(“Open to the Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Brokerage services for US-listed, registered securities are offered to self-directed customers by Open to the Public Investing, Inc. Product offerings and availability vary based on jurisdiction. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy. You should consult your legal, tax, or financial advisors before making any financial decisions. All Rights Reserved.Īll investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns. I believe it can definitely pull off better gains than ABB, but the forward dividend yield here is a little less at 1.7%.© Copyright 2023 Public Holdings, Inc. Analysts forecast 15% annual earnings growth over the next three years, surpassing other industrial automatons. Management believes order patterns will normalize due to strong underlying demand persisting from manufacturing and machine builder customers.įinally, ROK stock does trade at a 22-times forward earnings premium, so it’s not cheap. Sure, Rockwell’s backlog metric hasn’t been impressive, but that is normal with improving lead times. The company expects 17% growth in high-margin annual recurring revenue this year. Underpinning this growth is Rockwell’s advance into higher-margin software offerings, including cybersecurity, simulation, and cloud-based manufacturing analytics. Rockwell anticipates full-year fiscal 2023 sales growth of 14-16%, with a 25% increase expected in the company’s adjusted earnings. Although the company faced component shortages and logistics issues during the quarter, demand for its automation systems remains robust. In its fiscal Q3 2023, Rockwell delivered 13.7% sales growth and 13% adjusted earnings per share growth year-over-year. The company anticipates at least 10% revenue growth and greater than 16% EBITA margins for 2023. With shares trading at a reasonable 19-times earnings and offering a 2.6% dividend yield, ABBNY stock presents an attractive way to gain robotics exposure alongside stability from its diversified industrial portfolio. Although some investors worry about a cyclical downturn impacting ABB’s short-cycle businesses, its growth trajectory seems assured by a $21.9 billion order backlog, most of which is linked to resilient automation platforms. Crucially, ABB’s profitability improved substantially, with operational EBITA margins expanding 200 basis points to 17.5%, an all-time high.įurthermore, ABB sees sustainable tailwinds from energy transition spending, infrastructure investments, and labor shortages necessitating automation. This performance was driven by ABB’s leadership in automation solutions for energy infrastructure and data centers, including industrial applications. In Q2 2023, ABB continued its strong momentum, delivering 13% revenue growth amidst macroeconomic headwinds. However, ABB is one of the dominant forces in robotics, with over 400,000 industrial robots installed worldwide. Investors often overlook this $65 billion industrial conglomerate. (OTCMKTS: ABBNY) is a Switzerland-based industrial automation and robotics leader operating in over 100 countries. Here are the three robotics stocks I’ve got on my watch list now.ĪBB Ltd. These companies benefit from searing demand, high barriers to entry, and a blue-collar industry that’s ripe for disruption. In other words, while software AI stocks may soon plateau, robotics stocks still have lots of room to run. Even consumers are beginning to embrace robots for tasks like cleaning and security. With global supply chains in turmoil, warehouses and factories need robots to improve efficiency and resilience. With the labor market still painfully tight, companies are desperate to automate certain roles. Additionally, their growth runways are massive, as demand for automation solutions has never been higher. This area of robotics has far fewer players than conversational AI, giving leading companies huge competitive moats. That’s why I argue investors should shift their sights to robotics, and companies specifically involved in industrial and warehouse robotics. The AI landscape is becoming fiercely competitive, and these text-based AI companies will struggle to keep dazzling Wall Street. But while the hype around generative text models like ChatGPT is red-hot, I believe the stratospheric growth of these large language models is unsustainable. The AI boom has been nothing short of remarkable, with companies like OpenAI reaching meteoric valuations almost overnight. InvestorPlace - Stock Market News, Stock Advice & Trading Tips
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