Buy 3 Manufacturing Robotics Bigwigs Amid Solid Price Upside Potential
Robotics companies are at the forefront of innovation, driving efficiency and productivity across industries such as manufacturing, healthcare and logistics. The global robotics market is poised for significant growth, fueled by technological breakthroughs, as well as rising demand for automation and advancements in artificial intelligence (AI) and machine learning.
This potential for high growth promises substantial returns to investors. Also, robotics can address labor shortages and enhance precision in tasks, thereby reducing operational costs and improving quality. This space includes companies that integrate hardware, software and AI to build intelligent machines capable of performing complex tasks autonomously or semi-autonomously.
At this stage, we recommend three robotics stocks for investment that currently have double-digit price upside potential in the short-term. These are: Emerson Electric Co. EMR, Nordson Corp. NDSN and Zebra Technologies Corp. ZBRA. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The chart below shows the price performance of our three picks year-to-date.
Image Source: Zacks Investment Research
Emerson Electric Co.
Emerson Electric is benefiting from healthy demand across automation markets, led by power, LNG, semiconductor, aerospace and defense, and life sciences. Growth in Software & Systems and Intelligent Devices groups, portfolio expansion through acquisitions and healthy cash generation support EMR’s long-term prospects. Share repurchases and dividends add to EMR’s appeal, while software and AI-enabled test capabilities broaden growth opportunities.
Emerson Electric has an expected revenue and earnings growth rate of 4.9% and 9.9%, respectively, for the next year (ending September 2027). The Zacks Consensus Estimate for next year’s earnings has improved 0.6% over the last 30 days.
Solid Short-Term Price Upside
The short-term average price target of brokerage firms represents an increase of 16.1% from the last closing price of $148.30. The brokerage target price is currently in the range of $135 -$191. This indicates a maximum upside of 28.8% and a downside of 9%.
Nordson Corp.
Nordson is well-positioned to benefit from the diversified business model and healthy demand across key segments. Strong performance in its Medical and Fluid Solutions, Advanced Technology Solutions and Industrial Precision Solutions segments is aiding the company.
NDSN’s commitment to rewarding its shareholders through dividend payouts and share repurchases is encouraging. NDSN aims to expand its market share, product offerings and customer base through strategic acquisitions.
Nordson has an expected revenue and earnings growth rate of 4.7% and 7.5%, respectively, for the next year (ending October 2027). The Zacks Consensus Estimate for next year’s earnings has improved 2.1% over the last 30 days.
Solid Short-Term Price Upside
The short-term average price target of brokerage firms represents an increase of 17.1% from the last closing price of $308.31. The brokerage target price is currently in the range of $335 -$375. This indicates a maximum upside of 21.6% and no downside.
Zebra Technologies Corp.
Zebra Technologies is benefiting from broad demand across retail, manufacturing and healthcare, with mobile computing, printing, machine vision and RFID supporting growth across both segments.
ZBRA’s integrated hardware, software and services portfolio is deepening customer adoption of automation and AI-enabled workflows, while Elo Touch and Photoneo expand its addressable opportunities.
ZBRA’s healthy cash generation continues to support share repurchases and investment, while device upgrade cycles and growing software adoption strengthen the longer-term outlook. ZBRA’s expanding transportation and logistics pipeline also supports future growth opportunities.
Zebra Technologies has an expected revenue and earnings growth rate of 15.2% and 28.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 9.4% over the last 60 days.
Solid Short-Term Price Upside
The short-term average price target of brokerage firms represents an increase of 18.6% from the last closing price of $351.81. The brokerage target price is currently in the range of $355 -$455. This indicates a maximum upside of 29.3% and no downside.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Emerson Electric Co. (EMR) : Free Stock Analysis Report
Nordson Corporation (NDSN) : Free Stock Analysis Report
Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
