The best robotics stocks should benefit as the world becomes more automated every day. In today’s world, robots help out with everything from working the assembly line to serving coffee. According to Allied Market Research, the global robotics industry was valued at $62.75 billion in 2019. It is projected to grow at a rate of 13.5% from 2020-2027. If this growth is achieved, the size of the robotics industry will be close to $189 billion by 2027.

Part of the reason for this growth is that robots are used for a wide range of tasks. For example, many defense contractors will use unmanned aerial vehicles to run missions. On the other hand, Amazon uses robots in fulfillment centers to help get packages out on time. Even surgeons are starting to use robotics to improve medical procedures.

Due to the number of ways that robots are used in business, it’s tough to determine what the best pure robotics stocks might be. For example, Amazon uses robots to improve its business but I wouldn’t necessarily classify it as a robotics company.

Instead, what I’ve done is identify three companies with lots of potential whose entire business revolves around robots.

Let’s take a look at the top three robotics stocks to buy.

Robotics Stocks to Buy

Note: I’m not a financial advisor and am just offering my own research and commentary. Please do your own due diligence before making any investment decisions. Also, the company behind the viral dancing robot videos is Boston Dynamics. Boston Dynamics is not publicly traded.

iRobot (Nasdaq: IRBT)

What better company to headline an article on robotics stocks than iRobot?

In all honesty, iRobot does not necessarily make the most cutting-edge products. iRobot is the company behind Roomba and Braava. Roomba is a popular robot vacuum that cleans your floor automatically. Braava is similar but uses a mop instead of a vacuum.

Selling robotic vacuums and mops might not sound like the biggest business in the world. However, that didn’t stop iRobot from reporting revenue of $1.43 billion and net income of $147 million in fiscal year 2021.

Also, the pandemic has currently put iRobot in a unique spot. People spent the majority of the past two years quarantined at home. Due to this, there was a surge in DIY projects and home maintenance. This is part of the reason that Home Depot and Lowe’s stocks have surged since 2020.

The savings rate of many American families has also soared during the pandemic. Right now, Americans have more money saved up than ever, as well as a new appreciation for improving their living spaces.

iRobot currently makes up close to half of the global vacuum cleaner market. It also has top-of-mind awareness within the industry. By this, I mean that most people immediately associate robot vacuum cleaners with Roomba. They might even use the two terms interchangeably (like tissues and Kleenex).

Due to this, when people search for new ways to improve their homes, a Roomba will probably be at the top of the list. This brand awareness helps make iRobot one of the best robotics stocks to consider. It’s up close to 15% this year and 70% over the past five years.

Intuitive Surgical (Nasdaq: ISRQ)

Intuitive Surgical pioneered the Da Vinci surgical system. This is a system that allows surgeons to use robotic hands to improve surgeries. So far, the Da Vinci system has assisted in more than six million surgeries worldwide.

Medical technology seems to be one of the industries that humans will never stop improving on. This is because it leads to more human lives saved. Improving medical procedures is beneficial for both the hospital, the surgeon and the patient. This is what makes Intuitive Surgical one of the best robotic stocks.

In 2020, Intuitive Surgical reported revenue of $4.36 billion and a net income of $1.06 billion. In 2021, Intuitive Surgical’s revenues have been rising at an average rate of around 30% year-over-year. As of Q3 2021, Intuitive Surgical has 6,525 Da Vinci Systems installed at hospitals. It also shipped a little less than double the number of systems from the same quarter last year.

One thing to note about this type of system is that it’s sticky. Since the Da Vinci system is incredibly expensive and complicated to use, hospitals are likely to continue using the system once it is set up.

Intuitive Surgical’s stock is up close to 40% so far in 2021 and over 400% over the past five years.

Teradyne (Nasdaq: TERA)

Teradyne is one of the leaders in automatic test solutions and collaborative robotics. This means that it helps other companies test their technology to make sure that it works. By doing this, Teradyne helps bring innovation to the market faster. And this approach makes it one of the top robotics stocks to buy.

For example, Teradyne might work with a company like Tesla to find defects in its autonomous driving software. Teradyne can identify these defects so that Tesla knows what to fix. Teradyne could repeat this process with a company like Amazon to fix any issues with Alexa. It could also do this with a company like Raytheon.

Due to this, Teradyne’s business is far-reaching. A few of the industries that Teradyne helps test are industrial automation, defense and aerospace, and semiconductor testing. A few of Teradyne’s notable clients are Samsung, Qualcomm, Intel and IBM.

Teradyne is a business-to-business company and, right now, there is a huge need for its solutions. Humankind is pushing the boundaries of technology in a ton of different industries and Teradyne is right there helping these companies get products to market sooner.

In 2020, Teradyne saw revenues surge 36% from $2.29 billion (2019) to $3.12 billion (2020). Net income also increased 67% from $467 million (2019) to $784 million (2020).

Teradyne’s stock is up 20% so far in 2021 and up around 500% in the past five years.

I hope that you’ve found this article valuable when it comes to learning a few of the top robotics stocks to buy. As usual, all investment decisions should be based on your own due diligence and risk tolerance.

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