It was only a matter of time before the robots depicted in movies came to life, from machines cleaning homes to lending a helping hand at warehouses. This industry is on the rise in the automotive, healthcare and defense sectors, meaning it could be a great time to invest in robotic stocks.
This article was originally published on MyWallSt — Investing Is for Everyone. We Show You How to Succeed.
MyWallSt’s 3 Best Robotic Stocks
iRobot (NASDAQ: IRBT) is a big name in the robotics industry, posting 43% revenue growth for its most recent quarter. The company is well known for its efficient cleaning robot, the Roomba, and more recently its mopping product, Braava.
The company has also teamed up with big-name e-commerce giants including Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL), who have taken a liking to iRobots mapping that it has done for people’s homes. For instance, Amazon’s warehouse is powered by a number of robots to help with efficiency and keep up with demand, mainly performing the most repetitive and time-consuming tasks.
iRobot has given guidance for the full year 2020 of revenue of $1.365 – 1.375 billion. This is pretty impressive considering the company has a market cap of $2.1 billion and could provide a value-play for investors in a market that has become bloated of late.
It is an exciting time to be involved in the robotics industry with a lot of room to improve the running of robots. PTC (NASDAQ: PTC) is a stand out when it comes to developing software that allows accuracy and collaboration for the robot design process. The company made $1.46 billion for the fiscal year of 2020, up 16% year-on-year.
A number of manufacturers are now moving towards digitization and smart factories, meaning there will be more potential for PTC to grow as a business. Future predictions by analysts are promising, expecting $500 million in free cash flow in 2022, while for 2024, it’s predicted that PTC will deliver a free cash flow of around $850 million.
Defense and government agencies are always looking for innovative ways to assist soldiers fighting on the ground. One company that is helping the defense force by offering autonomous aircraft to have eyes in the sky, including drones is Raytheon (NYSE: RTN).
Raytheon posted bookings of $36.3 billion for 2019. Looking at revenue growth for 2020, the company expects growth of around 6% to 8%. Raytheon has been working on an exoskeleton that helps logistics workers move heavy military equipment. This is something that could hit the market running and boost sales for the company. On top of this, the business is merging with United Technologies (NYSE: UTX), a deal that is expected to generate $74 billion in annual sales.
MyWallSt makes it easy for you to pick winning stocks. Start your free trial with us today— it's the best investment you'll ever make.
Disclaimer Past performance is not a reliable indicator of future results.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.
*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.