In this article, we discuss the 5 best robotics stocks to buy for 2022. If you want to read our detailed analysis of these stocks, go directly to the 11 Best Robotics Stocks To Buy For 2022.
5. Rockwell Automation, Inc. (NYSE:ROK)
Number of Hedge Fund Holders: 29
Argus analyst John Eade recently raised the price target on Rockwell Automation, Inc. (NYSE:ROK) stock to $390 from $330 and kept a Buy rating, backing the company to deliver double digits growth in the coming months based on a “clean balance sheet and high-quality earnings with a focus on shareholder returns”. New product developments at Rockwell Automation, Inc. (NYSE:ROK) are also opening up new markets for the firm. In early November, Rockwell Automation, Inc. (NYSE:ROK) raised guidance for the fiscal year 2022, saying it expected sales to grow over $8 billion as supplies improved. Rockwell Automation, Inc. (NYSE:ROK) provides industrial automation and digital transformation solutions.
Prominent hedge funds have placed their trust in Rockwell Automation, Inc. (NYSE:ROK) as well. London-based investment firm Impax Asset Management is a leading shareholder in Rockwell Automation, Inc. (NYSE:ROK) with 698,555 shares worth more than $205 million.
4. Ambarella, Inc. (NASDAQ:AMBA)
Number of Hedge Fund Holders: 37
One of the key products of Ambarella, Inc. (NASDAQ:AMBA) are low powered semiconductor products that are used for artificial intelligence-enabled image and video processing, most popularly for facial recognition software. The system-on-a-chip solutions such as this are rising in demand in the robotics market. Ambarella, Inc. (NASDAQ:AMBA) is also working on new CVflow-architecture for these chips that will match with the exact needs of clients.
Stifel analyst Tore Svanberg has a Buy rating on Ambarella, Inc. (NASDAQ:AMBA) stock with a price target of $230. In a recent investor note, the analyst backed the firm to grow revenues to more than $1 billion based on estimates for sales of the Computer Vision products.
3. Emerson Electric Co. (NYSE:EMR)
Number of Hedge Fund Holders: 41
Emerson Electric Co. (NYSE:EMR) has a strong legacy business, a trait that places it above most other companies in the robotics sector. Emerson Electric Co. (NYSE:EMR) has a stellar dividend history stretching back over six decades with close to three decades of dividend growth. In early November, Emerson Electric Co. (NYSE:EMR) raised the quarterly dividend by 2% to $0.515 per share. The forward yield was 2.15%.
Emerson Electric Co. (NYSE:EMR) markets a wide range of robotics and automation products, mostly for industrial clients. New York-based firm Millennium Management is a leading shareholder in Emerson Electric Co. (NYSE:EMR) with 450,706 shares worth more than $42 million.
2. Teradyne, Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 42
Deutsche Bank analyst Sidney Ho recently raised the price target on Teradyne, Inc. (NASDAQ:TER) stock to $170 from $150 and kept a Buy rating, noting the long-term demand drivers and rising capital intensity of the firm in a bullish analysis. Hedge funds agree with this outlook. New York-based investment firm Alkeon Capital Management is a leading shareholder in Teradyne, Inc. (NASDAQ:TER) with 3.9 million shares worth more than $433 million.
Teradyne, Inc. (NASDAQ:TER) stock is expected to benefit from the increased spending on 5G technology across the United States over the next few years. The firm makes and sells automatic test equipment used in manufacturing of robotics, 5G devices, and communications infrastructure.
1. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 61
Intuitive Surgical, Inc. (NASDAQ:ISRG) is well positioned to take advantage of the rapid growth in the robotics sector over the next few years as the balance sheet and free cash flows of the firm are impressive given the overall situation of the market. The success of the da Vinci Surgical System has given investors confidence that the firm can deliver. At the end of the third quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $3.5 billion in Intuitive Surgical, Inc. (NASDAQ:ISRG). The company markets robotics equipment for the health sector.
Goldman Sachs analyst Amit Hazan recently added Intuitive Surgical, Inc. (NASDAQ:ISRG) stock to a Conviction Buy List and maintained a Buy rating with a price target of $425, forecasting that a new system launch would be a key driver of growth for the firm in the coming months.
In its Q1 2021 investor letter, Ensemble Capital, an asset management firm, highlighted a few stocks and Intuitive Surgical, Inc. (NASDAQ:ISRG) was one of them. Here is what the fund said:
“Notable detractors to the Fund’s returns this quarter (included) Intuitive Surgical. Intuitive Surgical’s (6.3% weight in the Fund) growth slowed in 2020 as COVID hit the brakes on many elective surgeries. Given continued COVID-related risks in the US and Europe in 2021, it’s still unclear as to when elective surgeries recover to more normal levels. As such, hospitals may be holding off on planned surgical robot investments until demand rebounds. That said, in Asia, where COVID has been well contained, Intuitive Surgical’s procedures and systems utilizations improved, which bodes well for recovery in the US and EU. Most procedures can’t be delayed indefinitely or canceled, so we continue to expect a resumption of strong, durable growth as the pandemic recedes.”
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