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In this article, we discuss 13 best robotics stocks to buy now. If you want to see more stocks in this selection, check out 5 Best Robotics Stocks To Buy Now.
The global robotics market was worth $27.73 billion in 2020 and is forecasted to reach $74.1 billion by 2026, indicating a CAGR of 17.45% during the period of 2021 to 2026. The COVID-19 pandemic propelled the robotics industry into an era of fast-paced growth, as strict hygienic demands resulted in a new niche for service robots, in addition to robotics already used vastly by medical device companies. Resultantly, many manufacturers and customers invested in new disinfection robots in 2020. Similarly, food and package deliveries increased vastly during pandemic years, which triggered higher demand for delivery robots. Sales of professional service robots climbed by 37% in 2021, as per a report by the International Federation of Robotics.
The industrial robotics market is expected to grow from $15.7 billion in 2022 to $30.8 billion by 2027, registering a CAGR of 14.3% during the forecast period. Industrial robotics is one of the most promising subsectors in this space. One of the latest and most hyped IPOs in the robotics sector is Nauticus Robotics, Inc. (NASDAQ:KITT), a provider of ocean robotic solutions and cloud software to the ocean industry. Nauticus Robotics, Inc. (NASDAQ:KITT) debuted as a publicly traded company on September 13, 2022 and it seeks $90 million in revenue next year. Nauticus went public via a SPAC merger with New York-based CleanTech Acquisition Corp, and the SPAC deal was worth $560 million when it was first announced in December 2021. Nauticus is aiming to capitalize on market interest in companies working to reduce water pollution.
Some of the best robotics stocks to buy now include Intuitive Surgical, Inc. (NASDAQ:ISRG), Honeywell International Inc. (NASDAQ:HON), and Rockwell Automation, Inc. (NYSE:ROK).
Our Methodology
We selected the following robotics stocks based on positive analyst coverage, strong business fundamentals, and future growth prospects. We have assessed the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022.
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Best Robotics Stocks To Buy Now
13. ReWalk Robotics Ltd. (NASDAQ:RWLK)
Number of Hedge Fund Holders: 3
ReWalk Robotics Ltd. (NASDAQ:RWLK) is an Israel-based medical device company that designs, develops, and commercializes robotic exoskeletons for people with mobility impairments in the United States, Europe, the Asia Pacific, and Africa. The company offers rehabilitation solutions including ReWalk Personal, ReWalk Rehabilitation, ReStore, MyoCycle, and MediTouch.
H.C. Wainwright analyst Swayampakula Ramakanth on November 15 raised the price target on ReWalk Robotics Ltd. (NASDAQ:RWLK) to $3 from $2.50 and maintained a Buy rating on the shares.
According to Insider Monkey’s Q3 data, Hal Mintz’s Sabby Capital, Jim Simons’ Renaissance Technologies, and Israel Englander’s Millennium Management held stakes in ReWalk Robotics Ltd. (NASDAQ:RWLK) worth $782,000, $97,000, and $86,000, respectively.
In addition to Intuitive Surgical, Inc. (NASDAQ:ISRG), Honeywell International Inc. (NASDAQ:HON), and Rockwell Automation, Inc. (NYSE:ROK), ReWalk Robotics Ltd. (NASDAQ:RWLK) is one of the best robotics stocks to monitor.
12. Arbe Robotics Ltd. (NASDAQ:ARBE)
Number of Hedge Fund Holders: 4
Arbe Robotics Ltd. (NASDAQ:ARBE) was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel. It is a semiconductor company that offers 4D imaging radar solutions for tier-1 automotive manufacturers in Israel and the United States. Its product lines include Robot Shuttles & Taxis, which provide on-demand transportation services in dense urban environments surrounded by multiple static and moving obstacles. Arbe Robotics Ltd. (NASDAQ:ARBE) is one of the best robotics stocks to buy now.
On November 15, Arbe Robotics Ltd. (NASDAQ:ARBE) announced that HiRain Technologies, a Chinese ADAS Tier 1 supplier, placed its first mass quantity commercial order for 2023 and 2024, propelling Arbe Robotics Ltd. (NASDAQ:ARBE) into mass production phase. The order comprises 340,000 radar chipsets that will be supplied to HiRain's customers throughout China.
R.F. Lafferty analyst Jaime Perez on November 21 maintained a Buy recommendation on Arbe Robotics Ltd. (NASDAQ:ARBE) but lowered the firm's price target on the shares to $9 from $12 following the Q3 results.
According to Insider Monkey’s data, 4 hedge funds held stakes worth $16.93 million in Arbe Robotics Ltd. (NASDAQ:ARBE) at the end of the third quarter of 2022, compared to 5 funds in the prior quarter worth $16.94 million. Ben Levine, Andrew Manuel, and Stefan Renold’s LMR Partners held the biggest stake in the company, comprising 2.70 million shares valued at $16.20 million.
11. Nauticus Robotics, Inc. (NASDAQ:KITT)
Number of Hedge Fund Holders: 4
Nauticus Robotics, Inc. (NASDAQ:KITT) is a Texas-based company that develops and provides ocean robotic solutions and cloud software to the ocean industry. On November 14, Nauticus Robotics, Inc. (NASDAQ:KITT) reported a Q3 revenue of $2.98 million, climbing 51.3% on a year-over-year basis, beating Wall Street estimates by $0.51 million.
On October 17, Lake Street analyst Troy Jensen reiterated a Buy rating on Nauticus Robotics, Inc. (NASDAQ:KITT) but trimmed the price target on the shares to $9 from $14. After talking with the management following the announcement with the U.S. Defense Innovation Unit, the analyst said he believes this win was not factored into Nauticus Robotics, Inc. (NASDAQ:KITT)’s guidance during the SPAC process and “could be nicely incremental” if the company wins the next stage of this program. His reduced price target is due to multiple compression since he assumed coverage of the stock, the analyst wrote in a research note.
Among the hedge funds tracked by Insider Monkey, 4 funds reported owning stakes worth $2.36 million in Nauticus Robotics, Inc. (NASDAQ:KITT) at the end of the third quarter of 2022.
10. Asensus Surgical, Inc. (NYSE:ASXC)
Number of Hedge Fund Holders: 4
Asensus Surgical, Inc. (NYSE:ASXC) is a North Carolina-based medical device company that is focused on the research, development, and commercialization of medical device robotics to advance minimally invasive surgery in the United States, Europe, and Asia. Asensus Surgical, Inc. (NYSE:ASXC)’s products include Senhance Surgical System, a multi-port robotic surgery system that allows up to four arms to control robotic instruments and a camera for laparoscopic procedures.
On September 28, Asensus Surgical, Inc. (NYSE:ASXC) reported that the Clinic for General and Visceral Surgery at the St. Bernhard Hospital in Kamp-Lintfort, Germany has entered into an agreement to lease and utilize the Senhance Surgical System.
Cantor Fitzgerald analyst Ross Osborn on September 9 initiated coverage of Asensus Surgical, Inc. (NYSE:ASXC) with an Overweight rating and a $1.50 price target. Asensus Surgical, Inc. (NYSE:ASXC) is a "fast-growing," robotic-assisted surgery company that is digitizing the interface between the surgeon and patient to allow performance-guidance surgery through machine vision, augmented intelligence, and deep learning capabilities, the analyst told investors. The analyst holds a positive view of the estimated $56 billion laparoscopic surgery market and believes Asensus Surgical, Inc. (NYSE:ASXC) shares are "attractively valued."
According to Insider Monkey’s Q3 data, 4 hedge funds were long Asensus Surgical, Inc. (NYSE:ASXC), compared to 7 funds in the prior quarter. The collective stakes held by elite funds in Q3 amounted to $1.30 million, versus $2.48 million in Q2 2022.
9. Novanta Inc. (NASDAQ:NOVT)
Number of Hedge Fund Holders: 17
Novanta Inc. (NASDAQ:NOVT) is a Massachusetts-based company that designs, manufactures, and markets photonics, vision, precision motion components, and subsystems to original equipment manufacturers in the medical and industrial markets worldwide. The company’s Precision Motion segment offers intelligent robotic end-of-arm technology solutions. Novanta Inc. (NASDAQ:NOVT) is one of the premier robotics stocks to invest in.
On November 8, Novanta Inc. (NASDAQ:NOVT) reported a Q3 non-GAAP EPS of $0.81 and a revenue of $223 million, outperforming Wall Street estimates by $0.07 and $7.63 million, respectively. Revenue for the period gained 25.5% on a year-over-year basis. For full-year 2022, Novanta Inc. (NASDAQ:NOVT) expects GAAP revenue of approximately $857 million to $859 million, indicating a growth of 21%-22% versus a consensus of $851.65 million. The company forecasts adjusted diluted EPS to be in the range of $3.02 to $3.06, compared to a consensus of $3.01.
According to Insider Monkey’s data, 17 hedge funds were long Novanta Inc. (NASDAQ:NOVT) at the end of September 2022, compared to 21 funds in the prior quarter. The collective stakes held by elite funds in Q3 2022 stood at nearly $130 million, compared to $190 million in Q2 2022.
Here is what Andvari Associates has to say about Novanta Inc. (NASDAQ:NOVT) in its Q4 2021 investor letter:
“Andvari started a position in Novanta within the last two years. We’ve allowed it to fly under the radar. However, with Novanta being a top performing position in Andvari’s portfolio during 2021, it’s appropriate to introduce you to the company.
Novanta is a company in a similar vein as Danaher and Roper. The company acquires niche businesses that make highly engineered solutions based on proprietary technology. These solutions are typically embedded in customer products for about ten years and provide enormous value for their cost. For example, Novanta’s subsidiaries provide the sub-systems that enable the precision motion required by robotic surgery or the proper functioning of high throughput DNA sequencers.
Novanta has also developed its own program of continuous improvement and growth: the Novanta Growth System (NGS). There is still ample room to apply NGS across current subsidiaries as well as all future acquisitions.
From 2012 to the last trailing twelve months (as of 9/30/21), Novanta has grown adjusted revenues at a 13% annualized rate. Adjusted EBITDA has grown at a 14.9% annualized rate. The company has achieved these growth rates by divesting and acquiring several businesses since 2012. Importantly, the company has acquired businesses using its cash flows and debt, not by issuing equity and diluting current shareholders.
As of the last twelve months, Novanta earned about $650 million in revenues with EBITDA margins in the high teens. With a focus on acquiring niche businesses and applying NGS, Novanta is still in the early stages of compounding value at high rates.”
8. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holders: 18
AeroVironment, Inc. (NASDAQ:AVAV) is a Virginia-based company that designs, develops, and produces a portfolio of robotic systems for government agencies and enterprises in the United States and internationally. It operates through four segments – Unmanned Aircraft Systems, Tactical Missile System, Medium Unmanned Aircraft Systems, and High Altitude Pseudo-Satellite Systems. AeroVironment, Inc. (NASDAQ:AVAV) is one of the top robotics stocks to monitor.
On November 18, Canaccord analyst Austin Moeller raised the price target on AeroVironment, Inc. (NASDAQ:AVAV) to $105 from $100 and maintained a Buy rating on the shares. While the analyst acknowledged that the full procurement details of the Ukraine aid add-on package to the 2023 budget are not known yet, he cited Switchblade 300 and 600 procurement upside for the raised target.
According to Insider Monkey’s third quarter database, 18 hedge funds were bullish on AeroVironment, Inc. (NASDAQ:AVAV), up from 10 funds in the prior quarter. Cathie Wood’s ARK Investment Management held the largest stake in the company, comprising 750,191 shares worth $62.5 million.
7. Globus Medical, Inc. (NYSE:GMED)
Number of Hedge Fund Holders: 20
Globus Medical, Inc. (NYSE:GMED) is a Pennsylvania-based medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. The company offers ExcelsiusGPS, which combines a rigid robotic arm and full navigation capabilities into one platform for accurate alignment in spine surgery. Globus Medical, Inc. (NYSE:GMED) reported a Q3 revenue of $254.15 million, up 10.6% year-over-year, beating analysts’ estimates by $0.51 million.
On October 12, ??Jefferies analyst Matthew Taylor assumed coverage of Globus Medical, Inc. (NYSE:GMED) with a Buy rating and a $75 price target. The "spine innovator" is experiencing solid momentum in its primary business, supported by its "industry-leading technology," the analyst told investors. Citing data from Jefferies’ proprietary Spine survey, the analyst expects Globus Medical, Inc. (NYSE:GMED)’s resilient share gains to continue and noted that estimates "look achievable in the near term." He also said that he appreciates Globus Medical, Inc. (NYSE:GMED)’s expansion into new markets, including trauma and robotics.
Among the hedge funds tracked by Insider Monkey, 20 funds reported owning stakes worth $111.78 million in Globus Medical, Inc. (NYSE:GMED) at the end of September 2022, compared to 21 funds in the prior quarter worth $82.6 million. Brian Ashford-Russell and Tim Woolley’s Polar Capital is the leading position holder in the company, with 725,308 shares valued at $43.20 million.
Here is what Madison Small Cap Fund has to say about Globus Medical, Inc. (NYSE:GMED) in its Q4 2020 investor letter:
“Healthcare continued its streak of underperformance in the fourth quarter. The biotech industry component of the Russell 2000 was up 34% for the quarter and 53% for the year. While we have become more open to investing in this space where appropriate, we prefer molecular diagnostics given less regulatory risk and better revenue diversification. With the new administration comes a shift in healthcare philosophy. We believe that further access to care and coverage expansion will benefit some parts of the sector. However, the risk of further reimbursement cuts, particularly in pharmaceuticals, will bear monitoring.
Our favorite healthcare stock for 2021 is Globus Medical, a provider of spine implants and robotic solutions in the orthopedic industry. This stock has been a disappointing investment in the three years that we have held it. Though, the company itself has executed extremely well. We think this name is a “coiled spring” in a reopening scenario as management played aggressive offense in 2020. They aggressively have grown their sales force and did not hunker down during the pandemic. Recent quarters suggest that the company has taken considerable share, and this should bear fruit as surgical volumes resume in 2021 and 2022.”
6. Omnicell, Inc. (NASDAQ:OMCL)
Number of Hedge Fund Holders: 23
Omnicell, Inc. (NASDAQ:OMCL) is a California-based company that provides medication management solutions and adherence tools for healthcare systems and pharmacies in the United States and internationally. Among its many offerings are robotic dispensing systems for handling the stocking and retrieval of boxed medications, IV compounding robots, and workflow management systems.
On November 3, Craig-Hallum analyst Matt Hewitt reiterated a Buy rating on Omnicell, Inc. (NASDAQ:OMCL) but lowered the price target on the shares to $75 from $185. While Q3 results and guide disappointed, the analyst said that he has seen this before and expects the business to rebound.
Among the hedge funds tracked by Insider Monkey, 23 funds reported owning stakes worth $106.3 million in Omnicell, Inc. (NASDAQ:OMCL) at the end of Q3 2022, compared to 19 funds in the prior quarter worth $103.8 million. Ken Griffin’s Citadel Investment Group held a prominent stake in the company, consisting of 346,919 shares valued at $30 million. Like Intuitive Surgical, Inc. (NASDAQ:ISRG), Honeywell International Inc. (NASDAQ:HON), and Rockwell Automation, Inc. (NYSE:ROK), Omnicell, Inc. (NASDAQ:OMCL) is one of the favorite stock picks of elite investors. Here is what Carillon Scout Small Cap Fund has to say about Omnicell, Inc. (NASDAQ:OMCL) in its Q1 2022 investor letter:
“Omnicell (NASDAQ:OMCL) provides an integrated suite of clinical infrastructure and workflow automation solutions for healthcare facilities. Cloud services have been a focus of the company and have shown good growth, automating many manual processes.”
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Disclosure: None. 13 Best Robotics Stocks To Buy Now is originally published on Insider Monkey.
