Titan Medial, Fanuc and the Top 24 Stocks to Profit from the Rise of Robotics
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.
It is a new company that supply services to surgeons. It is undervalued. They are profitable. They have very high margins. It is cheap because they have a lot of receivables. If they hang on longer, the insurers give them more money. If you see the receivables coming in then it will grow.
Titan Medical Inc. (TMD-T)
A Toronto-based robotic surgical technology developer.
Medical robotics? He does not know TMD-T well. He plays the space through and ETF of BOTZ-Q. He prefers ISRG-Q, if you wanted an individual holding.
Agilent Technologies (A-N)
A company that creates robotics systems to provide automation solutions.
Consumables for labs. Green energy and pharmaceuticals creating all sorts of demand. Last quarter had 17% organic growth, pretty impressive. Guiding to 5-6% organic growth going forward. Underutilized balance sheet could be flexed for acquisitions. Growing dividend. Yield is 0.58%. (Analysts’ price target is $158.56)
Charles River Labs Intl (CRL-N)
They are working on a simple, walk-away robotic solution in laboratories.
Is undervalued and has been left behind because the market focused on Covid. CRL is in the same sector as Thermo Fisher, a sector that he likes.
Intuitive Surgical Inc. (ISRG-Q)
A robotic products designerthat improves clinical outcomes through minimally invasive surgery.
(A Top Pick Aug 10/22, Up 39%) Company has performed very well the past year.Excellent business model with high cash flow margins.Long growth runway.Has recently sold due to high share price valuation (60x P/E ratio).Better names in sector with cheaper valuation.
Stryker Corp. (SYK-N)
A robotic-arm assisted surgical equipment producer.
Stryker makes replacement body parts with several components involved. There is a huge backlog of elective surgeries due to Covid. Also an aging population needs more of these artificial parts so there is lots of growth ahead. Surgeons tend to use the same parts rather than switching to other makes. It has a great balance…
Kraken Robotics Inc. (PNG-X)
A marine technology company that creates Unmanned Maritime Vehicles.
Software-centric sensors for underwater. Two sides: sensor and power. Military, government, research companies are potential customers. Recent US $1.5M contract. Very illiquid. Almost a double from here to the price target. Buy in thirds at $0.52, 0.45, and 0.40. (Analysts’ price target is $0.96)
ATS Automation (ATA-T)
They create robots for factory settings.
One of the best performers this year. Keeps announcing more contracts, backlog's growing. Focused on life sciences and EV assembly plants. Picking high-growth niche areas. Not cheap, but the sky's the limit.
Flyht Aerospace Solutions (FLY-X)
A developer of robotics in the aerospace industry.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Profit of 1c per share beat estimates of -1c. Revenue of $7.2M beat estimates by 11.4%. EBITDA was positive $1.17M vs an expected loss of $305,000. Sales rose 186% so certainly a nice improvement. Margin was 67% up from 49.5%. Profit was the highest in three years…
Fanuc Corp (6954-TYO)
An industrial robot automation solution company.
Somewhat cyclical. Growth has been lagging, and doesn't see it accelerating soon. In a competitive space. Solid business, not cheap. High quality. Slowly getting more shareholder friendly. Better places to look.
Cognex Corporation (CGNX-Q)
They offer vision products for Vision Guided Robotics.
A huge customer, Amazon, pulled back spending which has impacted Cognex, but they are well-positioned in automation.
Aegion Corp (AEGN-Q)
This company’s services include proprietary robotic internal field joint coatings in pipelines.
He has been wrong on this one for a while, buying at $7 and selling out much lower. He did not like their treadmill of acquisitions of buying and selling. It is on his buy list again, but he is waiting. Yield 7.35%
Elbit Systems (ESLT-Q)
They develop robotic devices for a variety of land based missions.
Owns shares in the company and is one of the largest shareholders. Performance of stock price has been excellent. Very strong company with excellent management team. Expecting demand for defense technology will be higher as global tensions persist.
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.
Industrials have not performed, but it's the best of the lot. Stay long if you own it. If it falls during the debt-ceiling talks, then buy more.
YASKAWA Electric Corporation (YASKY-6506-JP)
A Japanese manufacturer of industrial robots and robotics equipment.
(A Top Pick Jan 22/19, Up 36%) There is some cyclicality in robotics in Japan, but they are one of two world leaders. He still owns it.
🚗 Motor Vehicle
Magna Int’l. (A) (MG-T)
They make robotics equipment for assembly lines.
Since peaking in early 2021, MG has been in a downtrend. Now, it's forming a base. If it breaks $85 and stays there a few weeks, that's good. But it keeps rubbing against that resistance level and he doesn't see a catalyst to take it higher.
Fiat Chrysler Automobiles NV (FCAU-N)
The Italian company is currently considering options for its robotic arm Comau.
Chrysler went bankrupt, but Fiat was able to come in and pick up the North American manufacturing/distribution and has been doing well. Italian car companies seem to be in favour at present. He would prefer auto part manufacturers such as Linamar (LNR-T) or Magna (MG-T). We are back to where auto sales are at a…
Tesla Motors Inc (TSLA-Q)
They are the leaders in automating their car manufacturing process.
Memex Inc. (OEE-X)
They offer integrated machine monitoring and adaptive control technology.
He hasn't heard any recent news on the company. The stock has moved up a lot lately, but is still well below past highs. Demand for company products remains huge. The CEO promises good news in the next earnings report.
Teradyne Inc (TER-N)
A producer of collaborative robots in manufacturing.
Alphabet Inc. (A) (GOOGL-Q)
There are many companies under Alphabet working in robotics, but they are notably working on developing bipedal robots.
Excellent business with very strong margins.Dominant in search engine technology.A.I., product recovering quickly.Current share price a good place to buy.Expecting double digit growth.Free cash flow very high - lots reinvested into R&D.
Robo-Global Robotics and Automation (ROBO-Q)
This ETF focuses on 12 subsectors work on the intersection of technology and its applications.
BOTZ vs. ROBO: The difference is that ROBO is an equal-weighted ETF and BOTZ is market-cap weighted. ROBO you get more mid- and small-cap, with maybe a better long-term return. But essentially both ETFs are very similar.
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.
Good exposure to A.I. boom and robotics bubble.Risky bet in tech space.Not good for defensive investors.Not any yield, but provides opportunity for large capital gains.