In the next decades, economists are expecting a huge rise in robotics. These companies are working on technology that helps us do things better, or to replace manpower.
What does today’s robots look like?
Robotics touches a wide variety of fields that we’ve broken down below.
Here’s what a Titan Medial robot looks like:
The Top 24 Stocks
Here’s our selection of the Top 24 robotics stocks and ETFs…
Assure Holdings Corp (IOM-X)
They work on surgical robotics technology.
A fairly new company and has only had one conference call with management. Any time you have spine surgery in the US, there has to be 2 other people monitoring. Having 3 people is not very efficient, being set up by 3 different groups and billed 3 different ways. This company has formed a partnership…
Titan Medical Inc. (TMD-T)
A Toronto-based robotic surgical technology developer.
Robotic surgery. Intuitive Surgical (ISRG-Q) has a monopoly. This company thinks they have a better system. Have to go through FDA procedures. If it works they’ll be able to share the giant market. Have a long road ahead of them.
Agilent Technologies (A-N)
A company that creates robotics systems to provide automation solutions.
Charles River Labs Intl (CRL-N)
They are working on a simple, walk-away robotic solution in laboratories.
Does safety testing, the efficacy, phase 1 through 3 trials for particular drugs for pharmaceutical companies. High growth, growing earnings last year at 17%.
Intuitive Surgical Inc. (ISRG-Q)
A robotic products designerthat improves clinical outcomes through minimally invasive surgery.
Stryker Corp. (SYK-N)
A robotic-arm assisted surgical equipment producer.
They do knee and hip replacements. SYK are active in tuck-in acquisitions which is quite accretive. They trade at a decent valuation. A consistent stock performer.
Kraken Robotics Inc. (PNG-X)
A marine technology company that creates Unmanned Maritime Vehicles.
Tow boats use sonar to sweep ocean floors for water mines from naval warfare. A niche product which creates barriers to entry from competitors. Just approved by the U.S. Navy for some of its products. The market is finally paying attention to this.
ATS Automation (ATA-T)
They create robots for factory settings.
They design and build turnkey manufacturing and test systems. Doesn’t pay a dividend, but he thinks it is coming out of a long sleep with great opportunities as many companies bring manufacturing back to North America. They had a big earnings surprise this quarter and analysts’ forecasts have been revised significantly upward. Looking at the…
Flyht Aerospace Solutions (FLY-X)
A developer of robotics in the aerospace industry.
This company makes black boxes for the airlines. They have been around for a while, but the stock has not done well as trials with airlines have not been successful. He has held off buying until they get more traction with sales. They are too small to get into the big airlines.
Fanuc Corp (6954-TYO)
An industrial robot automation solution company.
Factory automation equipment. Probably #1 or #2 in robots globally. The issue is their auto exposure. People are concerned about auto exposure. The other issue would be Apple (AAPL-Q). They have significant exposure to the iPhone, because they make the robots that manufacture the metal backing for iPhones. We are now seeing less capital expenditure…
Cognex Corporation (CGNX-Q)
They offer vision products for Vision Guided Robotics.
This is the eyes of the robot. They have 2 distinct businesses. One is looking at quality controls in 2-D and 3-D through the assembly lines. The 2nd line of business is reading bar tags and barcodes. Also has a burgeoning business with Airport contracts where they can read barcodes on the luggage, getting the…
Aegion Corp (AEGN-Q)
This company’s services include proprietary robotic internal field joint coatings in pipelines.
They have a technology for coating/protecting pipes. Trading at about 15X earnings. Management is very excited about their book building. Have quite a backlog. He thinks earnings will accelerate in the future, which would drive the stock price higher.
Elbit Systems (ESLT-Q)
They develop robotic devices for a variety of land based missions.
Israel’s largest publicly traded defence contractor. It is divided into 3 segments. One third is being the largest drone producer globally with the broadest product line. The average drone is military and about 7 years old, and thinks they are going to get replaced. A second third is traditional defence electronics such as fire control…
Lincoln Electric Holding (LECO-Q)
An industrial automation products and robotic systems provider.
Makes welding equipment. Great, long-term track record. Makes excellent equipment. Growth on the re-industrialization of North America, including pipeline growth, etc. Trading at a great valuation.
Parker Hannifin Corp (PH-N)
A robotics and systems developer that works in factory and healthcare settings.
This Top pick consists of a basket of U.S. large caps, Gardner Denver (GDI-N), Corning (GLW-N) and Ingersoll-Rand (IR-N) Parker Hannifin (PH-N) and Timken (TKR-N). Infrastructure spending has lagged severely. On the corporate side, there is lots of cash on hand, debt has declined
YASKAWA Electric Corporation (YASKY-6506-JP)
A Japanese manufacturer of industrial robots and robotics equipment.
A robotics company. In a very cyclical business. They're skewed to the auto business within Japan and China, but lead in the motor and drive technology side. They've been beaten up in the past year, but're coming out of that down cycle now. (Analysts’ price target is $3117.65)
🚗 Motor Vehicle
Magna Int’l. (A) (MG-T)
They make robotics equipment for assembly lines.
Missed earnings last quarter. Lower 2019 volumes. Concern that new technology will elevate costs. Only 1% EPS growth. Exceptionally cheap at 6x. Really good over the long term, if not the next year. (Analysts’ price target is $72.11)
Fiat Chrysler Automobiles NV (FCAU-N)
The Italian company is currently considering options for its robotic arm Comau.
The guy at Fiat has done a good job. He would buy F-N if you had to be in this industry. It is a better company to own. Better growth in the Asian market, and they have some really good products. He does not like the industry as they have a lot of tail winds.…
Tesla Motors Inc (TSLA-Q)
They are the leaders in automating their car manufacturing process.
When you go to work, why park your car when it could be going around doing drive hailing, or making deliveries (self-driving). You could make enough money from this to make the monthly payments. They are getting rid of all his stores and you will have to buy the cars on-line.
Memex Inc. (OEE-X)
They offer integrated machine monitoring and adaptive control technology.
CISCO needs them to come into manufacturing facilities. They ensure all tools on a platform in a manufacturing floor integrate efficiently. It has great management and a short payback period. 300% and 4 month payback. It is a takeover candidate.
Teradyne Inc (TER-N)
A producer of collaborative robots in manufacturing.
A little nervous about the semiconductor cycle. This company seems to be getting its act together. Have done some restructuring. Not exposed to the themes that he is really fond of at this time.
Alphabet Inc. (A) (GOOGL-Q)
There are many companies under Alphabet working in robotics, but they are notably working on developing bipedal robots.
He is a big fan and likes their business model -- especially how it generates such great cash flow. There is a ton of runway ahead of them and he believes they will continue to grow. The one thing you have to be careful with is the issues around privacy. The fire is that they…
Robo-Global Robotics and Automation (ROBO-Q)
This ETF focuses on 12 subsectors work on the intersection of technology and its applications.
This is a pretty niche ETF, and when he is constructing client portfolios, he is looking for bigger themes. However, he thinks this is going to be a big theme in the future. In this post crisis environment, any industry that is disruptive or creative and inventive, will do well in the future. This is…
Global X Robotics & AI ETF (BOTZ-Q)
An ETF that invests in companies that could benefit from the increased adoption of robotics and artificial intelligence.
This is an example of an area of the market that has been booming. Very focused, thematic niche ETF’s. It is very new, and he can’t offer a lot of commentary on its performance as it only launched in Sept/16. The theme may make a lot of sense to people who are worried that a…