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The Future is Automated: 3 High-Potential Robotics Stocks Wall Street Loves

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As the realm of robotics continues its relentless march forward, reshaping traditional paradigms in industries far and wide, investors are presented with a tantalizing array of opportunities to capitalize on this technological revolution. While artificial intelligence and quantum computing often hog the spotlight in discussions around cutting-edge sectors, the transformative impact of robotics cannot be ignored.

Intuitive Surgical: Cutting-Edge Precision in Surgery

A sign with the Intuitive Surgical logo standing outside of a company office. ISRG stock.

Source: Sundry Photography / Shutterstock.com

Intuitive Surgical (NASDAQ: ISRG) stands as a trailblazer in the realm of robotic-assisted surgery, revolutionizing the landscape of complex surgical procedures. Its flagship product, the da Vinci Surgical System, allows surgeons to conduct minimally invasive procedures with unmatched precision and control. With over 14.2 million surgeries under its belt across specialties like urology, gynecology, general surgery, and cardiothoracic surgery, Intuitive Surgical exemplifies excellence in medical technology innovation.

In its latest earnings report, Intuitive Surgical reported a staggering 22% increase in procedures compared to the previous year, totaling 2.3 million procedures in 2023. Notably, the company’s revenue model boasts a robust recurring revenue stream stemming from services and operational leases tied to the da Vinci product, representing 83% of total revenue in 2023.

Analysts on Wall Street have showered Intuitive Surgical with optimistic ratings, primarily maintaining “Buy” or “Strong Buy” recommendations. This confidence has translated into a nearly 16% year-to-date appreciation in ISRG shares.

Teradyne: Leading the Automation Charge

Teradyne Silicon Valley office

Source: Michael Vi / Shutterstock.com

Teradyne (NASDAQ: TER) emerges as a premier provider of automated test equipment for the semiconductor, electronics, wireless devices, and industrial automation sectors. The company’s suite of products plays a pivotal role in guaranteeing the quality and performance of various devices propelling the modern era. Teradyne’s robotics division comprises Universal Robots and Mobile Industrial Robots, positioning it strongly in the collaborative robotics and autonomous robots segments.

While Teradyne’s revenue growth faced a setback with a 15% decline from 2022 to 2023, its robotics segment shone brightly during this period. In Q4, robotics revenue surged by an impressive 50% to reach $129 million. This uptick underscores the pivotal role of the robotics segment in driving future growth and amplifying the company’s industrial automation ambitions.

Zebra Technologies: Empowering Business with Intelligent Solutions

A photo of the sign for Zebra Technologies (ZBRA) outside of a building.

Source: Michael Vi/ShutterStock.com

Zebra Technologies (NASDAQ: ZBRA) stands as a prominent provider of enterprise asset intelligence solutions, offering a range of products from barcode scanners and printers to RFID tags, mobile computers, and software. These solutions empower businesses across sectors like retail, healthcare, transportation, and manufacturing to efficiently track and manage their assets, data, and workflows.

Despite recent financial challenges stemming from soft demand in its end markets, Zebra Technologies remains resilient. The company’s Q3 2023 earnings report revealed a 31% revenue decrease attributed to prolonged sales cycles and market weakness. The company’s Q4 performance mirrored these struggles.

In a tumultuous global economic climate, hope emerges for Zebra Technologies with the Federal Reserve hinting at upcoming interest rate cuts in 2024. This potential economic stimulus could breathe new life into ZBRA stock, which has experienced a modest 1% decline over the past year, presenting an enticing opportunity at a favorable valuation.

On the date of publication, Tyrik Torres did not have (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.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has a particular passion for helping people understand complex systems. His areas of expertise lie in semiconductor and enterprise software equities, with work experience spanning the realms of investing in both public and private markets, as well as investment banking.

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