3 Must-Buy Robotics Stocks When Prices Plunge
As the stock market weathers a temporary decline, savvy investors are looking for robotics stocks to buy. Wall Street recently closed out a challenging month with major indexes seeing substantial drops. The S&P 500 finished the month of April down by 1.6%, marking its first monthly loss in six months. This downturn was primarily driven by increasing concerns over persistently high inflation and interest rates.
However, despite the short-term challenges, the market potential for robotics remains enormous. The global robotics technology market is projected to surpass $283 billion by 2032, growing at a CAGR of 14.7%. Some factors driving this growth include increasing investments in technology, especially in vehicle production, and the rising demand for industrial and service robots.
As the robotics industry continues to innovate and expand, it offers strategic opportunities for long-term gains, especially when market volatility causes prices to dip. Hence, here are three must-buy robotics stocks that savvy investors should consider when prices plunge.
Symbotic (SYM)
Symbotic (NASDAQ:SYM) has positioned itself as a leading player in the warehouse automation sector. The company leverages robotics, artificial intelligence and machine learning to optimize supply chain logistics. At the heart of its system are SymBots, autonomous mobile robots that handle, transport, and store products with high precision. These robots operate in high-density storage aisles, guided by a sophisticated software platform that orchestrates their movement and task assignments.
Symbotic’s financials reflect a promising growth story. The company generated $369 million in revenue during Q1 2024, an impressive 79% year-over-year (YoY) increase. Moreover, adjusted EBITDA stood at $14 million, compared to a loss of $16 million in the same period last year.
Symbotic’s recent upgrade to NVIDIA (NASDAQ:NVDA) Xavier chips has improved its AI capabilities, enabling its robots to handle boxes with greater precision. The company’s CEO, Rick Cohen, mentioned during the earnings call that the company’s flagship robot, Symbot, delivers better efficiency and reliability than previous bots. It improves deployment speed and expands market reach.
SYM stock is down 17% year-to-date (YTD). However, analysts remain bullish and have an average price target of $54.8 on the stock. This presents a potential 33.3% upside in the near term.
iRobot (IRBT)
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iRobot (NASDAQ:IRBT) is a pioneer in the robotic vacuum industry. iRobot’s cutting-edge technologies, such as Imprint Technology, AI and computer vision, enhances the overall cleaning experience. The company is currently a turnaround story hinging on balancing cost reduction with continued innovation.
In the fourth quarter of 2023, iRobot Corporation reported revenue of $307 million, marking a 14% YoY decline. The company’s gross margins fell to 19%, driven by sluggish consumer spending and aggressive competition. Interim CEO Glen Weinstein outlined the company’s restructuring plan designed to stabilize operations amid current challenges. The key aspects of the plan include simplifying the cost structure, building a sustainable business model and focusing on core value drivers like leveraging the iRobot brand and innovative products.
The company’s stock has not done well in 2024. However, Wall Street analysts are bullish on the stock and have an average price target of $13. This leaves room for a 37% upside in the near term.
UiPath (PATH)
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UiPath (NYSE:PATH) is at the forefront of robotic process automation and artificial intelligence. The company boasts over 10,000 customers globally, ranging from software developers to large corporations. Its automation platform provides tools like a visual workflow designer and AI-powered document processing.
A critical driver of UiPath’s growth has been the buzz surrounding AI, especially since the launch of ChatGPT. As companies prioritize AI-based transformation, UiPath has effectively upsold its RPA products to existing customers while attracting new ones.
UiPath reported strong financial results for Q4 2024, exceeding both top and bottom-line guidance. The company achieved $405 million in revenue, marking a 31% YoY increase. The quarter also marked UiPath’s first GAAP profitable quarter, with a record 27% non-GAAP operating margin.
The stock continues to do well and is up 45% over the past one year. Wall Street analysts are bullish on the stock and have an average price target of $27.9. This leaves room for a 43.1% upside in the near term.
On the date of publication, Mohammed Saqib 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.
