The world is becoming increasingly automated paving the way for robotics stocks moving forward. Sector growth is expected to reach double digits on an annualized basis and ranges from the low to mid-teens depending on the source
In either case, capital invested in the sector has a reasonable chance of increasing in value. The firms highlighted here are well-established companies with long track records. Thus, investors sacrifice some level of sheer return potential for stability. Investing through thick and thin – aka the long term – requires such a sacrifice. With enough time and sufficient capital, it’s entirely reasonable to assume that an investment in the companies below could grow to exceed $1 million in value.
So here are the best robotics stocks to buy.
Intuitive Surgical (ISRG)
Investing in Intuitive Surgical (NASDAQ:ISRG) is a very good example of what it means to stay with something through thick and thin. The company has seen dramatic shifts in demand for its devices and services over the past few years.
The company is famous for its Da Vinci Surgical device but also for Ion Endoluminal systems. The emergence of the pandemic dealt a serious blow to the company. Suddenly, everyone was afraid to go to the hospital and that sent elective surgery demand plummeting. ISRG stock has gone up and down since. Here’s a simple argument in favor of investing for the long term. On Jan. 1, 2020, ISRG shares traded at $197.78. They now trade at $290 following several ups and downs.
2020 revenues declined at Intuitive Surgical. They’ve increased by double digits in almost every measurable period since. Da Vinci is the most prominent robot in the healthcare space. Its place is stable as is its underlying sector. That makes ISRG one of those strong robotics stocks.
Emerson Electric (EMR)
Emerson Electric (NYSE:EMR) is another well-known robotics firm. The stock derives some of its potential upside due to the emergence of automation and the economic promise therein. Automation promises to increase business efficiency in ways we can’t yet fully understand. The notion is simple, though: machines are faster than humans when programmed for a given task.
Emerson has an entire business dedicated to factory automation. It focuses not only on disruptive technologies in the space but also on established automation technology. As with anything, automation won’t go from 0-60 without passing through multiple speeds. Emerson is working on those intermediate levels as we speak. Thus, it’s likely to iterate toward new paradigms and create breakthrough automation tech.
That’s the general bullish outlook on Emerson for the long term as it relates to robotics. EMR shares are highly undervalued at present compared to their levels over the past decade based on the price-to-earnings ratio. That truth provides a reasonable argument in favor of investing now. Doing so includes a bit of dividend income to boot.
Thermo Fisher (TMO)
Thermo Fisher (NYSE:TMO) stock is closely associated with lab sciences. Most people recognize the firm for lab equipment, research, diagnostics, and the like. That said, Thermo Fisher also includes robotics research.
The firm has all kinds of lab robotics solutions which can be viewed here. The portfolio spans a lot of various end applications as well as software. It’s a safe firm to invest in for generalized exposure to robotics growth.
It’s also difficult to bet against Thermo Fisher as an investment given how well the stock has done over the past decade. It has returned nearly 20% on an annualized basis during that period. That’s roughly double the return an investor could expect over a similar timeframe through indexed ETFs. Of course, it’s not smart to invest in a single stock so the comparison isn’t perfectly apt. However, the returns speak for themselves.
Thermo Fisher is cooling some as its pandemic revenues wane but remains a strong investment nonetheless with revenues that are expected to continue growing overall.
On the date of publication, Alex Sirois 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.