We recently compiled a list of the 10 Cheap Robotics Stocks to Invest In Now. In this article, we are going to take a look at where Accuray Incorporated (NASDAQ:ARAY) stands against other robotics stocks to buy now.
Global Robotics Market Outlook
The robotics industry, which has grown modestly over the past few years, has suddenly picked up pace after the emergence of AI. According to Goldman Sachs’ Head of China Industrial Technology research, the total addressable market for humanoid robots is expected to reach $38 billion by 2035, an upgrade of sixfold from a previous projection of $6 billion in 2023.
We recently covered 8 Most Promising Robotics Stocks According to Hedge Funds.
According to the International Federation of Robotics (IFR), professional service robots experienced a 30% increase in sales in 2023. IFR’s statistics department noted that more than 205,000 robotics units were sold in 2023, with Asia-Pacific accounting for 80% of global robotics sales. Transportation and logistics service robots were in huge demand and accounted for 113,000 units built in 2023, up by 35% compared to 2022. Medical robots are also in high demand, and the number surged by 36% to almost 6,100 units in 2023. The demand for surgery and diagnostics robots was the highest as they registered growth of 14% and 25% year-over-year.
The US Robotics Market
The United States is home to 199 companies engaged in robotics, with 66% producing professional service robots, 27% consumer service robots, and 12% medical robots. China ranks second after the US with 107 service and medical robot manufacturers and Germany ranks third with 83 companies.
According to IFR, the US manufacturing companies have invested significantly in automation, and the industrial robot installations surged by 12% to 44,303 units in 2023. Whereas, robotics installations in the electrical and electronics industry increased to 5,120 units in 2023, up by 37% year-over-year.
Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) and Robo Global Robotics and Automation Index ETF (NYSE:ROBO) have returned more than 11% over the last year, respectively. Given the rising demand for humanoids and automation systems, robotics stocks present a promising area for investors to explore.
You can also visit and see the 12 Best Penny Stocks to Invest in According to the Media.
Robotic arms performing diagnostic tests in a healthcare technology lab.
Our Methodology
To determine the list of cheap robotics stocks to invest in, we shortlisted the companies mainly involved in robotics with an analyst upside of more than 25%. Cheap, in the context of this article, means stocks that Wall Street analysts believe are undervalued and will skyrocket to higher share prices. We have ranked the cheap robotics stocks to invest in based on their popularity among hedge funds, as of Q3 2024, in ascending order.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Accuray Incorporated (NASDAQ:ARAY)
Analyst Upside (as of January 11): 185.71%
No. of Hedge Fund Holders: 14
Accuray Incorporated (NASDAQ:ARAY) is a healthcare firm that specializes in the design, development, and sale of radiosurgery and radiation therapy systems for tumor treatment. The CyberKnife System is the company’s most prominent robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of primary and metastatic tumors outside the brain.
Accuray Incorporated (NASDAQ:ARAY) has experienced notable progress, especially in China. During Q1 FY25, the company’s sales soared over 30% year-over-year in China, driven by customer demand in both Type A and B market segments. The company’s Tomo C, a fast and effective radiation delivery device, is targeting the growing Type B market in China, which is expected to grow to $5 billion over the next five years. The company also maintains its robust customer installations and increasing backlog in the Type A segment.
Tomo C’s production in China will increase the company’s product shipments in the coming quarters, leading to improvement in sales and profitability. In addition to China’s robust progress, the company experienced revenue momentum in the APAC region, driven by first-in-country shipments in Thailand, the Philippines, and Myanmar. The customer base in EIMEA and Japan increased by 4% and 3% in Q1, respectively. The company surpassed Q1 FY25’s earnings and revenue estimates and analysts expect ARAY to carry the same momentum during the next three quarters.
Overall, ARAY ranks 7th on our list of Cheap Robotics Stocks to Invest in Now. While we acknowledge the potential of ARAY to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ARAY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
