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How To Invest In Robotics | What Must I Know

Do you want to learn how to invest in robotics?

The robotics industry is one of the largest markets in the technology space today. What started as a simple design to help humans lift and carry heavy equipment has now developed into an advanced machine capable of thinking, learning, and performing countless activities without the help or guidance of any human.

Robotics influences every aspect of work and home. It can positively transform lives and work practices, raise efficiency and safety, and provide enhanced service.

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Overview of Robotics and Automation Industries/Market.

Robotics is a developing field integrating computer science and engineering to create robots. In robotics, machines are designed to help humans in daily endeavors.

Today, robotics is a rapidly growing field as technological advances continue; researching, designing, and building new robots serve various political purposes, whether domestically, commercially, or military. We are seeing an evolved and expanded definition of robotics that includes the development, creation, and use of bots that explore Earth’s harshest conditions, robots that assist in law enforcement, and even ones that assist in health areas.

Robotics technology is the development of machines programmed to act on command using their memory. Robotics are devices that can perform tasks the way people do but without the assistance of human interaction.

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Why Invest in Robotics Market?

The increase in the use of robotics and automation makes it one of the most investment avenues for investors in the nearest future. The already well-established robotics sector is entering a new round of long-term growth that should propel many of the companies involved even higher.

This is the best time to add the robotics market investment to your portfolio, and here’s why:

  • The robotics market is poised for growth. Robotics Investing News reports that in 2017, the robotics market was $39.3. in 2020, it is up by $ 100 billion. Research also shows that before 2025, it would go double that amount. It has so much potential, and as such, it is a very good opportunity to make money. This growth is tied to the rising adoption of robotics technology across various industries, including defense and security, manufacturing, electronics, automotive, and healthcare.
  • The robotics market is not just about investment. You can put your money on the market and still make substantial gains in many options. You can invest in specific stocks for companies that interest you or in iRobot (NASDAQ: IRBT). Alternatively, you can also use robotics ETFs to invest in this sector as a whole. To kick off, you need to explore these options, find the one that suits you, research it, then dive in.
  • Investing in robotics is fun and exciting. Many people enjoy investing more when they care about what they are investing in. If you can get passionate about putting your money into something, then the odds are that you will enjoy the whole process.
  • You are investing for the future. Very soon, robots will be everywhere. There will be more and more opportunities to invest in, but like with any investment, the earlier you’re in, the better.

For long-term investors, there would be ups and downs along the way, but the financial drive should be to remain strong.

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How to Invest in Robotics, Robotics Stocks, and Robotics ETFs.

The robotics sector is fast growing as it takes place in various sectors requiring automation.

How to Invest in Robotic Stocks

If you wish to invest in robotics stocks, you could go through online brokers, robo-advisors, or even invest with your employer. The easiest way to buy stocks is through an online stock broker and buy stock directly from the company.

How To buy stocks from an online stockbroker

Here are the steps to take:

  • Pick a broker, sign up, and fund your account.
  • Research the stocks you want to buy. Your aim while doing this research is simple- you are looking for a company in which you want to become a part owner.
  • Decide how many shares to buy. Depending on your portfolio, this should be relatively easy to decide.

How to buy stocks directly from the company

There is no shortage of robotic stocks to choose from. Here are some of the best robotic company stocks you should look out for:

  • iRobot- iRobot is a consumer robot company that designs and builds robots. Its portfolio includes mapping, navigation, mobility, and artificial intelligence concepts. It is also famously known for creating the Roomba, a floor-vacuuming robot, and more recently, its mopping product, Braava.
  • PTC (NASDAQ: PTC)- This robotics company stands out in developing software that allows accuracy and collaboration for the robot design process. The company made $1.46 billion for the fiscal year of 202, up to 16% year-on-year. Several manufacturers are now moving towards digitization and smart factories, meaning there will be more potential for PTC to grow as a business. Future predictions by analysts are promising, expecting $500 million in free cash flow in 2023, while for 2024, it’s predicted that PTC will deliver a free cash flow of around $850 million.
  • Raytheon- This robotics company helps the defense force by offering autonomous aircraft with eyes in the sky, including drones. The company expects growth of around 6% to 8%. This robotics company has been working on an exoskeleton that helps logistics workers move heavy military equipment.
  • Boston Dynamics- This robotics company creates human and animal-like robots that do everything from carrying heavy loads in factories to performing reconnaissance for the military. It has a stable of nine robots that all perform different tasks.
  • Stryker Corporation: One of the largest biotechnology companies in the U.S. that make robotic arms that assist surgery machines. Using 3D modeling of bone anatomy, the company’s Mako robots assist surgeons in joint surgeries for partial and total hip and knee replacements.
  • AeroVironment Inc.- AeroVironment is a developer of unmanned aircraft systems for the pentagon and dozens of other allied nations. AeroVironment’s six unmanned robots can be launched by hand for reconnaissance missions or via aircraft carriers to defend U.S. territories and ships.

How To Invest In Robotics ETFs

An Exchange Traded Fund (ETF) is a type of security that tracks an index, sector, community, or another asset, but you can buy or sell on a stock exchange the same as a regular stock.

ETFs are the way to go for investors who would instead put their money in the robotics sector as a whole rather than a single company. There are currently two ETFs for investors to choose from, and they track various companies in the industry.

  • Robo Global Robotics and Automation ETF (ARCA: ROBO)- This ETF was the first robotics ETF to launch. It tracks companies involved in the robotics and automation industries; to be included, companies must receive a portion of their revenue from robotics and automation products, processes, services, or devices. This ETF currently holds 86 companies, with its top holdings including Cognex and Vocera Communications.
  • Global X Robotics & Artificial Intelligence ETF was launched on September 12, 2016. It is the second robotics-related ETF. It provides exposure to companies developing and producing robotics and artificial intelligence solutions. Companies must earn much of their revenue from robotics to be considered for the ETF.

When researching robotics stocks and ETFs to invest in, here are four distinct groups to consider:

  • Companies that make core automation and robotics technology
  • Companies that make technologies and components that work with or in robotics
  • Industrial software companies are an integral part of the small automation revolution and the segment in which the highest growth rates are likely to be found.
  • Companies that are using robotics and intelligent automation to enhance their product offerings to existing customers. This is an intriguing group that can fly under the radar of many investors.

Best Robotics Companies to Invest in

The main drivers triggering investment in robotics include the capabilities of robots, the unburdening of employees, and brand perceptions around new technologies. The Robot Report recorded 28 robotics investments worth more than $4.8 billion in April 2021. Here are the best seven robotics companies to invest in.

  • Cognex
  • iRobots
  • ABB (NYSE: ABB)
  • Rockwell Automation
  • Rewalk Robotics
  • Raytheon
  • PTC (NASDAQ: PTC)

#1. Cognex

Cogne is the world’s leading provider of vision systems, software, sensors, and industrial barcode readers used in manufacturing automation.

Cognex provides machine-vision products that obtain and analyzes visual information to automate tasks where vision is necessary. They also offer machine-vision technologies that automate the manufacturing and tracking of discrete items, including mobile phones, medications, and automobile tires.

Visit their website here.

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#2. iRobot (NASDAQ: IRBT)

iRobot is a consumer robot company that designs and builds robots. Its portfolio includes mapping, navigation, mobility, and artificial intelligence concepts. It is also famously known for creating the Roomba, a floor-vacuuming robot, and more recently, its mopping product, Braava. iRobot has given guidance for the full year 2020 revenue of $1.3- $1.4 billion. This is very impressive, considering the company has a market cap of $2.1 billion and could provide a value-play for investors in a market that has become bloated.

Visit their website here

#3. ABB (NYSE: ABB)

ABB is a leading power and automation technology company with a robotics and discrete automation division that offers machine and factory automation solutions and a suite of wide-ranging robotics solutions and applications.

Visit their website here

#4. Rockwell Automation (NYSE: ROK)

Rockwell Automation provides industrial automation power, control, and information solutions through two segments: Architecture & software and control products & solutions. The former focuses on various hardware, software, and communication components of Rockwell’s integrated control and information architecture. At the same time, the latter holds a range of products that perform multiple control disciplines and monitoring applications. The company’s expected earnings growth rate for the current year is 12.5%.

Visit their website here

#5. Rewalk Robotics (NASDAQ: RWLK)

Rewalk Robotics is a medical device company. It works to design, develop and commercialize exoskeletons that allow people with mobility impairments the ability to stand and walk. Augmenting robots either enhances current human capabilities or replaces the capabilities a human may have lost. The field of robotics for human augmentation is where science fiction could become a reality very soon, with bots that can redefine the definition of humanity by making humans faster and more robust.

Visit their website here

#6. Raytheon

In Waltham, Massachusetts, Raytheon designs robots to help soldiers on the ground and autonomous aircraft to defend the skies. The robotics company works on an exoskeleton that helps logistics personnel move heavy military equipment.

Visit their website here

#7. PTC (NASDAQ: PTC)

This robotics company stands out in developing software that allows accuracy and collaboration for the robot design process. The company made $1.46 billion for the fiscal year of 202, up to 16% year-on-year.

Several manufacturers are now moving towards digitization and smart factories, meaning there will be more potential for PTC to grow as a business. Future predictions by analysts are promising, expecting $500 million in free cash flow in 2023, while for 2024, it’s predicted that PTC will deliver a free cash flow of around $850 million.

Visit their website here.

Conclusion

Robots enable companies to save costs and bring back previously outsourced processes. They help address the skills gap by fulfilling the dirty and dangerous tasks that make some positions challenging to keep filled. Investing in robotics should be one thing every investor should look out for.  

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