Best Robotics Stock To Hold For 10 Years: When the first industrial robot was introduced in 1962, it seemed that the automation revolution had arrived. However, the flood of robots into factories never materialized. Instead, many manufacturers transferred operations outside of the United States, and those that remained struggled to adopt robotics at a meaningful scale.
Developing and deploying robots is a complicated process, and there is risk every step of the way. It’s easy to make an error when determining what sorts of tasks can be automated, and it’s even easier to choose the wrong equipment for the job.
Even with the right equipment, there is significant expense involved, and coordination of the project can be overwhelming. Robots must be installed, programmed, and maintained – and if the work changes, there is no guarantee the robot can adapt.
All of that tends to sour manufacturers on the prospect of integrating robotics into the production line. However, a new method of managing robot deployment is beginning to emerge. This method, referred to as Robots-as-a-Service (RaaS), may successfully integrate robotics on a massive scale. This should increase manufacturing efficiency and encourage businesses to return factory operations to the United States.
What Is Robots-as-a-Service?
Robots-as-a-Service (RaaS) follows the model created by other Software-as-a-Service products, which allow companies to move away from the effort, expense, and risk of hardware and software purchases.
Deployment, maintenance, and updates are handled through cloud computing services so end-users can focus on their core business functions rather than technology management.
Traditional robotics companies develop automation equipment, then attempt to sell the finished product to end-users. RaaS starts with the end-users. These companies examine business needs and survey the solutions available from robotics developers. They select appropriate equipment and manage installation, programming, deployment, and maintenance through on-site and cloud-based services.
End-users benefit because they don’t have to buy equipment outright – and they don’t have the risk of owning costly equipment that has become obsolete. They aren’t responsible for any of the setup and management. The entire project is handled by RaaS providers from start to finish.
Saman Farid, CEO of the RaaS company Formic Technologies, is confident that the US is on the cusp of widespread automation through robotics. He believes there will be two types of robotics companies – those that develop and manufacture equipment and those that handle deployment through an RaaS model.
There are opportunities for automation in nearly every industry, from manufacturing to agriculture, and the increased efficiency will create more US jobs as employers bring work back from overseas.
Formic Technologies isn’t publicly traded yet, but there are plenty of options for investors who want to be a part of the growing robotics industry. These are some of the best robotics stocks to buy now and hold for ten years.
What Is ABB Known For?
ABB (NYSE:ABB) has four major divisions:
- Process Automation,
- Motion, and
- Robotics & Discrete Automation.
The Robotics unit develops advanced factory and machine automation solutions for use across multiple industries. ABB has a global presence and has recommitted to growing its capabilities in robotics by investing in a world-class robotics research and production facility in Shanghai, China.
ABB sets itself apart from competitors through research and development of Artificial Intelligence (AI). This is key to deploying collaborative robots – those that can work side-by-side with humans.
At the moment, industrial robots provide the biggest economic benefits from an efficiency perspective, but they are nearly impossible to deploy in small spaces. It’s simply not safe for employees. That leaves small and medium-sized businesses out of luck when it comes to automation.
As industrial robots get smarter, they will be able to monitor their environment for safety, reducing the need to isolate them from their human co-workers. That means more opportunities for all types of businesses to enjoy the efficiencies associated with automation.
For investors, ABB stock has tremendous potential because it doesn’t rely on robotics alone for revenue. Certainly, the robotics business will grow, but that will occur alongside ABB’s entire product line, which supports electric vehicles and other technologies of the future. ABB is far more stable than a new robotics startup, and ABB stock even pays a dividend – currently 3.29 percent.
Why Is iRobot Stock Down?
The iRobot Corporation (NASDAQ:IRBT) gets a place on the list for longevity – and the fact that it can be credited with one of the first household robots to gain widespread acceptance.
The company launched in 1990, and the Roomba was introduced in 2002. To date, more than 40 million of the automated vacuums have been sold.
Demand for Roombas increased during the pandemic, but the company struggled towards the end of 2021. Supply chain issues and semiconductor shortages impacted production, and the Russian invasion of Ukraine has since depressed demand due to reduced consumer confidence.
The good news for investors is that iRobot stock is near 52-week lows. It may go lower before it recovers, but it is ultimately expected to deliver solid growth.
In addition to the popular Roomba series, iRobot is expanding into other home devices. It recently acquired Aeris Cleantec, maker of air purifiers, and iRobot projects this will become a $150 million business by late 2024.
Is Omnicell Stock A Buy?
Omnicell (NASDAQ:OMCL) is at the center of two rapidly growing industries: robot-enabled automation and healthcare.
The company specializes in equipment that improves efficiency and reduces errors in medication management – both of which are critical amid labor shortages that have healthcare workers exhausted and overwhelmed.
Omnicell has been around since 1992 and saw its share price peak in November 2021. Omnicell stock is down approximately 40 percent year-to-date in 2022, but that is primarily attributed to external economic factors.
Demand for Omnicell products is growing rapidly, and once customers sign on, they don’t leave. Omnicell boasts a 99 percent customer retention rate.
The total addressable market for Omnicell products is estimated at $70 billion, which means there is plenty of room to grow and expand operations.
Omnicell revenue came in at $1.2 billion for fiscal 2021, and the company projects revenue between $1.37 billion and $1.43 billion for fiscal 2022. That’s promising for those who already hold Omnicell stock, and it means greater potential returns for those who buy Omnicell stock now at its relatively low price.
Is UiPath Publicly Traded?
UiPath (NYSE:PATH) was founded in 2005 but didn’t start trading publicly until April 2021. The company launched in Romania, though its headquarters is now in New York City. It specializes in developing the complex software required to make robotic process automation possible, and it is widely considered one of the best robotics stocks for long-term growth.
Essentially, the robotic process automation (RPA) platform UiPath created can mimic human keystrokes and clicks on a computer. That’s a win for office workers who spend time on data entry and form completion. Such tasks can be automated, and the end-users don’t need programming skills to get the job done.
That’s what sets UiPath apart from the competition – and the reason why companies of all sizes are interested in UiPath’s platform. In a tight labor market, nothing increases job satisfaction more than automating dull manual tasks so that employees can focus on more satisfying projects. UiPath reported that its revenue increased by 32 percent year-over-year for the fiscal first quarter (the three months ended April 30, 2022), and all signs point to continued growth.
True, UiPath stock is down roughly 75 percent since the UiPath IPO, but that could be good news for investors opening a position today. ARK Invest’s Cathie Wood seems to think so.
ARK Invest’s family of exchange-traded funds has been buying quite a bit of UiPath stock. In fact, UiPath now has a spot in the top ten largest holdings of the ARK Innovation ETF. In short, UiPath stock is clearly one of the best robotics stocks to hold for ten years.
Best Robotics Stocks: The Bottom Line
Robots have been around for decades, but widespread deployment has proven difficult. The risk and complexity associated with purchasing, installing, and programming equipment is too much for many companies.
However, supply chain issues and worker shortages have prompted innovation. Simpler solutions, including Robots-as-a-Service (RaaS), remove most of the risk while delivering all of the benefits.
That’s likely to drive significant growth in the robotics industry over the next ten years. ABB, iRobot, Omnicell, and UiPath stock are strong contenders for leading their respective industry niches.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.