15 Best Humanoid Robot Stocks That Will Ride A $30 Trillion Opportunity According To Morgan Stanley

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12. Tenaris S.A. (NYSE:TS)

Number of Hedge Fund Investors  in Q1 2024: 22

Tenaris S.A. (NYSE:TS) is a Luxembourg based specialty steel company that sells heavy duty products such as steel pipes and casings to the oil drilling industry. It also sells pipes used in car manufacturing and other industries. The nature of its products and manufacturing operations means that Tenaris S.A. (NYSE:TS) is particularly suited to benefit from humanoids due to the robots’ weight lifting strengths and no susceptibility to injury when compared to humans. On the business front, Tenaris S.A. (NYSE:TS)’s exclusive focus on the oil industry means that its fortunes are also tied to the health of the sector. Additionally, any competition from cheap steel products can hurt its market share, and for investors, the key way to gain visibility into Tenaris S.A. (NYSE:TS)’s business is to check its backlogs. Its industrial products necessitate long lead times, and the resulting backlogs mean that the firm benefits from cash flow visibility.

Tenaris S.A. (NYSE:TS) also benefits from long term contracts. On this front, here’s what management shared during the Q2 2024 earnings call:

“This quarter we renewed our long-term contract for Shell operation in the Gulf of Mexico, and have been selected by ExxonMobil for their upcoming operation in Angola. We were also awarded the supply of casing and offshore line pipe and coatings by Woodside for Trion project in May. In the second half, we will begin deliveries of coated line pipe for Equinor Orion [ph] project in Brazil and we have an extensive backlog of order for offshore projects going into 2025. Today however, as we look towards the second half we see that our sale will be lower than the sale in the first semester, affected mainly by three factors in the United States a record level of oil and gas production are being sustained even if drilling activity decreased, reduced overall demand for pipes.”

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