. GAAP gross margin improved to 49%, up 400 bps year over year and up 600 bps sequentially, suggesting progress in the economics of its hardware business.

Nevertheless, Ouster reported a GAAP net loss of $18 million, which translates into an improvement of $2 million year over year. Its acquisition also means investors need to distinguish growth in the existing business from revenue added through Stereolabs. Keeping these dynamics in view, investors need to direct their attention to whether Ouster can turn its expanded sensing portfolio and rising shipment volumes into consistently positive earnings.

READ ALSO: Billionaire Howard Marks’ AI Warning and 10 Non-AI Stock Picks

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