The Top 3 Robotics Stocks to Buy in April 2024
The U.S. economy holds promise with the rapid growth of robotics stocks and automation across industries. Companies increasingly invest in automated systems, expecting significant improvements in output quality, efficiency and uptime. The retail and consumer goods sector, in particular, is poised to lead this automation wave, with substantial capital allocations planned over the next five years. While challenges remain, such as upfront costs and adapting to new technology, there’s an overall positive impact, paving the way for a more resilient and adaptable industrial landscape.
The robotics market is projected to reach $95.93 billion by 2029 — a CAGR of 15.91%. This industry and growth confidence are exactly why you need to invest in these top three robotics stocks.
Alphabet (GOOG, GOOGL)
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Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), is a technology conglomerate most well known for its subsidiary advertising and cloud computing company Google.
GOOG is up 14.89% YTD. In April, 5 out of 5 analysts on Yahoo! Finance rated the stock as a “Buy” or “Strong Buy,” indicating bullish analyst sentiment. Although the stock has already surpassed the average price target of $155.08, some analysts have set a price target as high as $173.57, showing the company’s potential for further growth.
Alphabet has demonstrated strong financial performance over the last few years. In 2023, the company’s revenue grew by 9.36%, from $280,875 million to $307,157 million. Additionally, the company has even more income to collect, with accounts receivable increasing by 19.14%.
A key catalyst for Alphabet is its effective use of AI to bolster user connectivity and software accessibility. The company has shown efforts to accelerate its AI development projects, such as consolidating its research and Google DeepMind teams, to increase its ability to deliver AI to customers and users. Google DeepMind is advancing robotics with AutoRT, SARA-RT and RT-Trajectory, improving robot understanding and navigation. AutoRT trains robots using large models, SARA-RT streamlines transformer models and RT-Trajectory enhances robot learning with visual outlines for tasks.
Ultimately, Alphabet is an outstanding option among AI and robotics stocks for investors to buy.
Symbotic (SYM)
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Symbotic (NASDAQ:SYM) creates automation technology with artificial intelligence embedded software — namely a fleet of robots to automate the processing of pallets and cases in warehouses. Its stock has climbed 35% in the past year, and analysts indicate it could still rise. 15 analysts have a median price target of $55.00, representing a 36% increase from current levels.
In Q1 2024, Symbotic posted strong operational and financial results. With quarterly revenue of $369 million, the company brought in nearly 80% more in revenue than in Q1 2023. Additionally, Symbotic moved closer to profitability and improved its gross profit margin by 1.9% YOY. The company also strengthened its balance sheet, adding $129 million in cash, cash equivalents, restricted cash and marketable securities compared to the prior quarter, achieving a debt-to-equity ratio of 0.112.
Despite Symbotic’s exceptional performance, some investors are concerned about the concentration of its customer base. In 2023, 88% of the company’s revenue came from its deal with Walmart (NYSE:WMT). As such, Walmart wields huge influence over Symbotic’s decisions and even prohibits Symbotic from providing services to some of Walmart’s competitors. While Symbotic’s dependence on a single customer is concerning, the company is making progress towards expanding. For example, last year, SoftBank (OTCMKTS:SFTBY) and Symbotic established a warehouse-as-a-service joint venture, which includes a $7.5 billion sale of Symbotic systems. If Symbiotic diversifies its customer base, it could quickly evolve into a profitable company with stable, long-term growth.
UiPath (PATH)
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UiPath (NASDAQ:PATH) offers a range of robotic process automation solutions through its AI-powered automation platform, essentially helping businesses automate repetitive tasks. Its stock has risen 30% over the past year to $19.55, and 24 analysts have a median price target of $28.00, indicating a return of nearly 44%.
In Q4 FY2024, UiPath posted record quarterly revenues of $405 million, a 31% increase YOY. In terms of valuation, UiPath now has a non-GAAP forward P/E of 32.70 and trades at 6.91 times forward sales. When compared to other software companies that are embracing AI — such as Adobe (NASDAQ:ADBE) — UiPath is trading at relatively low multiples and remains inexpensive.
Furthermore, UiPath is actively looking to add new customers and doing so would be a huge sustainable growth opportunity for the company. With a dollar based net retention rate of 119% in Q4 2024, UiPath has proven that, once it gets its products into an organization, the company can upsell its services and grow revenue. To strengthen on this front, UiPath recently expanded some of its partnerships, including its partnership with Google Cloud. With these focuses, expect UiPath to continue building strong earnings momentum and remain a great choice in robotics stocks to buy.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
