5 Best Robotics Stocks to Buy According to Hedge Funds

In this article, we will look at the 5 best robotics stocks to buy according to hedge funds. If you want to explore more robotics stocks popular among hedge funds, you can also read 12 Best Robotics Stocks to Buy According to Hedge Funds.

5. Teradyne, Inc. (NASDAQ:TER)

Number of Hedge Fund Holders: 33

Teradyne, Inc. (NASDAQ:TER) is a Boston, Massachusetts-based company that specializes in automating electronic tests and repetitive manual tasks by incorporating the power of robotics. The company has a diversified portfolio of autonomous mobile robots that aid in moving inventory accurately and swiftly.

In a note issued to investors on October 27, Thomas Diffely at DA Davidson gave Teradyne, Inc. (NASDAQ:TER) stock a target price of $105 with a Buy rating. The analyst highlighted that the company reported better-than-expected Q3 2022 results. However, Teradyne, Inc. (NASDAQ:TER) anticipates some challenges in Q1 2023 due to weakness in industrial demand and headwinds from political tensions in China. Diffely has a bullish stance on the medium to long-term outlook of Teradyne, Inc. (NASDAQ:TER) and expects the company to emerge as one of the best robotics stocks in the long run due to its financial strength.

Here’s what  Carillon Scout Mid Cap Fund said about Teradyne, Inc. (NASDAQ:TER) in its Q1 2022 investor letter:

“Semiconductor test equipment and industrial robot producer Teradyne (NASDAQ:TER) fell after offering lower than expected revenue guidance due to fewer orders from its largest customer. Semiconductor equipment companies as a group underperformed as investors feared a general slowdown in semiconductor demand if the global economy slows.”

4. Stryker Corporation (NYSE:SYK)

Number of Hedge Fund Holders: 34

Stryker Corporation (NYSE:SYK) is a Kalamazoo, Michigan-based medical technology company that is improving patient and hospital outcomes by developing innovative products in the field of medicine and surgery. The company is at the fourth position on our list of the best robotics stocks to buy.

One of the company’s notable products is Mako, a robotic arm that assists in surgery. Stryker Corporation (NYSE:SYK) claims to serve 100 million patients annually, spread across 75 countries. Although Stryker Corporation (NYSE:SYK) missed Q3 2022 forecasts primarily because of currency headwinds and inflation, the company has reported a stellar order book, reflecting the business’s momentum. Furthermore, Stryker Corporation (NYSE:SYK) increased its FY22 organic revenue growth forecast to a range of 8.5% to 9% from a prior guidance of 8% to 9%.

Diamond Hill Capital shared its bullish stance on Stryker Corporation (NYSE:SYK) in its Q3 2022 investor letter. Here’s what the firm said:

“Stryker Corporation (NYSE:SYK) was the only new addition to the portfolio in Q3. It is one of the largest medical device manufacturers with a track record of consistently outgrowing its end markets and competitors. Stryker has a highly performance driven culture with a decentralized operating model that results in strong incentive alignment within the company. We believe the management team has executed well, making small but meaningful decisions that have positioned the firm well among competitors. Management operates with a market share gain mentality and strives to be a category leader in the market they are in. Stryker also benefits from its broad portfolio of surgical tools, small and large cap hospital equipment, waste management products, etc., which enables it to address all the needs of a hospital operating room and be a one-stop shop for health care facilities. This is particularly appealing to hospitals, and it positions Stryker to be the supplier of all operating room equipment versus a single product, thus enabling the company to gain market share.”

As of Q3 2022, Stryker Corporation (NYSE:SYK) was held by 34 hedge funds.

3. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 42

The Boeing Company (NYSE:BA) is an Arlington, Virginia-based defense and aerospace company that is leading the class of co-bots, which work alongside humans and are force limited. Boeing incorporated the first robot back in 2013 in the production of its 777 planes.

Charles Armitage at Citi has opened a “30-day catalyst watch” on The Boeing Company (NYSE:BA) as of November 14. The analyst believes that the meeting between US President Joe Biden and Chinese Premier Xi Jinping could pave the way for the return of Boeing’s 737 MAX to the fleet of approved planes for use in commercial flights in China. The analyst sees the 737 MAX as the most valuable program in the company’s portfolio. Armitage gave a Buy rating on The Boeing Company (NYSE:BA) stock. Analysts think investing in The Boeing Company (NYSE:BA) could be a safe way of gaining exposure to the robotics industry.

Citadel Investment Group raised its stake in The Boeing Company (NYSE:BA) by 215% during Q3 2022.

2. Raytheon Technologies Corporation (NYSE:RTX)

Number of Hedge Fund Holders: 55

Raytheon Technologies Corporation (NYSE:RTX) is an Arlington, Virginia-based company operating in the aerospace and defense segment. The company is aggressively working on developing a robotic exoskeleton suit for the US Army. The suit enhances the human operator’s agility, endurance, and strength.

Kristine Liwag at Morgan Stanley gave Raytheon Technologies Corporation (NYSE:RTX) stock an Overweight rating with a target price of $119 in an update issued to investors on October 26. The analyst highlighted that the underperformance of the stock price has been due to a weaker outlook on defense spending and challenges related to the availability of labor. This has caused the stock to trade at a discount against its competitors, providing an attractive opportunity for investors to go long on one of the best robotics stocks. Raytheon Technologies Corporation’s (NYSE:RTX) current price levels do not account for the expected upside of the aviation industry as global traveling recovers.

Here’s what Carillon Tower Advisers said about Raytheon Technologies Corporation (NYSE:RTX) in its Q3 2022 investor letter:

“Raytheon Technologies Corporation (NYSE:RTX) announced strong results led by strength in its commercial segment, but weakness in its defense business led to investor consternation. Management guided to a recovery in this segment, citing both transitory supply chain issues and continued strong demand.”

1. Intuitive Surgical, Inc. (NASDAQ:ISRG)

Number of Hedge Fund Holders: 69

Intuitive Surgical, Inc. (NASDAQ:ISRG) is a Sunnyvale, California-based developer, manufacturer, and marketer of robotic products related to the field of medical technology. The Da Vinci Surgical System is the prime offering of the company that aids in robotic-assisted surgery.

On November 14, Richard Newitter at Truist increased the price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) from $260 to $300 and maintained a Buy rating on the stock. The analyst made this revision after meeting with the management of MedTech companies in the San Francisco Bay area. Newitter shared that the meetings yielded positive results and provided more clarity on the capital outlook and visibility of Intuitive Surgical, Inc. (NASDAQ:ISRG). The company is focused on controlling operating expenditures next year, which is expected to give a boost to its margins.

Baron Funds shared its positive outlook on one of the best robotics stocks in its Q3 2022 investor letter. Here’s what the firm said:

“We added to our position in Intuitive Surgical, Inc. (NASDAQ:ISRG), a medical device company which sells the da Vinci robotic surgical system. The stock declined during the quarter due to a slowdown in systems sales. Hospitals are cutting capex budgets due to higher inflation, higher interest rates, supply-chain challenges, and staffing shortages. Although there is risk that systems sales could remain under pressure in the near term, we think solid procedure volume results can continue. We think the long-term outlook for Intuitive is positive based on our view that the company has a long runway to convert more procedures to robotic procedures. During the quarter, the company announced a $1 billion accelerated share repurchase program, which we view as a positive signal about the valuation and business prospects.”

You can also take a peek at the 15 Most Volatile Stocks To Buy Now and 11 High Dividend Stocks by Billonaire Gabelli.