10 Best Robotics Stocks to Buy According to Billionaires

5. Rockwell Automation, Inc. (NYSE:ROK)

No. of Billionaire Investors: 11

No. of Hedge Fund Holders: 39

Rockwell Automation, Inc. (NYSE:ROK) is engaged in industrial automation and digital transformation. It operates in more than 100 countries across the globe. Allen-Bradley, FactoryTalk software, and LifecycleIQ Services are some of the well-known brands of Rockwell. The company operates in three segments: Intelligent Devices, Software & Control, and Lifecycle Services. Rockwell industrial automation and information solutions are key for setting and integrating robotic systems in manufacturing and other industrial setups. For instance, Rockwell’s programmable logic controllers (PLCs) are important for the accurate and coordinated movement of robotic systems.

On March 26, Julian Mitchell from Barclays lowered ROK’s price target from $285 to $280, maintaining an Equal-Weight on the stock. The analyst retains the rating after dropping the price target twice in March. Mitchell has adjusted targets in the multi-industry group as part of a Q1 preview. The analyst expects revenue and margin pressure alongside lower investor expectations. However, Mitchell underscores a potential correlation between Rockwell’s sales performance and the political environment, especially considering the historical context of the company’s sales boost following the 2016 elections.

Madison Dividend Income Fund stated the following regarding Rockwell Automation, Inc. (NYSE:ROK) in its Q4 2024 investor letter:

“This quarter we want to highlight two new relative yield investments made during the quarter. The Fund purchased Rockwell Automation, Inc. (NYSE:ROK) as a new Industrial holding. ROK is a high-quality global industrial automation equipment and services company. We believe it has a sustainable competitive advantage due to its large installed base of mission-critical automation equipment, high customer switching costs, strong brand reputation, and intangible assets.

ROK experienced a cyclical downturn in orders, revenues, and earnings in 2024 that created an opportunity to purchase stock at an attractive valuation. As shown in the graph below, ROK had a relative dividend yield of 1.4x the S&P 500 at the time of purchase, which was its highest relative yield since the 2008-2009 financial crisis. Company orders appear set to trough throughout 2025 and long-term demand for automation products should grow faster than GDP, driven by favorable secular trends including U.S. reshoring and supply chain de-risking. ROK has an A-rated balance sheet by Standard & Poor’s and has raised its dividend by an average of 5% over the past five years. We expect continued dividend increases going forward.”