3 Cheap Robotics Stocks to Buy Now: May 2024
Cheap robotics stocks are worthy companies for you to consider now while they are undervalued. These companies are quietly improving their fundamentals and business outlook for the future. Furthermore, many can be bought at a steep discount.
Also, robotics stocks leverage several catalysts that could propel their stock prices to new heights. Advancements in artificial intelligence (AI), machine learning and automation help buoy their valuations and competitive moats. Worldwide, industries are increasingly adopting robotic solutions to streamline processes, reduce costs and enhance efficiency. So, the demand for innovative robotics technologies is expected to skyrocket.
Moreover, the robotics sector is poised for significant growth in the coming years. Applications will span manufacturing, healthcare, agriculture and beyond. By investing in these robotics stocks now, investors can strategically position themselves. Then, they can benefit from this transformative trend while minimizing their initial investment risk.
UiPath (PATH)
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UiPath (NYSE:PATH) excels in robotic process automation (RPA). Such tasks include invoicing and customer onboarding across various industries. Despite facing increased competition, UiPath remains a leader in the RPA sector.
The firm has developed an array of RPA solutions that leverage advanced technologies like computer vision, cognitive automation and intelligent scheduling. These enhancements are designed to improve automation efficiency and scalability.
UiPath reported strong financial results for the fourth quarter and full fiscal year of 2024. Their revenue reached $405 million, a 31% increase year-over-year (YOY). Also, annual recurring revenue (ARR) grew 22% to $1.464 billion.
In addition, the company achieved GAAP profitability for the first time as a public company. For the full year, revenue was $1.308 billion, up 24% from the previous year. It showed significant growth in operating margins and record cash flows.
Therefore, PATH is a robotics stock to buy now, especially as its valuation looks quite attractive compared with its peers.
Rockwell Automation (ROK)
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Rockwell Automation (NYSE:ROK) specializes in industrial automation and digital transformation. The company has expanded its robotics capabilities through strategic acquisitions.
Some notable examples of ROK’s solutions include equipping major automotive manufacturers with advanced automation systems that integrate robotic solutions and control systems. This provides the necessary software and hardware to automate critical processes such as welding, painting and assembly.
In fact, now could be an excellent time for investors to scoop up ROK shares as it navigates some short-term headwinds. It has faced some challenges in Q2 of 2024, adjusting its full-year financial outlook.
The company reported a decrease in revenue to $2,126 million, a 6.6% drop YOY, although it exceeded analyst projections. Also, net income fell to $266 million from $300 million in the same period last year. As a result, the company has revised its fiscal 2024 sales growth guidance downward and adjusted its EPS forecast to between $8.80 and $9.80.
ROK’s share is down 11.51% year-to-date (YTD) but up 69.11% over the past five years. Hence, this presents an attractive entry point.
Nvidia (NVDA)
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Nvidia (NASDAQ:NVDA) is a leading player in the AI and robotics sectors, providing advanced AI chips and robotics solutions. Its Nvidia Isaac platform is a comprehensive toolkit for developing and deploying robotics applications.
NVDA investors are feeling bullish about the introduction of Project GR00T and updates to its Isaac Robotics Platform. Project GR00T is a general-purpose foundation model designed for humanoid robots, enhancing their ability to understand natural language and emulate human movements.
These tools are pivotal for training robots in simulation environments, allowing for efficient scaling of robot learning.
Despite NVDA’s valuation, notably its P/E of around 80 at the time of writing, it has many growth tailwinds in robotics, AI and blockchain to reasonably justify it. Indeed, it may prove itself as a strong addition to one’s portfolio.
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 InvestorPlace.com Publishing Guidelines.
