10 Best Robotic Stocks Under $10

In this article, we will be taking a look at the 10 best robotic stocks under $10.

According to Statista, the size of the industrial robotics segment is expected to compound annually at an average rate of 10% from 2021 to reach a size of $70.6 billion by 2028. Meanwhile, Coherent Market Insights believes that the size of the service robotics segment will compound annually at an average rate of 15.9% to reach $41.3 billion by 2028. Every notable player in the industry is trying to provide unique offerings to capture new markets in the robotics segment. The need for automation is increasing with every passing day, causing the adoption of robotics to grow rapidly.

The adoption of robotics has been spearheaded by the food and beverage industry in the recent past as robots provided a replacement for human resources and proved to be time efficient. The food and beverage industry has been facing a significant shortage of labor since the COVID-19 pandemic as the workforce moved away from the food sector during the lockdown. According to the International Federation of Robotics (IFR), the number of robots in the food and beverage industry grew by 25% YoY in 2021 to 3,402 units. One of the primary reasons for the rapid adoption of robots was a widespread belief that robots provided a higher level of hygiene and lowered human interaction during the peak of the COVID-19 pandemic.

Meanwhile, the IFR estimates that half a million robots are already commissioned across the automobile, chemical, plastic production, machinery, electronics, food, and beverage industries. The steady growth in the adoption of robotics was partially hampered by supply chain-related challenges due to widespread lockdowns globally during the pandemic. Furthermore, in 2022, there have been supply-chain-related disruptions due to the ongoing conflict between Russia and Ukraine impacting the commodities sector. Given the possibility of a recession with the rising cost of energy and labor shortages across numerous sectors, the adoption of robotics is expected to gain pace. Leading companies like International Business Machines Corporation (NYSE:IBM), Stryker Corporation (NYSE:SYK), and Rockwell Automation (NYSE:ROK) are investing heavily in research and development to develop robots and automated systems with unique features and higher applicability across different industries.

Our Methodology

We have looked at the expansion plans and financial strength of these companies. These stocks are trading under $10 as of November 21 and have the potential to become multi-bagger stocks in the future. We have ranked the 10 best robotic stocks according to the level of hedge fund ownership as of Q3 2022.

Best Robotic Stocks Under $10

10. Duos Technologies Group, Inc. (NASDAQ:DUOT)

Number of Hedge Fund Holders: 1

Duos Technologies Group, Inc. (NASDAQ:DUOT) is a Jacksonville, Florida-based company that employs the power of robotics in the operations-related aspect of logistics, intermodal transportation, and railroading.

The company, founded in 2001, is shifting its focus on generating recurring revenues since the arrival of new management under the leadership of CEO Charles Ferry in September 2020. Mr. Ferry has a clear strategy to improve the organization by leveraging its core competencies. Duos Technologies Group, Inc. is focused on increasing its recurring revenue to more than 20% of its top line. Previously, it used to be around 15%.

One of the leading robotic solutions provided by Duos Technologies Group, Inc. is related to checking railcars from every side to detect any manufacturing defects. The involvement of robotics increases efficiency and lowers the reliance on manual inspection. Numerous new orders have been generated as a direct result of the company’s improvements in its AI capabilities. Duos Technologies Group, Inc. has already secured $19 million in contract commitments, the majority of which will be fulfilled this year. The management predicts that revenues will double in FY22, making Duos Technologies Group, Inc. one of the best robotic stocks under $10.

Hudson Bay Capital Management held over 87,000 shares in Duos Technologies Group, Inc., worth over $354,000 at the end of the third quarter of 2022.

9. Microbot Medical Inc. (NASDAQ:MBOT)

Number of Hedge Fund Holders: 1

Microbot Medical Inc. (NASDAQ:MBOT) is a Newark, California-based manufacturer of a disposable surgical robot that aims to improve endovascular procedures’ outcomes. The robot is patented as the LIBERTY Robotics system.

Microbot Medical Inc. has a significant total addressable market (TAM) for neurovascular medical producers. Experts believe that the Robotics Assisted system introduced by Microbot Medical is groundbreaking and innovative. The company is led by an experienced leadership team that has a strong history in the robotics industry and has achieved success in the past.

Furthermore, the strategic partnership with Stryker Corporation in late December last year has been beneficial for both parties as Microbot Medical Inc. received the technical support of the Kalamazoo, Michigan-based medical technologies entity with a market capitalization of nearly $80 billion. Microbot Medical Inc. is also taking appropriate steps to protect the intellectual property of the LIBERTY Robotic system by filing claims with the patent offices of leading developed nations.

8. Titan Medical Inc. (NASDAQ:TMDI)

Number of Hedge Fund Holders: 1

Titan Medical Inc. (NASDAQ:TMDI) is a Toronto, Canada-based robotics company that is focused on developing robotics technology for use in single-access surgery through its 2D and 3D high-definition vision systems and other instruments aimed to streamline the surgeon workstation. The company focuses on improving patients’ surgical outcomes by lowering recovery times and reducing scarring.

CEO Cary Vance thinks the company’s ENOS surgical platform is expected to perform well when it enters the clinical arena in 2023 and achieves the commercial stage by 2025. Mr. Vance served on the company’s Board for over two years before taking over as CEO in July 2022. The Enos surgical platform has lights, a camera, and multiple surgical arms to provide an integrated work experience. Experts believe that intense competition in the surgical robotics segment is pushing companies like Titan Medical Inc. into innovating to capture greater market share.

Titan Medical Inc. stands out from more recent Robotic Assisted Surgery (RAS) entrants with its portfolio of approximately 225 patents and applications, making it one of the best robotic stocks under $10.

7. Viomi Technology Co., Ltd (NASDAQ:VIOT)

Number of Hedge Fund Holders: 1

Viomi Technology Co., Ltd (NASDAQ:VIOT) is a Chinese robotics company that is working on integrating the power of 5G with the internet of things (IoT) into consumer electronics.

Viomi Technology Co., Ltd is backed by leading Chinese smartphone manufacturer Xiaomi. The company serves over 5.9 million households through its 60-plus consumer electronic appliances and has more than 900 patents on smart home products. Viomi Technology Co., Ltd has developed a sizable market in China, but there is still substantial room for growth given the country’s growing middle class. The extensive range of products offered by Viomi Technology Co., Ltd, including intelligent washing machines, AI-powered refrigerators, and smart vacuum cleaners, provides the company with an opportunity to cross-sell products to its clientele.

Furthermore, Viomi Technology Co., Ltd has also revealed a new share buyback plan of around $10 million over the next year to enhance shareholder returns. Analysts think Viomi Technology Co., Ltd is trading at a discount to its fair value. The company has a forward P/E ratio of 6.29, significantly lower than the industry average of 9.39x.

Renaissance Technologies was the leading hedge fund investor in Viomi Technology Co., Ltd during Q3 2022.

6. Myomo, Inc. (NYSE:MYO)

Number of Hedge Fund Holders: 2

Myomo, Inc. (NYSE:MYO) is a Boston, Massachusetts-based medical robotics company known for providing increased mobility for those suffering from neurological disorders and upper-limb paralysis. The company has developed and patented arm braces to restore function in paralyzed or weakened arms.

In a research note issued on September 28, Ben Haynor at Alliance Global Partners assigned Myomo, Inc. stock a target price of $6 along with a Buy rating. Myomo, Inc. has requested the Centers for Medicare & Medicaid Services (CMS) to re-categorize the MyoPro as a brace as opposed to durable medical equipment. The change in category will surely benefit Myomo, Inc. as it will make their proprietary braces more mainstream. Furthermore, insurers reimburse the cost of durable medical equipment on a rental basis, while the cost of a brace is reimbursed on a lump-sum basis.

Myomo, Inc. is considered one of the best robotic stocks under $10 due to improving business fundamentals. During Q3, the company experienced exceptional growth, with 419 patients entering the reimbursement process. By adding more than 1,200 candidates in 2022, Myomo, Inc. reached a record-high number of medically certified patients interested in using MyoPro to restore action in their immobile arms.

While Myomo, Inc. is one of the best penny stocks in the robotics industry, stocks like International Business Machines Corporation, Stryker Corporation, and Rockwell Automation are among the leading players in the industry.

5. ReWalk Robotics Ltd. (NASDAQ:RWLK)

Number of Hedge Fund Holders: 3

ReWalk Robotics Ltd. (NASDAQ:RWLK) is an Israeli medical technology company focused on designing, developing, and commercializing exoskeleton suits for patients recovering from a stroke.

Swayampakula Ramakanth at H.C Wainwright has given ReWalk Robotics Ltd. stock a Buy rating with a target price of $2.50 as of August 10. The company has a strong affiliation with Veterans Affairs due to its ReWalk 6.0 device. The device is a battery-powered wearable exoskeleton that has motors at the hips and the knees. It provides the walker with the center of gravity and simulates a normal walking movement. ReWalk Robotics Ltd. is working with the Centers for Medicare & Medicaid Services (CMS) to expand access to exoskeleton devices for people suffering from spinal cord-related injuries.

In its Q3 2022 results, the company reported that its balance sheet is solid, with means to fund both organic growth and a few high-quality investment opportunities. Additionally, ReWalk Robotics Ltd. has a running share repurchase program that was started in Q3 2022. The company has repurchased a total of $863,000 worth of stock since the program’s launch, or roughly 1.4% of the outstanding shares. ReWalk Robotics Ltd.’s strong expansion plans make it one of the best robotic stocks under $10.

4. Innodata Inc. (NASDAQ:INOD)

Number of Hedge Fund Holders: 3

Innodata Inc. (NASDAQ:INOD) is a Hackensack, New Jersey-based data engineering company focused on delivering AI solutions to leading corporations worldwide.

The company is diversifying by expanding its focus to support the AI function of large-scale robotics. One such initiative is led by Dexai Robotics AI kitchen robot Alfred. The robot can detect ingredients, make meals, and identify spills to prevent the waste of food. The robot rolled out in commercial kitchens last year, and new features are being continuously added.

Rahul Singhal, Chief Product Officer at Innodata, thinks that a lack of training data hinders the advancement of robotics. Innodata Inc. intends to become a leading player in providing data for robot training as the size of the industrial robotics industry is expected to rise from $23.6 billion in 2020 to $74 billion by 2026. Furthermore, Innodata Inc.’s Q3 revenue of $18.4 million was higher than the guidance provided by the management. The company expects to generate more than $10 million in adjusted EBITDA next year, making it one of the best robotic stocks under $10.

As of Q3 2022, Innodata Inc. was held by 3 hedge funds.

3. Lantronix, Inc. (NASDAQ:LTRX)

Number of Hedge Fund Holders: 10

Lantronix, Inc. (NASDAQ:LTRX) is an Irvine, California-based software as a service (SaaS) company that is focused on providing connectivity and engineering services, hardware, and turnkey solutions for the IoT and Remote Environment Management (REM).

The company has exposure in the robotics segment through its fully-owned subsidiary, Intrinsyc Technologies. Lantronix, Inc. believes that for robots to become mainstream, developers require a platform that is accessible and easy to use. The subsidiary has worked with Misty Robotics to develop the Misty II robotics development and learning platform used in the education and eldercare industries.

Lantronix, Inc.  posted its Q1 FY23 results after the closing bell on November 9. Revenue increased by 14.8% YoY to $31.8 million, while the adjusted EPS of seven cents was three cents higher than the consensus forecast. Analysts think Lantronix, Inc. has the potential to expand its operations and provide greater upside to investors in the long run, which makes it one of the best robotic stocks under $10.

2. Helix Energy Solutions Group, Inc. (NYSE:HLX)

Number of Hedge Fund Holders: 20

Helix Energy Solutions Group, Inc. (NYSE:HLX) is a Houston, Texas-based offshore drilling company that has gained exposure in the robotics industry through its remotely operated vehicles (ROVs) that aid in the operation of well intervention and construction of offshore oil and gas facilities.

Helix Energy Solutions Group, Inc. has assigned two dedicated vessels on a long-term basis to provide support to the robotics segment. In late August, one of the vessels received a 180-day decommissioning contract in Thailand. The contract is set to start in Q4 2022. Experts believe that the robotics division of Helix Energy Solutions Group, Inc. can gain significant market share in the expanding offshore drilling industry. Helix energy’s Robotic Jet trenching services are integral in the offshore wind industry. The division observed a 33% YoY increase in revenue during Q2 2022 with an asset utilization rate of 94%.

Millennium Management raised its stake in Helix Energy Solutions Group, Inc. by over 5000% during the third quarter of the year.

1. Aurora Innovation, Inc. (NASDAQ:AUR)

Number of Hedge Fund Holders: 22

Aurora Innovation, Inc. (NASDAQ:AUR) is a Pittsburgh, Pennsylvania-based company focused on self-driving vehicle technology, which is an integral requirement for autonomous driving vehicles. The automobile industry has invested $75 billion in refining self-driving technology as of 2022.

Experts believe that autonomous vehicles are a proposition that can take a couple of decades to roll out completely, and the public markets need to have a long-term view of the technology. According to an internal memo sent out by CEO Chris Umson, Aurora Innovation, Inc. could look to sell itself to Microsoft Corporation (NASDAQ:MSFT) or Apple Inc (NASDAQ:AAPL). Tom White at DA Davidson gave Aurora Innovation, Inc. stock a target price of $8 with a Buy rating in a research note issued on September 29. The analyst has a positive view of the long-term prospects in the self-driving trucking sector.

Of the 920 hedge funds in Insider Monkey’s database as of Q3 2022, Aurora Innovation, Inc. was held by 22 hedge funds.

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This article is originally published at Insider Monkey.