Robotics is poised to revolutionize industries like manufacturing and healthcare, ushering in an era of automation and efficiency. As technological advancements continue, the sector seems set to enter a hyper-growth phase. For investors seeking exposure to cutting-edge technologies with long-term potential, these three robotics stocks stand out in February 2024.
Intuitive Surgical (ISRG)
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Building on Success: Intuitive Surgical (NASDAQ:ISRG) leads the market in robotic-assisted surgery, with its da Vinci Surgical System enabling minimally invasive procedures across multiple specialties. Impressively, the system has been utilized in over 13 million surgeries. The company’s revenue model also incorporates lucrative recurring elements tied to the services and operational leases related to the da Vinci product.
Financial Strength: In its most recent Q4 earnings, ISRG exceeded Wall Street’s estimates for both revenue and EPS, driven by higher da Vinci Surgical System volumes. The stock surged approximately 10% following the strong report, signifying its resilience and potential for growth.
Investor Opportunity: With robust growth in its core product, Intuitive Surgical presents an attractive buying opportunity as it continues to demonstrate strong performance in the market.
Teradyne (TER)
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Diversified Excellence: Teradyne (NASDAQ:TER) stands out as a prominent supplier of automated test equipment for semiconductors, electronics, wireless devices, and industrial automation. With segments like Universal Robots and Mobile Industrial Robots, the company boasts diversified revenue streams, alongside a strong position in the growing semiconductor testing market.
Financial Upturn: In its Q4 earnings report, Teradyne experienced a remarkable 50% revenue growth in its robotics segment, compensating for any softness in its system-on-a-chip (SoC) test systems business segment. At 30.7x forward earnings, the company’s valuation appears both reasonable and promising, reflecting its substantial potential for investor gains.
Zebra Technologies (ZBRA)
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Adversity Amid Potential: Zebra Technologies (NASDAQ:ZBRA) leads the market in enterprise asset intelligence solutions, offering products that facilitate asset, data, and workflow management. Through its subsidiary, Fetch Robotics, the company also delves into warehouse automation.
Recovery Expectation: While Zebra Technologies faced challenges in recent quarters due to soft demand in its end markets, there’s hope for a turnaround. With a 14% decline in its stock over the past 12 months, the company is potentially trading at an appealing price, especially as interest rates are anticipated to decrease towards the end of 2024.
On the date of publication, Tyrik Torres did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
