AI led the stock market to unprecedented heights last year, beckoning interest in complementary technologies such as robotics. Thanks to game-changing advancements in AI and automation technology, the robotics space is evolving swiftly. Consequently, these developments effectively pave the way for investors to scout for the most undervalued robotics stocks to buy in April.
To be fair, the development of Robotic AI hasnt been at the same pace at which generative AI or branches of the technology are growing. Nevertheless, the sector has been showing remarkable progress, and AI can potentially take things up a few notches. Improvements in robot durability and functionality are a testament to what lies ahead. That said, three stocks are leading the charge in robotics, offering strong long-term upside potential.
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Intuitive Surgical(NASDAQ:ISRG) is a force to be reckoned with in the fast-growing robotic-assisted surgical solutions industry. Its primary offering, the da Vinci Surgical System, facilitates minimally invasive operations with greater accuracy and agility.
Moreover, the da Vinci Surgical System has been a major needle-mover for ISRG, facilitating upwards of 13 million surgical procedures. Its incredible impact on the company can be seen in the 234% jump in sales to $7.1 billion from 2014 to last year. Also, its steady income streams have had a similar impact on its eye-catching bottom-line numbers.
ISRG has been killing it by posting strong numbers late despite operating in an unconducive market. It comfortably beat analyst estimates in three out of the four past quarters across both lines by considerable margins. In its most recent quarterly report, revenues were up to $1.93 billion, a 16.51% increase on a year-over-year (YOY) basis. Likewise, net income came in at an impressive $606.2 million, beating expectations by more than 85%. Additionally, with an aging population, expect ISRG to continue posting similar numbers for the foreseeable future.
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Defense solutions providerKratos(NASDAQ:KTOS) is a critical cog in the wheel, driving innovation through its robust product portfolio. It specializes in the development of modern military operations and the deployment of unmanned systems.
These products are effectively designed for surveillance, reconnaissance, and combat operations. Over the years, it has been an excellent wealth compounder, delivering more than 136% gain in the past decade. The impressive uptick in its price is linked to its spectacular growth in top-and-bottom-line results, marked by double-digit gains across key metrics. Moreover, recent results have been a visual treat for its investors, with it outperforming estimates across both lines in the past seven consecutive quarters.
Furthermore, as a recent article from my fellow InvestorPlace colleague, Larry Ramer, explains, Kratos has recently inked some massive contracts from the U.S. government. Perhaps the most noteworthy is its $579 million deal with the U.S. Space Force. Additionally, in March alone, it received contracts exceeding $550 million in value from the Pentagon.
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ABB(OTCMKTS:ABBNY) is a top pick in the burgeoning industrial automation, leveraging AI to push the envelope in the Industrial Internet of Things (IIOT) industry. ABBNY stock got a strong AI-powered boost in the stock market last year,gaining over 34%.
According to ABB, roughly 20% of the data produced by industrial entities undergoes analysis and an even smaller fraction results in actionable insights. Hence, it is looking to pounce on this underserved market with its power Genix software, which harnesses AI for industrial analytics, aiming to unlock valuable insights for its customers.
Despite AIs disruptive impact, ABB doesnt solely rely on its software analytics business. It runs a diversified operation providing robotics, automation, electrification, and motion products globally. Moreover, given the diversity in its revenue base, it operates a highly consistent business thats been exceptionally profitable across key metrics. On top of that, it offers a growing dividend,yielding over 2.1%.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelors of science degree in applied accounting from Oxford Brookes University.
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The 3 Most Undervalued Robotics Stocks to Buy in April 2024 - InvestorPlace