The 3 Most Promising Robotics Stocks to Buy in May 2023

Stocks to buy

The ever expanding role of robotics is making it an ideal time to find the top robotics stocks to buy. Robots, once confined to science fiction, have become a critical part of our daily lives. They assist us in tasks from housecleaning to complex medical procedures. The integration of these technologies often goes unnoticed, yet the enormous growth potential of the sector cannot be overlooked.

Industry predictions amplify the sentiment concerning market forecasts. According to Statista, the global robotics market is likely to reach a whopping $34.9 billion this year. By 2027, it projected to hit a total valuation of $43.3 billion. This dramatic growth reflects the escalating demand for smart, sophisticated robotic systems, effectively laying the foundation for expansive long-term growth.

As we advance, the prevalence of robots in our daily lives is expected to surge, particularly as artificial intelligence technologies evolve. For investors looking to explore the future today, robotics offer an incredible long-term opportunity. Thus, let’s dive in and look at three robotics stocks to buy.

Intuitive Surgical (ISRG)

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Intuitive Surgical (NASDAQ:ISRG) is on a roll, as it effectively rides the wave of robust earnings and sales of its da Vinci surgical system. As healthcare facilities tackle the growing surgical backlog resulting from the pandemic, the firm’s revenues are on an upward trajectory, reflected by the spectacular momentum exhibited by its stock price. ISRG stock is up more than 35% in the past year, boasting a total return of 473% in the past decade.

It recently reported its first-quarter results, which prompted a rally in its stock price. The results exceeded analysts’ expectations, showcasing growth rates of 26%, the highest since mid-2021. Consequently, it has revised its 2023 procedure outlook to 19.5%, up by 5.5% from previous estimates. Moreover, the sales of the da Vinci surgical system grew by 12%, reinforcing its global footprint with a mighty 7,779 platforms installed worldwide.

iRyhthm Technologies (IRTC)

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iRyhthm Technologies (NASDAQ:IRTC) is at the heart of innovation with its robust heart monitors, no pun intended. Its potent Zio heart rate monitor provides rock-solid analysis on par with seasoned cardiologists, potentially averting hospitalizations and severe cardiac events. Moreover, it draws from a staggering 1 billion hours of ECG data, expertly transforming its massive data bank into a thriving enterprise.

Over the years, the company has been remarkably consistent, with its average 5-year revenue growth at 34.3%, which comfortably dwarfs its sector averages. In its most recent quarterly report reveals an impressive 20.6% uptick in revenues to $111.4 million, with gross margins at an impressive 67.9% on a year-over-year basis. As we advance, its management expects the firm to mature into a $1 billion entity by 2027.

ABB Ltd. (ABB)

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Swedish industrial tech player ABB Ltd., is subtly reshaping the landscape of electrification, automation and robotics. Amid economic headwinds, the behemoth has leveraged savvy pricing strategies, improving component accessibility to bolster sales growth. Moreover, the firm is steadfastly targeting an impressive EBITDA margin of 15%, letting it evolve rapidly.

Their discrete automation segment has emerged as a shining beacon in recent quarters. For instance, in its most recent quarter, the firm experienced a solid 28% revenue increase year-over-year, amassing a total of $937 million. On top of that, operating income rocketed 423% to an incredible $115 million. Moreover, ABB recently invested $20 million to expand its robotics factory in the U.S. to underscore its commitment to fulfilling the soaring demand for automation.

On the date of publication, Muslim 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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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