As the human world hurtles into a future shaped by cutting-edge technologies, the robotics sector stands at the forefront of transformative growth. The article delves into the promising trajectories of three robotics stocks, each with the potential for a staggering 250% growth by 2025.
The first one’s focus on industry verticalization, with 70 tailored solution accelerators, positions it uniquely as a solution provider. On the other hand, the second one showcases robust growth in placements and utilization, coupled with strategic moves like the impending launch of a decisive product. Meanwhile, the third one navigates market challenges with a proactive cost restructuring approach and strategic collaborations, signaling resilience amid declining sales.
Read more to explore these three robotics stocks’ innovative strategies and growth prospects, each illuminating a distinct path toward solid growth potential.
A magnifying glass zooms in on the website homepage of UiPath (PATH).
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UiPath’s (NYSE:PATH) focus on industry verticalization as a strategic priority may serve as a vital fundamental. The availability of 70 solution accelerators in the marketplace tailored to specific industries showcases UiPath’s focus on capitalizing on unique challenges faced by organizations in various domains.
Fundamentally, this industry-focused approach broadens UiPath’s market reach. Also, it positions the company as a solution provider rather than a one-size-fits-all automation platform. This is particularly crucial in industries with specific regulatory requirements, where a tailored solution can deliver more significant value. The number and popularity of downloads for accelerators such as IT Service Management Software user provisioning and two-way match invoice processing for Coupa (NASDAQ:COUP) and SAP (NYSE:SAP) indicate a strong market demand for industry-specific solutions.
Furthermore, UiPath’s collaboration with SAP and strategic partnerships with companies like The Arnott’s Group suggests the company’s lead in expanding its reach through synergistic relationships. The strategic integration with SAP enables UiPath to tap into SAP’s customer base and offer complementary automation solutions. Also, the selection of UiPath by The Arnott’s Group (an Australian giant in biscuit and snack food) to optimize business processes and reduce operating costs demonstrates the practical value of UiPath solutions.
This opens new revenue streams by enhancing UiPath’s credibility and market positioning. The expanded partnership with Deloitte further strengthens UiPath’s presence in the SAP ecosystem. In detail, Deloitte embeds UiPath’s AI-powered Business Automation Platform into its service delivery platform. At a broader level, UiPath’s FX-adjusted dollar-based net retention rate of 123% suggests it leads to expanding revenue from existing customers.
Intuitive Surgical (ISRG)
A sign with the Intuitive Surgical logo standing outside of a company office. ISRG stock.
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To begin with the capital front, IntuitiveSurgical (NASDAQ:ISRG) placed 1,313 multi-port systems in 2023, reflecting decisive growth from 2022. Ion placements increased from 192 to 213, and SP placements grew from 23 to 57 for the full year. Placements were strong in the United States and Japan. The use of flexible financing arrangements, especially in the U.S., played a significant role in supporting the expansion of DaVinci system portfolios.
In 2023, system utilization (procedures per installed clinical system per quarter) grew globally, reaching a new high for the multi-port platform. Utilization is crucial to patient demand, care team satisfaction, and hospital financial health. At the top line, the revenue marked 14% year-over-year growth.
Fundamentally, capital and operating expenses were on the upper end of the guidance. This reflects continued investments in R&D, expansion of manufacturing and commercial footprints, and capital amortization. Critically, there is demand strength in procedures, growth in the clinical install base, and increased utilization. Hence, this suggests continued preference by customers for Intuitive’s platforms.
Looking ahead to 2024, the company has submitted its 510(k) application for its next-generation multi-port platform, DaVinci 5. The design priorities for DaVinci 5 include bringing better minimally invasive care to more patients. The design may improve platform performance, enhance care team satisfaction, and lower the total treatment cost per patient episode. Thus, the phased launch plan post-Food and Drug Administration (FDA) clearance suggests the company’s supply and manufacturing readiness.
Lastly, conversations with regulators in Japan and Korea have been initiated. This further boosts the company’s top line (based on regulatory outcomes) through progress toward commercialization in countries outside the U.S. This is easily one of the top robotics stocks out there.
Zebra (ZBRA)
A photo of the sign for Zebra Technologies (ZBRA) outside of a building.
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Zebra (NASDAQ:ZBRA) focuses explicitly on cost restructuring and net annualized savings. The company implemented significant cost restructuring actions in late Q3 and early Q4. These actions are expected to yield net annualized cost savings of $100 million, surpassing the initial expectation of $85 million. This demonstrates Zebra’s proactive approach to optimizing its cost structure for improved profitability.
Despite the overall decline in sales (30% decline), services and software emerged as bright spots in the quarter. The diversification across products and services helps Zebra mitigate the impact of declines in specific product categories. Also, Zebra is reallocating resources to accelerate growth in underpenetrated markets, including Japan, government, and manufacturing sectors.
Additionally, there are collaborations with partners like Qualcomm (NASDAQ:QCOM). These are to demonstrate generative AI without cloud connectivity, reflecting Zebra’s focus on staying at the edge. Further, there are multiple wins with global technology providers, large healthcare systems, retail pharmacy chains, and North American retailers. These wins highlight Zebra’s solutions’ continued relevance and importance across various industries.
Financially, there was a negative free cash flow of $193 million for Q1–Q3 2023. However, the reasons behind this negative cash flow include higher interest costs, restructuring actions, and settlement payments. These issues are temporary and may not impact Zebra’s liquidity in the long term.
Finally, the 2.2x net debt to adjusted EBITDA leverage ratio with the availability of approximately $1 billion of capacity on a revolving credit facility demonstrates Zebra’s financial flexibility. Therefore, these developments may support Zebra’s value growth in the upcoming years. If you are looking for some top robotics stocks, you should take a look at this one.
On the date of publication, Yiannis Zourmpanos did not hold (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.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
