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Industry Rank Analysis: What Does a Robot Do, Really?

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A spate of recent EPS upgrades shows us another attractive feature. These types of companies are hot share tickets -- according to covering analysts counted up by the latest Zacks Industry Ranks.

This 7-company-strong Zacks industry currently placed at #23 out of 265; an industry rank lifted +80 spots in the last week alone. There have been 6 positive EPS estimate revisions and 4 negative revisions over the last week alone.

What about bullish share price momentum reflected in technicals? These say the same thing. You want to look to invest in these companies for the long haul.

What does an industrial robot do, really? Fear not. The machine doesn’t do everything, acting like a humanoid, such as R2D2 or C3PO.

An industrial robot is a robot system used for manufacturing. Industrial robots are automated, programmable and capable of movement on two or more axes.

Here is a list of what industrial robots actually do —

  • Welding
  • Painting
  • Assembly
  • Pick and place for printed circuit boards
  • Packaging and labeling
  • Palletizing
  • Product inspection and testing

The listed tasks get accomplished with high endurance, speed and precision.

Those are key benefits in manufacturing processes. Industrial robots really help in materials handling. They can also undertake (albeit simplified) interfaces with actual workers and other robots.

Certain countries are widely regarded as industrial robotics leaders: the U.S., Germany, Japan and India, to name a few. Others are relative unknowns, but the United Arab Emirates (UAE) public-private initiatives and Taiwanese industry’s increasing automation make them robotics players worth examining.

Two Top Industrial Robotics Companies Worth Considering—

HLS Systems International (HOLI - Free Report) is a Zacks #1 Ranked company at the moment.

The annual EPS is around $2.20 a share in 2017 and $2.58 a share in 2018. At a $20.66 share price, that makes for a 12-month forward P/E ratio of 9.56.

This company has become one of the leading automation systems providers in the People's Republic of China, developing a number of core technologies and completing numerous projects utilizing a wide array of automation products.

With its philosophy of sincere concern for customers and its technical innovation capabilities, HLS Systems International specializes in the research, development, production, sale and distribution of industrial automation for digital railway signals and information systems, e-government, motor drive transmissions and safety controls for nuclear power reactors.

Fanuc Ltd. (FANUY - Free Report) ) is a manufacturer of factory automation and robots. It is engaged in the development, manufacture, sale and maintenance of robots and factory automation products primarily in Japan, the U.S., Europe and other Asian countries.

Annual EPS is around $0.58 a share.

The company's technology is applied in the automation of machine tools.

Its products lineup includes: computer numerical control series; servo motors; carbon dioxide laser oscillators; industrial lasers; robots and robot machines; machine for milling and boring, precision molding machines, wire-cut electric discharge machine and nano-control technology-based machines that have their applications in optical electronics, medical, semiconductor and biotechnology fields.

Fanuc Ltd. is headquartered in Yamanashi Prefecture, Japan.

A company marketing quote sums it up-- “FANUC America offers the most complete range of industry-leading products and services for robotics, CNC systems, and factory automation solutions. We are dedicated to increasing the competitiveness of North and South American manufacturers by creating opportunities to help them maximize their efficiency, reliability, quality, and profitability. Whether you're a small or a large manufacturer, we have a solution that will meet your specific needs. We invite you to explore the possibilities with FANUC America's automation solutions.”


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