The Three Best Robot Stocks

#Robotics is an easy to understand investment thesis that's trickier than it sounds. Sure, there are plenty of ETFs for exposure to #robots and #AI, but finding the "best" robot stock means something different for everyone. After more than five years spent publishing more than 180 research pieces on robotics companies, both public and private, we found three we like. We're holding one robot stock already and we'd like to hold one more. Here are three candidates for our next robot stock. The three companies on our shortlist are all compelling ways to play robotics, aside from the reservations we’ve pointed out today. Robotics is an area we’d like more exposure to. If you have a robotics company you think we ought to consider, please drop it in the comment section below. Nothing under $1 billion market cap, please.
RESEARCH PIECES USED IN THIS VIDEO:
1. What's the Best Robot Stock to Invest In?
www.nanalyze.com/2022/07/best...
2. Which Robotics ETF is The Best One to Buy?
www.nanalyze.com/2020/08/whic...
3. A Legal Showdown: AutoStore vs Ocado Group
www.nanalyze.com/2021/12/auto...
4. AutoStore Stock: A Warehouse Automation Pure Play
www.nanalyze.com/2021/10/auto...
CHAPTERS:
00:00 Intro
01:07 Searching for the best robot stock
02:46 Our robotics exposure
03:44 A robotic surgery stock
07:25 A machine vision stock
10:37 A warehouse automation stock
15:28 Conclusion
ABOUT US:
This video is brought to you by Nanalyze, a boutique media and research firm founded by finance professionals with decades of experience. We share insights about #DisruptiveTechnology #investments in a language that is future-proof and easy to understand.
Read all the Nanalyze Premium articles you'd like for free! Sign up for a 30-day trial of our monthly subscription with no strings attached: www.nanalyze.com/become-a-nan...
#ThreeBestRobotStocks #nanalyze

[@winspyre]

Liked before watching. Pretty cool work.

[@Nanalyze]

Thank you for taking the time to let us know Eren!

[@Stan_144]

My favourite is Ekso Bionics .. Last month they received FDA clearance for EksoNR in multiple sclerosis. They also have a lot more cash than the current market cap. Possible multi bagger in the next 2 years.

[@Nanalyze]

Describing a $21 million market cap stock as a possible multi-bagger fails to convey the risks inherent to investing in a company that small. Others may want to take a punt, but we wouldn't touch that with a ten-foot pole.

[@derrickkwilliams]

$SYM Symbotic? Why not? Walmart invested. Hum….. why not because it’s a startup? I bought shares at $10.96. Will add some more hopefully if the market sells off again. Thanks for all you do. You guys are wonderful!!!!!

[@Nanalyze]

Yep, that's the one we're going to look at next. Here's our first piece on them pre-SPAC: www.nanalyze.com/2022/01/symbotic-stock-warehouse-automation/ Now that we have some proper regulatory filing documents we should be able to paint a much clearer picture.

[@patric1337]

Great Video!

[@Nanalyze]

Really appreciate that feedback Patrick!

[@Cyclops0000]

Some nice sounding picks. Never really dabbled in robotics hardware companies. Only one I've been keeping an eye on is a penny stock called Kraken Robotics. They make marine robots for offshore repair, research, militiary and salvage. Impressive tech and they seem to keep getting new contracts but obviously they wouldn't be a penny stock if there weren't some internal issues. New contracts but not much profit growth and given their industry they tend to be too reliant on a few big customers so if one doesn't renew a contract their balance sheet will suddenly look horrible. I'm keeping them in mind if there's a huge breakthrough in offshore wind or tidal energy that means that industry will expand rapidly. More offshore construction projects = more maintenance robots needed and there should be a delay allowing you to accumulate stock over time before they get the contracts.

[@joepiv]

Hey Cyclops. We never dabble in OTC or penny stocks and strongly advise readers/subscribers to avoid them like the plague. There are far too many great companies out there to spend time trying to identify the miniscule fraction of penny stocks that won't go to zero eventually.

[@Cyclops0000]

@@joepiv Completely agree. Just think the products are cool but not really serious as an investment prospect. Most penny stock companies fail or stay as bad investments forever and the few that do improve take many years to do so during which time capital would be better put elsewhere.

[@anishnaabehistorypodcast7215]

@@Cyclops0000 Thanks for the info. I happened across Kraken and was looking at it.

[@SavvyMoneyShow]

I always watch to the end and like your pick some people would sell after 225%return but debt and liabilities covered by cash and receivables a cash cow that will grow

[@Nanalyze]

Ideally, stocks need to be given time to mature before harvesting gains. We like to use a decade-long horizon.

[@MarsRacingNetwork]

Thanks for the video-when do ya’ll think you’ll be coming out with quantigence premium?

[@Nanalyze]

You are quite welcome. Quantigence has its own website - www.quantigence.com - and the calculator is pretty cool and free. Data was refreshed a few months back and will be again later this year. Yes, the plan is to grow out Quantigence too since that's where most our assets sit (over 50%). We believe it's an excellent strategy. Note that a free Quantigence report comes with a Nanalyze Premium annual subscription. It reviews the strategy and shows exactly how we built our 30-stock DGI portfolio. Thanks for the comment and suggestion!

[@MrBeatzFactory]

I would love to see what you think about Symbotic.

[@Nanalyze]

Good eye. That's the one we need to cover next as a follow up from our original piece on them seven months ago: www.nanalyze.com/2022/01/symbotic-stock-warehouse-automation/

[@mrmurky1118]

I’ve been looking at Timken for robotics recently. What do you think about them?

[@Nanalyze]

Haven't reviewed them before but if you're a premium sub, feel free to drop us a note and we'll poll our community :) On first glance, doesn't look like there's much growth going on there. -Wyatt C.

[@Nanalyze]

They look pretty conglomerate-ish, but seem to have exposure to India (recent discussion topic). Thank you for the heads up. Joe P.

[@user-df9gq3xh2y]

# RBOT A Game changer

[@Nanalyze]

Here's our piece on Vicarious: www.nanalyze.com/2021/05/vicarious-surgical-stock-robots-vr/

[@mikenelon926]

I hold a few shares of Berkshire Grey. (BGRY) I'd love to hear your thoughts.

[@Nanalyze]

We did a piece on them here: (www.nanalyze.com/2022/04/berkshire-grey-stock-warehouse-automation/). We've had a lot of people ask so maybe we'll do a video as well.

[@brunoabdelnour348]

I suggest looking at Berkshire Grey ($BGRY), as a robotic AI stock. They became public through a SPAC, and might be at interesting value right now. Thanks for sharing all your research!!

[@Nanalyze]

You are quite welcome Bruno. We did a piece on Berkshire Grey here (www.nanalyze.com/2022/04/berkshire-grey-stock-warehouse-automation/) and may look to do a video update because so many people have asked.

[@GM4ThePeople]

Watching ABB, but their progress seems slow. Maybe there's some catalyst yet to come that will set off the age of widespread automated micro-manufacturing. Maybe energy shocks followed by a shift to renewables & storage per Tony Seba, with the resultant "free Super Power"? Or maybe they really gotta get the robot arms recursively manufacturing more robot arms, then ..., profit. ;) Thanks for all the interesting analysis, regards, G.M. o/ P.S. As you say, the inscrutable yet zazzy Japanese also make fighting robots, arms, etc.

[@Nanalyze]

Love the idea of robot arms manufacturing robot arms ;) Yes, we would have thought cobots would be ruling manufacturing by now but it's slow going. You're quite welcome and thank you for the insightful comment!

[@Nanalyze]

By the way, we've been reading that robotics hardware is where it needs to be. The problems that need solving now are all in the software stack.

[@dougtrvl888]

Hello Joe , Where does IUPATH fit into your robotics investments ?

[@Nanalyze]

@dougtrvl888 Tobias already answered and that's correct. RPA is classified under AI in our classification hierarchy. It's simply software that automates back office tasks (more or less). In other words, it helps automate redundant repetitive functions that people would rather not be doing. UiPath is a firm that saves other companies money. That's a value proposition that works in good times and bad. Our last piece in UiPath is here: www.nanalyze.com/2022/04/uipath-stock-falling-down/

[@dougtrvl888]

Thanks 🙏 Joe ! I bought 2,300 shares of IUPATH in May & its 3-4 % of my total Portfolio

[@Nanalyze]

@dougtrvl888 May would have been buying under 20, good job. It would always go lower but these are good prices relative to the IPO. And if it does go lower, don't fear if your thesis hasn't changed. I know it's unoriginal to rip on Jim Cramer because everyone does it but I can't help but mention this whenever someone brings up UiPath. Not too long ago, Big Jim said that UiPath was a great company, but if the share price kept falling, he couldn't recommend it anymore. That epitomizes what's wrong with pundits these days. Joe

[@protector7886]

Have you taken a look at Vicarious Surgical? They’re still very small but look to be coming at Intuitive’s market share. I’ve worked with Intuitive and I’m not a fan with how they treat their customers since there’s no competition.

[@Nanalyze]

Yes we have: www.nanalyze.com/2021/05/vicarious-surgical-stock-robots-vr/

[@Nanalyze]

All companies seem to be offering shoddy customer service these days tbh. It doesn't take much to show customers you care but that's gone by the wayside.

[@protector7886]

@@Nanalyze I look forward to you reviewing them again in 2023.

[@mayhemindustrial7144]

Berkshire Grey

[@Nanalyze]

We covered them in this piece: www.nanalyze.com/2022/04/berkshire-grey-stock-warehouse-automation/

[@tomfisher44]

Ford is big into robotics. not a pure play but definitely a player.

[@Nanalyze]

Making industrial robots and selling them or just using to build autos? We hadn't noted Ford as a player but will take a look. If they only build for internal consumption it's less interesting than selling them "as-a-service" ideally.

[@tomfisher44]

@@Nanalyze Ford has a walking robot named "Digit" bought from Agility Robotics, private company i think, designed to walk and carry objects for delivering items. They are also collaborating with the University of Michigan sharing a robotics research type facility looking into a variety of robotics applications.

[@joepiv]

@@tomfisher44 Thank you for the information Kurbskie K! That's on our radar now.

[@Mohammed-rr7wm]

Berkshire grey is underrated company.

[@joepiv]

Join the queue of people who have said this. ;) We'll put out a video on it soon. Here's our research piece in the meantime: www.nanalyze.com/2022/04/berkshire-grey-stock-warehouse-automation/ There's definitely some customer concentration risk and they're a lot smaller than AutoStore, and too small to meet our market cap threshold of $1 billion.

[@Mohammed-rr7wm]

@@joepiv thanks for sharing the insightful article! Berkshire grey needs to secure multi year billion dollars contract order to back what they say in the earnings calls

[@kaptitjaguarswatwa9284]

Intuive Surgical 💜💜💜🎥🎥🎥💯💯💯

[@Nanalyze]

Incoming: www.nanalyze.com/2023/10/growth-left-surgical-robots/

[@mark2167a]

How about TERAdyne? Lol! Just heard the ending now..... I will remain patience :)

[@Nanalyze]

;)

[@mark2167a]

@@Nanalyze Will you do an analysis on it at some point in the future? Appreciate your content, really good quality

[@joepiv]

@@mark2167a Just search our website as there are multiple pieces on this topic. Here's the last one: www.nanalyze.com/2022/01/teradyne-stock-forecast/

[@SavvyMoneyShow]

I also like rok

[@Nanalyze]

Here's our piece on Rockwell Automation from a few years back: www.nanalyze.com/2020/07/leading-industrial-automation-stock/

[@alfredthevarajah1344]

How about Asensus Surgical ?

[@joepiv]

Hey Aldfred. At $100 million market cap they're just too small to be on our radar. Also seems they can't get revenues to grow into something meaningful. Thank you for raising the name though! Now we're aware of them :)

[@alfredthevarajah1344]

@@joepiv Thanks for your reply 🙏.

[@Cyclops0000]

I've never quite understood the approach of "being exposed to many industries". Sure some diversification is needed for safety from major legislation or breakthrough tech that makes most of an industry obsolete quickly but many funds/investment managers seem to have fingers in dozens of pies. Doesn't that create the risk that they don't actually have deep enough knowlege on a lot of the companies they're buying? You guys at Nanalyze seem to do a hefty amount of research but it's well known that most professionals fail to beat the market and I think over diversification is why. If they held 4 or 5 industries it would be enough to spread risk and also avoid the lack of knowledge issue. I hold some big tech software, mid-tech automation, 1 EV company, 2 fintech companies and a somewhat aggressive dividend fund where 50% is reinvested & 50% goes where I choose based on where I see better value long term.

[@Nanalyze]

There's one train of thought the says, "if it's the next Microsoft, all I need is a little, if it's not, I'm glad I only risked a little." Industry is just another factor to use when considering diversification. How we've modeled our business drives our methodology and portfolio which caters to an audience of investors with breadth across many area of disruptive tech. You are correct that 95% of managers can't beat a benchmark in the long run and we don't claim to be in the 5% that can. You can always torture the data and make it say whatever you want. People take insights from our research as opposed to being told what to buy and when to sell it. Your decision to have a more concentrated portfolio makes sense. Everyone will have their own methodology and tolerance for risk. Good questions/comments you raise here.

[@whale27]

I will also say that robotics today is more of a hardware problem than a software one. Training a robot to do what we want it to do is actually.. easy. Building a humanoid robot that moves like a human, has the dexterity of a human etc. is impossible at the moment. Specialized robots (for warehousing, surgery etc.) will penetrate narrow and deep, humanoid robots will penetrate wide and deep. Hollywood depictions of this future (like iRobot) are likely to be very accurate(hopefully not the bad part). tl;dr Pay attention to the hardware in this space, hardware will determine who wins. The software is something anyone can do. Whoever wins humanoid robotics wins the whole game.

[@Nanalyze]

@whale Thank you for taking the time to comment! Our research has shown that it's now about software more than hardware. At least that's what a number of startups are claiming, Bright Machines being one of them. Some problems like grasping are still being solved with hardware innovation but it's largely down to software now. Self-driving cars are limited by software, not hardware. You mention humanoid robots and that's a topic on its own. They say that a humanoid robot will reach maturity when you tell it to go into a random house on your city block and make a cup of coffee. We could all do that. Maybe the occupant drinks tea, or doesn't drink caffeine, but if they're a coffee drinker you'll be able to find out how to make a cup. When a humanoid robot can do that, we're sorted. A good deal of solving that problem is software. Thank you for the thought-provoking comment!

[@rabywastaken]

Autostore is not available on trading212 yet, bery sed :( Guess I'll just continue to dca my (very red) position on $ISRG, it'd be pretty dumb to sell now lol

[@Nanalyze]

Yes, you never ever sell quality companies when they dip, you buy them. ISRG is a quality company, make no mistake. We've never heard of Trading212. It's always best to go with marquee name brokerage firms.

[@rabywastaken]

@@Nanalyze of course, thanks! Trading212 is a pretty popular stock brokerage in the UK, similar to eToro. I can't use American ones because I live in Europe :)

[@DRQAPPAS]

Thanks for the great content, have you look at small player in surgical robotlike vicarious surgical $RBOT.

[@Nanalyze]

Thank you for the feedback! Just over a year ago we looked at Vicarious: www.nanalyze.com/2021/05/vicarious-surgical-stock-robots-vr/