Investors are eyeing key robotics stocks in February, as the broader stock market experiences a temporary pullback. The dip, attributed to the likes of Nvidia and others in the tech sector, has done nothing to diminish optimism about the future of tech stocks.
The stocks discussed in this article are poised to deliver significant gains to investors. Their potential for substantial returns in the long run is remarkable. For those who dive in early, the prospect of reaping seven-figure rewards looms large, given the astronomical growth potential of these companies.
Here are some of the top companies investors should consider snagging this month.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is a standout in the robotics healthcare market, making it a favorite for investors wanting to dip their toes in this sector.
In the last quarter, ISRG stock posted robust results, with the potential for even greater performance ahead. The company reported a 6% increase in systems revenue to approximately $480 million for the fourth quarter of 2023, while the full-year 2023 systems revenue matched the 2022 figures at approximately $1.68 billion. The company also upped the number of da Vinci surgical systems placed in 2023 to 1,370 from 1,264 in 2022.
Looking ahead to 2024, ISRG anticipates a 13% to 16% increase in worldwide da Vinci procedures. The consensus among analysts is to “moderately buy,” with 16 buy ratings and 4 hold ratings.
ISRG is expected to continue to dominate the robotic surgery industry, with the potential to maintain its strength in the coming years.
Sarcos Technology and Robotics (STRC)
Sarcos Technology and Robotics (NASDAQ:STRC) is focused on robotics and microelectromechanical systems. The company expects to end 2024 with around $39 million in cash, cash equivalents, and marketable securities. It also foresees net cash usage averaging about $1.6 million per month in 2024, potentially decreasing further with added revenue from customer purchases.
The company recently secured a significant $13.8 million, four-year development contract with the U.S. Air Force to advance AI and ML software. Despite recorded pre-earnings and $11.52 million in revenues, analyst Stephen Volkmann of Jeffries revisited his price target for the company to $1.15 in August 2023. Although this represents a decrease from $4.25, the downgrade still indicates a 109.85% upside for the company, expected to be reached within twelve months.
Early-stage companies such as STRC present significant upside potential, despite their risk. Investing in these firms, even with fractional shares, could pave the way for seven-figure returns.
Smith & Nephew (SNN)
Smith & Nephew’s Expansion into Robotics: A Strategic Move for Growth
Smith & Nephew’s Venturing into Robotics
In a surprising move, Smith & Nephew, a company renowned for pioneering contributions to orthopedic reconstruction and advanced wound management, is now foraying into the realm of robotics with its innovative Navio surgical system. The Navio system is specifically designed for both partial and total knee replacement procedures, representing a groundbreaking expansion into a burgeoning market sector.
Impressive Revenue Growth in 2023
The company’s financial report for the first half of 2023 revealed an impressive rise in revenue, soaring to $2,734 million. This remarkable 7.3% increase on an underlying basis was propelled by strong performance in the sectors of Sports Medicine & ENT and Advanced Wound Management, showcasing the company’s astute management and operational prowess.
Robust Future Projections and Market Positioning
Looking forward, Smith & Nephew forecasts a potential annual saving exceeding $200 million by 2025. This is part of the company’s overarching strategy to ramp up productivity and stimulate growth across all its segments, reflecting a foresighted and ambitious approach that bodes well for future success.
Given the decentralized nature of the budding robotics surgery market, it is crucial to note that different robots are specialized and authorized for distinct surgical applications. While the growth potential of robotics is expected to manifest incrementally, Smith & Nephew stands poised for success in its specialized niche. The company’s strategic position in this dynamic landscape solidifies its status as a prime contender within the robotics sector, making it an appealing choice for investors keen on delving into robotics stocks.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the
About the Author
Author Matthew Farley embarked on his journey of financial market coverage during the crypto boom of 2017 and was an integral part of several fintech startups. His expertise subsequently expanded to writing about Australian and U.S. equities for various esteemed publications, showcasing a deep understanding of market dynamics and trends. His work has been featured in a multitude of reputable platforms including MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the esteemed New Scientist magazine, a testament to his diverse and well-regarded expertise in the financial landscape.
