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The Zacks Analyst Blog Highlights: NVIDIA, Alphabet, Teradyne, iRobot and Amazon

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For Immediate Release

Chicago, IL – December 20, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA (NVDA - Free Report) , Alphabet (GOOGL - Free Report) , Teradyne (TER - Free Report) , ABB , iRobot (IRBT - Free Report) and Amazon (AMZN - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

Robotics Space Holds Promise in 2020: Stocks Under Spotlight

The data-oriented and fast-paced nature of the world has led to robotics technology gaining traction across major sectors including industrial, automotive, electronics, healthcare, retail and food & beverages.

Rapid advancement in robotics technology is driving automation that increases efficiency and ease of any work, thus saving both time and human labor in the process. Further, growing integration of AI and ML with machines has made robotics technology extremely dynamic and innovative.

We believe robotics as a field holds immense potential for the robot makers in 2020, courtesy of continuous advancement in AI and improvements machine vision and sensors. Moreover, increasing usage of robots is likely to revolutionize the production sites, automobile and electronics manufacturing, retail stores, hospitals, office areas, distribution operations and homes.

Per a report from Mordor Intelligence, global robotics market is expected to see a CAGR of 25% between 2019 and 2025. Moreover, according to IMARC Group data, the market is anticipated to hit a volume of 26 million units by 2024.

Further, emergence of collaborative robots (cobots), which are known for interacting with humans in the work space, is making this market more lucrative. A MarketsandMarkets report shows that global market for cobots is expected to hit $12.3 billion by 2025, witnessing a CAGR of 50.31% between 2018 and 2025.

Bullish Installation & Spending Projections

Growing robot installations and rising spending in robotics are major positives.

According to the World Robotics report, the number of installed industrial robots for 2019 is estimated at 421,000 units worldwide. For 2020, the figure is about to increase 10% to 465,000 units. For the 2022, the installation base is projected at 584,000 units.

Further, an IDC report indicates that spending in robotics is expected to hit $210.3 billion by 2022, witnessing a CAGR of 20.2%. Additionally, software and hardware spending in the technology is likely to see a CAGR of 21.7% and 18.2%, respectively.

Additionally, Statista projects spending on robotics categories in 2020, Industrial, Commercial, Military and Personal, at $16.4 billion, $10.8 billion, $11.21 billion and $4.5 billion, respectively.

Given this upbeat scenario, not only are robotics companies globally ramping up efforts to innovate their robots but also tech companies are coming up with advanced techniques and tools to bring further advancement in the robotics system.

NVIDIA & Google Supporting Robotics

NVIDIA is riding on its solid line of GPU that acts as the back bone of robotics technology. The company has introduced a software-defined platform called NVIDIA DRIVE AGX Orin for robots and autonomous vehicles.

Notably, the platform is comprised of Orin that is a system-on-a-chip is based on the company’s next-generation GPU architecture and Arm Hercules CPU cores.

Apart from this, NVIDIA which carries a Zacks Rank #2 (Buy) opened its first full-blown AI robotics research lab late last year. The lab focuses on research work related to next-generation collaborative robots.

Meanwhile, Alphabet’s Google division revamped robotics initiatives in the beginning of this year. The operation called Robotics at Google focuses on leveraging its advanced ML techniques to train robots on how to grasp objects, how to interact with humans and navigate across different environments.

Notably, Google’s parent Alphabet carries a Zacks Rank #3 (Hold).

Robotics Stocks in Focus

Let’s delve deeper into core robotics stocks that are well-positioned to capitalize on the prospects present in the robotics space.

Teradyne, a leading provider of automated test equipment, made its foray into the robotics market with the acquisition of Universal Robots, which is best known for cobots that are cost-effective, safe, and flexible to deploy. Additionally, these cobots are currently operating in several production environments.

Further, Teradyne’s acquisitions of Energid Technologies and MiR are in line with its strategy. Moreover, these strategic acquisitions are paying an important role in shaping the company’s growth trajectory in the robotics space.

Teradyne carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ABBis a leading power and automation technology company. Its Robotics & Discrete Automation segment offers machine and factory automation solutions and a wide-ranging robotics solutions and applications suite.

Recently, the company commenced working on its new robotics manufacturing and research facility in China. The research facility is likely to open in 2021 and entails an overall investment of $150 million.

ABB has a Zacks Rank #2.

iRobotis one of the leading manufacturers of robots worldwide. The company’s offerings in the consumer sector includes highly advanced products — Roomba Vacuums, Braava Mops and Terra Mows. The company is also benefiting from strengthening global household adoption rates of its Roomba and Braava products.

Further, the company’s Root Robotics buyout is likely to enhance educational robot product offerings. Moreover, its Sales On Demand Corporation and Robopolis SAS buyouts are aiding the company in expanding international presence.

iRobot carries a Zacks Rank #3.

Amazon,which is a dominant player in the e-commerce space, is making every effort to reinforce retail capabilities with robotics. Its strengthening robotics arm, Amazon Robotics, and increasing number of its robotics buildings globally are tailwinds.

Further, the company’s acquisition of the robotic startup Canvas Technology is a major positive. We note that Canvas Technology is best known for its fully autonomous cart systems that are of great use in fulfillment centers as they aid in shifting goods around warehouses.

Further, Amazon’s buyout of robotics company Kiva Systems is a major positive. The acquisition aided Amazon in introducing two new kinds of robots for its fulfillment centers — Xanthus and Pegasus.

Amazon carries a Zacks Rank #3.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2020?

These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>

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