The AI-powered robotics industry has proliferated and is poised for further expansion in the upcoming years, fueled by the demand surge for automation and precision. Also, the ongoing labor shortage and cost reduction strategies are leaning more and more industries toward the adoption of AI robots.
Against this backdrop, investors could consider investing in quality AI-powered robotics stocks Intuitive Surgical, Inc. (ISRG), Rockwell Automation, Inc. (ROK), and iRobot Corporation (IRBT) for the next industrial revolution.
Robotics is no longer just a vision but has become a reality and is transforming the operations and lives of today's generations. The robotics market is marking strong impacts in many essential end-user industries, including the medical field and industrial machinery, and even revolutionizing the home improvement market. This growth rally is to continue in the coming period as well.
Last year, the number of operational robots across the world evidenced a rapid surge and hit a new record, reaching 3.9 million units, as per the International Federation of Robotics. Compelling trends like AI and machine learning, Cobots in new applications, mobile manipulators, digital twin technology, and humanoid robots substantially contribute to the market growth.
With this, the global AI robotics market is expected to hit around $17.03 billion in 2024, where the United States will emerge as the largest market with $5.64 billion in the same year. The global market is also expected to grow at a CAGR of 24.8%, resulting in a market volume of $64.35 billion by 2030.
The Artificial Intelligence robots market is rapidly growing with continuous advancements in AI technologies, increasing adoption, and growing demand for automation. Also, the expanding contribution of AI robotics through increased production efficiency, precision in processes, reduced operational costs, and assistance are playing pivotal roles in the adoption.
Given the industry’s bright prospects, investors could consider fundamentally strong robotics stocks such as ISRG, ROK, and IRBT.
Let’s discuss the fundamentals of these stocks in detail:
Intuitive Surgical, Inc. (ISRG)
ISRG develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care internationally. It provides the da Vinci Surgical System, allowing complex surgery using a minimally invasive approach, and the Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures.
On June 5, ISRG received FDA approval for a labeling revision for its updated da Vinci X and Xi label, confirming their use in radical prostatectomy. The approval is backed by real-world data, which shows that robotic-assisted surgeries offer long-term survival rates similar to traditional methods.
During the third quarter ended September 30, 2024, ISRG’s total revenue increased 16.9% year-over-year to $2.04 billion. Its non-GAAP gross profit grew 17.3% from the year-ago value to $1.41 billion. The company’s non-GAAP income from operations of $754.90 million indicates a 21% growth from the prior-year period.
In addition, non-GAAP net income attributable to ISRG stood at $669.10 million and $1.84 per share, up 27.7% and 26% year-over-year, respectively.
Analysts expect ISRG’s revenue for the fourth quarter (ending December 2024) to increase 13.9% year-over-year to $2.20 billion, and its EPS for the same quarter is expected to grow 9.4% year-over-year to $1.75. Furthermore, the company has topped the consensus revenue and EPS estimates in each of the trailing four quarters.
Shares of ISRG have gained 39.9% over the past six months and 89.2% over the past year to close the last trading session at $521.15.
ISRG’s bright prospects are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
ISRG has an A grade for Sentiment. It is ranked #59 out of 136 stocks in the Medical – Devices & Equipment industry.
To check other POWR Ratings of ISRG for Quality, Value, Momentum, Growth, and Stability, click here.
Rockwell Automation, Inc. (ROK)
ROK provides industrial automation and digital transformation solutions internationally. The company operates in three segments, Intelligent Devices; Software & Control; and Lifecycle Services.
On September 10, ROK launched Logix SIS, a cutting-edge safety instrumented system (SIS) designed to address the evolving needs of modern industrial environments. The introduction expands the company’s industry-leading safety technology portfolio.
Logix SIS offers a modern and integrated safety solution, providing both SIL 2 and SIL 3 certifications for enhanced process and hybrid safety.
On July 25, ROK and Cisco, a worldwide leader in networking and security, signed a Memorandum of Understanding (MOU) to collaborate and propel the digital transformation of the industrial market in the Asia Pacific, Japan, and Greater China region.
The combined expertise empowers manufacturers to streamline their operations, boost productivity, improve sustainability, and fortify the security of their industrial networks.
ROK posted sales of $2.05 billion for the third quarter that ended June 30, 2024, of which its Lifecycle Services sales increased 11.8% year-over-year to $581.20 million. The company’s adjusted net income and adjusted EPS totaled $311.30 million and $2.71 for the quarter, respectively.
The company updated its fiscal year 2024 outlook for adjusted EPS to $9.60. Also, it continues to expect inorganic sales growth of 15% for the year.
Analysts expect ROK’s revenue and EPS for the second quarter (ending March 2025) to grow 1.7% and 2.2% year-over-year to $2.16 billion and $2.56, respectively. Moreover, the company surpassed the consensus EPS and revenue estimates in three of the trailing four quarters.
Over the past month, the stock has surged 3.3% to close the last trading session at $272.82.
ROK’s POWR Ratings reflect its robust outlook. ROK has a B grade for Quality. It is ranked #61 among 79 stocks within the A-rated Industrial - Machinery industry.
To see the other ratings of ROK for Growth, Value, Stability, Sentiment, and Momentum, click here.
iRobot Corporation (IRBT)
IRBT designs, builds, and sells robots and home innovation products internationally. The company provides floor care products, Roomba accessories and consumables, the Braava family of automatic floor mopping robots, and Braava accessories and consumables.
On July 23, IRBT unveiled the Roomba Combo 10 Max Robot with the AutoWash™ Dock, its most advanced vacuum and mop. The 2-in-1 device independently handles refilling, recharging, washing, and self-cleaning. Powered by iRobot OS, the innovative has Enhanced Dirt Detect™ Technology allowing identification and concentration on heavy dirt areas.
For the second quarter that ended June 29, 2024, IRBT reported revenue of $166.36 million. The company’s non-GAAP gross profit came in at $27.74 million for the quarter. Furthermore, the company’s cash and cash equivalents and total assets stood at $108.51 million and $585.94 million as of June 29, 2024.
Analysts expect IRBT’s revenue for the third quarter (ended September 2024) to grow 17.3% year-over-year to $218.41 million. For the fiscal year 2025, the company’s revenue is expected to increase 3.2% year-over-year to $818.02 million.
Over the past month, IRBT’s stock has surged 7.1% and 9.7% over the past six months to close the last trading session at $7.95.
IRBT’s sound fundamentals are reflected in its POWR Ratings. IRBT has a B grade for Momentum. It is ranked #52 among the 57 stocks within the B-rated Home Improvement & Goods industry.
To see the other ratings of IRBT for Growth, Quality, Value, Stability, and Sentiment, click here.
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ISRG shares were unchanged in after-hours trading Monday. Year-to-date, ISRG has gained 53.80%, versus a 23.95% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari Saxena
Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.
3 AI-Powered Robotics Stocks for the Next Industrial Revolution StockNews.com
