If You Can Only Buy One Robotics Stock in April, It Better Be One of These 3 Names

Robotics stocks are becoming favorites among investors looking to buy quality, undervalued picks this season, thanks to the emergence of generative AI in 2024. The sound of robotics is not music to everyone’s ears — there is anxiety of what will happen to the job in these industries. However, rather than eliminating any jobs, it can enhance the work rate of a mediocre performer in a high-risk area like surgery.

People will quote a Brookings survey when speaking to you about a potential robot takeover. The study finds 52% believe robots will perform most human tasks in 30 years. Then, though, however, a BYU study recently found that only 14% of employees believe a robot has replaced them in their line of work.

An MIT study found automating tasks with AI is currently only economical for 23% of worker wages in those roles. Bottom line: Your job is not going anywhere anytime soon, but as an investor, you cannot ignore these robotics stocks to buy.

Symbotic (SYM)

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Symbotic’s (NASDAQ:SYM) core business is intrinsically linked to e-commerce, a market segment that reached $5.8 trillion last year.

Symbiotic is mechanizing workflows inside the factory floor, making it an indirect way to invest in the e-commerce boom.

With its automated warehousing systems, Symbotic hopes to transform factory floor operations radically. Symbotic uses various technologies, including software, robots and racks, to increase warehouse operations. As e-commerce gains traction, so too will the demand for its offerings. There is little to suggest a slowdown any time soon. Symbotic, will look to capitalize on this trend — and the latest data suggests it’s already doing so.

The three-year revenue growth rate per share for Symbotic, standing at approximately 116%, places the company in a strong position, ranking it better than 99% of 2,775 companies within its sector.

The consensus for SYM stock is a “Strong Buy,” with an upside potential of roughly 16% versus the last close of $46.

Intuitive Surgical (ISRG)

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Intuitive Surgical (NASDAQ:ISRG) is one of the safer picks among robotics stocks to buy, thanks to its da Vinci surgical systems — the standard in robotic surgery.

ISRG offers investors exposure to a robotic surgery market that is expected to grow to $7.2 billion by 2033. The world’s aging population and the growing use of equipment in operating rooms are responsible for a 16% growth rate in a 10-year span.

What’s more, every newly installed system is not just a substantial one-time sale. Instead, it’s also a steady source of income from maintenance agreements, spare parts and operationally essential tools over an extended period of time.

The sale of disposable instruments and accessories — required for every surgery carried out with the da Vinci systems — and service fees for system upkeep produce a steady income stream.

Due to their increased adoption in new surgical specialties and deeper penetration into existing applications (like urology and gynecology), da Vinci systems are being employed in an increasing number of surgeries. Over 11 million robotic operations are already in the books as of 2023. The FDA recently approved the fifth iteration of ISRG’s robotic system, the da Vinci 5.

Intuitive Surgical is also rapidly growing overseas, especially in emerging economies, as well as Europe and Asia, where robotic surgery is less common. This expansion is a crucial growth vector since foreign markets provide fresh income streams less saturated than American markets.

Compared to 74% of the 733 firms in the medical devices and instruments market, Intuitive Surgical’s three-year per share sales growth rate is stronger, at 18.2%.

The consensus analyst recommendation for ISRG is “Moderate Buy,” with an estimated 8% upside potential based on a $420 price target.

UiPath (PATH)

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Even with Blue Prism and Automation Anywhere chomping at the bits, UiPath (NYSE:PATH) still has around 35% of the robotic process automation (RPA) market.

But instead of sitting back, UiPath is expanding into full-scale automation by including AI and machine learning into its solutions in addition to RPA.

In new developments, the release of UiPath Autopilot features that increase productivity in a variety of organizational functions by leveraging specialized and generative AI. Natural language processing for creating automation in UiPath Studio, test case generation and speedy form digitization are some examples of these features.

Additionally, the 2023.4 platform update introduced key AI-powered features like new developer tools like Studio Web, which makes automation tasks easier for both professional and amateur developers, and embedded AI throughout the platform to improve document understanding and communications mining.

As a result of expanding successfully, UiPath is a leader in the 2023 Gartner Magic Quadrant for RPA.

With alliances like its most recent ones with Neostella to provide automation for midmarket companies and Orica for application testing, UiPath is growing its capabilities while working to improve operational efficiency and quality assurance.

UiPath has reported a three-year per share revenue growth rate of 25.6%, outpacing over 81% of 2,440 peers.

Analysts hold a “Moderate Buy” consensus on PATH stock, with an approximately $28 price target, suggesting roughly 26% upside.

On the date of publication, Faizan Farooque 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