In this article, we will look at 5 best automation stocks to buy now. If you want to read our detailed analysis of the automation industry which highlights key trends, future outlook, and major players, you can go to 10 Best Automation Stocks To Buy Now.
5. Teradyne, Inc. (NYSE:TER)
Number of Hedge Fund Holders: 40
Teradyne, Inc. (NYSE:TER) designs, develops, manufactures, sells, and supports automatic test equipment worldwide. The company operates through four business segments: Semiconductor Test, System Test, Industrial Automation, and Wireless Test segments. This April, Teradyne, Inc. (NYSE:TER) announced that it has successfully completed a shipment of the 7,000th unit of its J750 semiconductor test platform to Nations Technologies. Nation Technologies is a prominent name in the Chinese security IC and microcontroller unit (MCU) industry.
On April 26, 2022, Teradyne, Inc. (NYSE:TER) released its earnings for the fiscal first quarter of 2022 in which it beat both EPS and revenue estimates. The company reported earnings per share of $0.98, beating EPS estimates by $0.09. The company generated quarterly revenues of $755.37 million, beating revenue estimates by roughly $13 million. As of May 3, 2022, the stock has a forward price-to-earnings ratio of 20.30, making it a value stock pick for investors looking to initiate positions in the automation industry.
Teradyne, Inc. (NYSE:TER) was spotted on 40 investment portfolios at the end of the fourth quarter of 2021. The total stakes of these funds were valued at $1.54 billion, up from $1.36 billion in the previous quarter with 42 positions. The hedge fund sentiment for the stock is positive.
Alkeon Capital Management is the most prominent investor in Teradyne, Inc. (NYSE:TER) as of December 31, 2021. The fund owns more than 3.7 million shares of stock which amount to stakes of $611.9 million, and cover 1.13% of the fund’s 13F portfolio.
4. Ambarella, Inc. (NASDAQ:AMBA)
Number of Hedge Fund Holders: 40
Ambarella, Inc. (NASDAQ:AMBA) develops semiconductor solutions for video processing that enable high-definition and ultra HD compression, image processing, and deep neural network processing. This April, Ambarella, Inc. (NASDAQ:AMBA) announced a strategic collaboration with Lumentum Holdings (NASDAQ:LITE) to leverage artificial intelligence and privacy applications to develop “smart” building applications.
This February, Ambarella, Inc. (NASDAQ:AMBA) released its earnings for the fiscal fourth quarter of 2022 in which it beat both EPS and revenue estimates. The company registered an EPS of $0.45 and beat estimates by $0.03. Moreover, the company’s quarterly revenues came to $90.23 million, up 45.20% year over year from $62.14 million.
On April 20, 2022, Deutsche Bank analyst Ross Seymore lowered his price target on Ambarella, Inc. (NASDAQ:AMBA) to $115 from $140 but maintained a Hold rating on the shares.
By the end of the fourth quarter of 2021, 40 hedge funds were long Ambarella, Inc. (NASDAQ:AMBA) with stakes worth $831.74 million in the company. This is compared to 37 positions in the prior quarter with stakes of $582.74 million in the company. The hedge fund sentiment for Ambarella, Inc. (NASDAQ:AMBA) is positive.
As of the end of last December, Driehaus Capital is the leading stakeholder in Ambarella, Inc. (NASDAQ:AMBA) having stakes worth roughly $119.2 million, which represent 1.21% of Driehaus Capital’s Q4 2021 investment portfolio.
3. Emerson Electric Co. (NYSE:EMR)
Number of Hedge Fund Holders: 43
Emerson Electric Co. (NYSE:EMR) designs and manufactures technology and engineering products for industrial, commercial, and consumer markets worldwide. The company operates through two segments: Automation Solutions and Commercial & Residential Solutions. As of May 3, 2022, the stock has a PE ratio of 18.20 and a forward dividend yield of 2.28%, making Emerson Electric Co. (NYSE:EMR) a compelling value stock pick that offers dividends and placing it among the top 3 automation stocks to buy now.
On February 2, 2022, Emerson Electric Co. (NYSE:EMR) announced earnings for the fiscal first quarter of 2022 in which it beat both EPS estimates by $0.04. The company reported earnings per share of $1.05 and generated quarterly revenues valued at $4.47 billion, up 7.50% year over year from $4.16 billion. Shortly after the company’s earnings release, Citi analyst Andrew Kaplowitz raised his price target on Emerson Electric Co. (NYSE:EMR) to $123 from $120 and reiterated a Buy rating on the shares. Kaplowitz contended that the company’s “strong” earnings results and a raised fiscal 2022 outlook strengthen Emerson Electric Co.’s (NYSE:EMR) position in the market and set the headway for sustained earnings growth in a recovering global economic environment.
Emerson Electric Co. (NYSE:EMR) is gaining popularity among investor circles. Insider Monkey found 43 hedge funds that held long positions in Emerson Electric Co. (NYSE:EMR) at the end of the fourth quarter of 2021. The total value of their stakes was approximately equal to $1.47 billion, up from $671 million in the preceding quarter with 41 positions.
As of the end of Q4 2021, Two Sigma Advisors is the dominating shareholder in Emerson Electric Co. (NYSE:EMR), owning more than 2.6 million shares of stock which equate to a stake of approximately $250 million.
2. Honeywell International Inc. (NYSE:HON)
Number of Hedge Fund Holders: 51
Honeywell International Inc. (NYSE:HON) operates as a diversified technology and manufacturing company worldwide. The company offers a suite of automation products and services for a range of industries, such as detection systems, warehouse automation, and sensing devices among others. As of May 3, the stock has a forward dividend yield of 1.99% and a forward price-to-earnings ratio of 22.71, which makes it an attractive stock option in the automation industry.
Honeywell International Inc. (NYSE:HON) recently released its earnings report for the fiscal first quarter of 2022 on April 29. The company’s quarterly revenues amounted to $8.38 billion and outperformed market estimates by $86.41 million. Moreover, Honeywell International Inc. (NYSE:HON) reported earnings per share of $1.91 and beat expert EPS estimates by $0.05.
On May 2, 2022, Wells Fargo analyst Joseph O’Dea raised his price target on Honeywell International Inc. (NYSE:HON) to $203 from $196 and maintained an Equal Weight rating on the shares, following the company’s earnings release for FQ1 2022.
Hedge funds are upping their stakes in Honeywell International Inc. (NYSE:HON). Insider Monkey identified 51 hedge funds long Honeywell International Inc. (NYSE:HON) with stakes worth $1.89 billion. This is compared to 45 positions in the previous quarter with stakes worth $927.73 million.
As of December 31, 2021, D E Shaw is the top shareholder in Honeywell International Inc. (NYSE:HON), with stakes worth $342.43 million in the company. The investment covers 0.28% of D E Shaw’s Q4 2021 hedge fund portfolio.
Distillate Capital, an investment management firm, published its third-quarter 2021 investor letter in which it mentioned Honeywell International Inc. (NYSE:HON). Here is what the firm said:
“The largest exited positions were Oracle, which outperformed significantly, and Texas Instruments and Honeywell, which were roughly flat versus the market in the quarter but were edged out for inclusion by other stocks that became even more attractively valued.”
1. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 63
Intuitive Surgical, Inc. (NASDAQ:ISRG) is leading the field of healthcare automation for over 12 years now. The company develops, manufactures, and markets robotic products designed to improve clinical outcomes of patients through minimally invasive surgery, with its flagship product being the da Vinci Surgical System. The company is part of both the NASDAQ-100 and S&P 500 and is placed first on our compilation of the 10 best automation stocks to buy now.
This April, Intuitive Surgical, Inc. (NASDAQ:ISRG) reported earnings for the fiscal first quarter of 2022 in which it beat both EPS and revenue estimates by handsome margins. The company reported earnings per share of $1.13, beating EPS estimates by $0.05. Moreover, the company’s quarterly revenues grew by 15.14% year over year and amounted to $1.49 billion, outperforming market consensus by $62.12 million.
On April 22, Piper Sandler analyst Adam Maeder raised his price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) to $316 from $310 and maintained an Overweight rating on the shares. The analyst noted the company’s quarterly revenues, procedure growth, and adjusted earnings all outperformed market estimates and were “solid”, even amidst a challenging procedure landscape in the quarter. Moreover, Maeder contended that Intuitive Surgical, Inc. (NASDAQ:ISRG) raised its fiscal year procedure growth guidance to 12%-16%, despite headwinds in China due to omicron, and sees the company well-positioned to benefit from sustainable financial growth.
Intuitive Surgical, Inc. (NASDAQ:ISRG) is experiencing bullish trading volumes. At the close of Q4 2021, 63 hedge funds were long Intuitive Surgical, Inc. (NASDAQ:ISRG) with stakes worth $4.20 billion. This is compared to 61 hedge funds in the third quarter of 2021 with stakes of $3.53 billion. The hedge fund sentiment for Intuitive Surgical, Inc. (NASDAQ:ISRG) is positive.
Fisher Asset Management is the most bullish on Intuitive Surgical, Inc. (NASDAQ:ISRG) as of December 31, 2021. The Ken Fisher-led hedge fund owns more than 4.3 million shares of the company, which come to stakes of $1.54 billion, up 216% from the fund’s Q3 2021 stakes in the company.
ClearBridge Investments mentioned Intuitive Surgical, Inc. (NASDAQ:ISRG) in its fourth-quarter 2021 investor letter, here is what the firm said:
“Intuitive Surgical, a maker of robotic instruments for soft tissue surgery, was another new health care addition. The market for soft tissue procedures is enormous, including those performed with the aid of the company’s DaVinci machines, whose three-dimensional imaging capabilities require smaller incisions, resulting in less nerve damage and bleeding and shorter patient stays. DaVinci machines are a $1 million-plus investment by hospitals that can be run continuously through the day, allowing for a greater number of procedures with less physician fatigue. Surgeons are trained on the device from medical school and residency on up. Combining the related training and supply chains, these purchases are very sticky. We see the opportunity for Intuitive Surgical to benefit from more indications for the devices, procedure growth, and greater sales in hospitals and surgical centers.”
You can also take a look at 11 Best Robotics Stocks To Buy For 2022 and 10 Best Machine Learning Stocks to Invest In.
