We recently compiled a list of the 8 Best Robotics Stocks Under $10. In this article, we are going to take a look at where Lantronix, Inc. (NASDAQ:LTRX) stands against the other robotic stocks under $10.
The concept of lifelike machines performing human tasks is fascinating to some and unsettling to others. However, robotics is not about replacing humans; it’s about automating repetitive tasks to allow people more time for meaningful activities. Recent breakthroughs, such as generative artificial intelligence (AI) services like ChatGPT, have accelerated the adoption of automation in organizations. Robotics is already transforming our everyday lives, from manufacturing and logistics to MedTech and even our homes, thus revolutionizing numerous industries and streamlining production lines in manufacturing. Most people interact with robots in some capacity. For example, Sony Group Corporation offers the AIBO series, an autonomous entertainment robot for the home, while iRobot Corporation provides Roomba robot vacuums for home cleaning. Additionally, companies like Alibaba Group Holding Limited and Amazon.com, Inc. use robots to automate warehouse management and customer product delivery.
According to Market Research Future, the global robotics market reached $59.7 billion in 2022 and is on an impressive growth trajectory. The market is expected to exceed $200 billion by 2030, driven by a projected 16.1% CAGR between 2023 and 2030. This growth reflects increasing robotics integration across various sectors. Reflecting this growth, a recent press release from the International Robot Federation (IFR) highlights significant investments in automation by U.S. manufacturing companies, with industrial robot installations rising by 12% to 44,303 units in 2023. The automotive industry emerged as the leading adopter of robots in the U.S., followed by the electrical and electronics sectors. The IFR reports that sales in the automotive segment increased by 1% in 2023, with a record 14,678 robots installed, building on a 47% increase in 2022 with 14,472 units installed.
The robotics industry thrives on healthy debates, and one of the most intense recent discussions centers around humanoid robots. Although this topic has been significant for decades, the rise of startups like 1X and Figure, along with projects from established companies like EV market leader Tesla, has brought humanoids back into the spotlight. Advocates argue that since our world is designed for humans, building robots in our image makes sense. Humanoid robots offer advantages in reach, the ability to navigate stairs, and dexterity.
In this context, the robotics industry has garnered attention from notable tech figures. Earlier this year, Bill Gates highlighted several “cutting-edge robotics startups and labs” that excite him, including three companies focused on developing humanoids. Gates started off with Agility Robotics, an American startup that has developed a human-centric, multipurpose robot designed for logistics work. This robot, roughly human-sized, can handle heavy loads and express “emotions” through LEDs on its face to improve interaction with human colleagues. Another notable initiative is Tevel, an Israeli startup deploying autonomous flying robots for continuous selective fruit picking, ensuring ripe apples are harvested around the clock. Gates also mentioned Apptronik, whose robots have the potential to assist astronauts on Moon or Mars missions.
Our Methodology
For this list, we sifted through various ETFs and internet rankings covering robotics stocks to compile an initial list. We then selected the top robotics stocks that were trading under $10 based on overall hedge fund sentiment toward each stock. This assessment was made using data from Insider Monkey’s database, which tracks 919 elite hedge funds as of the end of the first quarter of 2024. The list is organized in ascending order according to the number of hedge fund holders in each firm. Why do we track stocks that hedge funds pile into? 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).
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Lantronix Inc (NASDAQ:LTRX)
Share Price as of June 11: $3.66
Number of Hedge Fund Holders: 17
Lantronix, Inc. (NASDAQ:LTRX), ranked among the top three robotics stocks under $10 on our list, provides solutions for video surveillance, infotainment systems, and intelligent substations infrastructure worldwide. In addition to developing its own advanced kits and hardware designs, Lantronix collaborates with customers to implement various AI and machine learning solutions. Founded in 1989, the company is headquartered in Irvine, California.
In its third-quarter 2024 report, Lantronix posted an EPS of $0.11 and revenue of $41.2 million, the latter being up 11% sequentially and up 25% on a YoY basis, surpassing analysts’ expectations and aligning with the company’s outlook. For the current quarter, Lantronix, Inc. (NASDAQ:LTRX) expects revenue to be between $46.5 million and $51.5 million, with EPS ranging from $0.12 to $0.18.
As of the end of March, 17 hedge funds in our database were bullish on Lantronix, Inc. (NASDAQ:LTRX). George McCabe’s Portolan Capital Management holds the largest position, with 578,180 shares.
Wasatch Micro Cap Value Strategy stated the following regarding Lantronix, Inc. (NASDAQ:LTRX) in its first quarter 2024 investor letter:
“Another significant detractor was Lantronix, Inc. (NASDAQ:LTRX), which provides integrated software and application development, software as a service (SaaS) management, intelligent edge computing and a wide range of sensors and trackers. The stock moved higher early in the quarter based on expectations for strong revenues and earnings. But when the numbers were released later in the quarter, the stock plummeted because Lantronix failed to meet expectations. While we were disappointed along with other investors, we note that revenues and earnings did in fact increase—albeit modestly. Considering the attractive valuation currently, we’ve maintained our position in the company.”
Overall LTRX ranks 3rd on our list of the best robotics stocks to buy under $10. You can visit 8 Best Robotics Stocks Under $10. to see the other robotics stocks that are on hedge funds’ radar. While we acknowledge the potential of LTRX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LTRX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.