Wall Street has also made it clear which robotics stocks are their favorite. Below are three of them to help balance investors’ long-term returns with exposure to cutting-edge technologies in April 2024.
Symbotic (SYM)
Symbotic (NASDAQ:SYM) is a leader in autonomous warehouse solutions, which use AI to optimize the storage, retrieval and transportation of goods. Symbotic’s warehouse solutions consist of software, robots and racks that work together to increase the speed, accuracy and flexibility of warehouse operations. While SYM’s revenue has doubled consecutively since 2020, management expects there to be more recurring revenue and, therefore, top-line predictability as more products are deployed. Symbotic ended 2023 on a high note. Top-line figures ended the year at $1.2 billion, representing a jaw-dropping 98% year-over-year increase from Symbotic’s 2022 revenue figures. The AI-enabled robotics firm is currently trading at around 13.8x forward sales.
There are about 15 analysts covering Symbotic’s shares, and 12 have rated the automation firm’s shares either a “Buy” or “Strong Buy.” If we step back a little and review the sector in which Symbotic operates, it’s not difficult to see why. While older industries have been slower to adopt digital transformation trends, they stand to benefit the most from them. Although SYM’s shares have taken a dip in 2024, likely due to its high trading multiple, the automation firm’s strategy to engage on both the software and hardware aspect of the automation space could give create long-term growth tailwinds and shareholder value.
Hitachi (HTHIY)
Speaking about bridging novel AI technologies and industrial automation, our next entry on the list is doing just that. Hitachi (OTCMKTS:HTHIY), a Japanese industrial conglomerate, which makes swaths of industrial equipment to robots, announced a partnership with Nvidia (NASDAQ:NVDA) to help bring generative AI to the forefront of its businesses.
Generative AI has created efficiencies in a number of enterprise and consumer applications. However, it has yet to make its way into the industrial sphere of the market. These kinds of spaces in which Hitachi operates require heavy amounts of capital investment, and while interest rates remain elevated and will be that way for the foreseeable future, companies operating warehouses, logistics sites, or manufacturing facilities are going to look for ways to reduce their long-term costs. Digital transformation through generative AI could bring these cost efficiencies into fruition.
The conglomerate expects to utilize Nvidia’s Omniverse technology to simulate and optimize industrial processes. Moreover, Hitachi will also be combining its own Lumada AI library with Nvidia’s AI Enterprise and Modulus platforms to help customers, operating in a range of industries, to create their own AI-centric solutions.
Along with creating automation tools for the industrial sector, Hitachi has also developed several robotics technologies, including an autonomous dual arm that creates efficiencies in the logistics space.
Hitachi’s shares have beat the market, rising more than 28% on a year-to-date basis, yet they remained relatively undervalued, trading at only 23.6x forward earnings.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) continues to play an influential role in transforming the way in which surgeons operate complicated surgical procedures. This robotics firm is the pioneer and market leader in robotic-assisted surgery. The company’s flagship product, the da Vinci Surgical System, enables surgeons to perform minimally invasive procedures with enhanced precision, control and dexterity. The system has been used in over 14.2 million surgeries across various specialties such as urology, gynecology, general surgery and cardiothoracic surgery. In its Q4 earnings report, Intuitive Surgical announced procedures had increased by 22% from last year with 2.3 million procedures performed in 2023.
Wall Street, overall, has remained upbeat about Intuitive Surgical, with the majority of analysts covering the stocks issuing a “Buy” or “Strong Buy” rating for the robotics firm’s stock. In fact, investment banks Stifel and Citigroup have raised their price targets to $430 and $462, respectively.
ISRG shares have appreciated nearly 16% on a year-to-date perspective.
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 particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.