While the global industrial automation market is poised for a CAGR of 8.3% between 2024 and 2031, according to SkyQuest, it bears winnowing out the particulars of the market, including identifying robotics stocks to sell. With signals pointing to global economic slowdown and the reduction in capital expenditures, robotics investments may also suffer.
Likewise, some robotics stocks are more vulnerable to plateauing, while others could rise from present weakness.
Covering these scenarios, here are three strong candidates for robotics stocks to sell.
Dynatrace (DT)
One of key aspects of robotics and automation is ensuring their operations work as intended. Software performance is the broader niche for Dynatrace (NYSE:DT), offering application performance management (APM) and cloud-native monitoring. The latter is especially prevalent in automation processes as they rely on cloud or edge computing for processing power.
In this role, Dynatrace licenses DEM (Digital Experience Management), Host-Based Licensing (HU) and DPS (Data Platform Subscription). In January, the company announced Data Observability that combines data science, analytics and its proprietary Davis hypermodal AI engine to remove false positives and other errors.
However, with a market share of 3% in the APM market, Dynatrace faces tough competition from the likes of Microsoft (NASDAQ:MSFT) Azure, Amazon (NASDAQ:AMZN)API Gateway, Google Cloud, IBM (NYSE:IBM) and Cisco (NASDAQ:CSCO) AppDynamics.
As such, Dynatrace is vulnerable to Big Tech moves, making it one of the robotics stocks to sell, evidenced when it had to discontinue support for the Chrome and MS Edge browser extension in January.
Moreover, the company’s resources appear to be heavily involved with gender-politics. Given the highly competitive APM market, this is not a positive signal. Although the company’s revenue increased 19% year-over-year in Q2 2024, Dynatrace net income effectively flatlined at 1.1% increase.
Dynatrace entered the profitability zone in Q1 2020, typically exhibiting long periods of stagnation and fluctuation. Presently, DT stock appears to be on the upper end of the cycle with shares priced at $47 against the 52-week average of $48.56, having gone up by 1.82% in the last three months.
PROCEPT Biorobotics (PRCT)
California-based PROCEPT Biorobotics (NASDAQ:PRCT) made a name for itself with the flagship AquaBeam Robotic System. The real-time imaging surgical robot uses waterjet technology to treat prostatic hyperplasia (BPH), otherwise known as benign prostate enlargement.
BPH is relatively common, affecting up to 90% of men older than 80, according to the NIH. However, data from the American Urological Association shows that BPH is treated mostly through medication with surgery not required for most men. Although the company’s innovative aquablation (waterjet) therapy allows for tissue removal without thermal (laser) injury, it still involves invasive treatment.
In Q2 2024 earnings, the company reported 47 sales of AquaBeam Robotic System, generating $53.4 million revenue. Despite making for a 61% annual growth, PROCEPT Biorobotics is yet to show signs of entering profitability zone sustainably.
Without a single profitable quarter, the company reported $25.6 million net loss, slightly greater than the $25.3 million net loss in the year-ago quarter. Priced at $63.33 against the 52-week average of $47.28, PRCT stock makes for a solid candidate for robotics stocks to sell.
Zebra Technologies (ZBRA)
Zebra Technologies (NASDAQ:ZBRA) is an established company connecting employees with assets across diversified sectors such as logistics, healthcare, hospitality, banking, government orgs, retail and warehouse automation.
In August 2021, Zebra made a big move in warehouse automation by acquiring Fetch Robotics worth $290 million. With a lineup of different autonomous mobile robots (AMRs), the company matched Fetch robots with its existing automation solutions FulfillmentEdge and SmartSight.
However, Zebra competitor Symbotic (NASDAQ:SYM) may be a better exposure at the moment.
Using machine vision, the company’s robotic systems range from fixed (de-)palletizing ones to autonomous mobile robots. On top of that, Symbotic has an AI-powered software with which to optimize the operations of robotic fleets.
This end-to-end tech also found its way into major retail chains such as Walmart (NYSE:WMT), Target (NYSE:TGT), C&S Wholesale Grocers and Albertsons (NYSE:ACI). Although Symbotic is yet to become profitable since going public two years ago, in the last Q3 2024 earnings ending July 29th, the company reported $14 million net loss vs the net loss of $39 million in the year-ago quarter
Moreover, Symbotic acquired Veo Robotics in August for $8.7 million for its FreeMove tech used in human-robot collaboration. More established ZBRA stock is up nearly 20% year-to-date at pricier $320 per share.
SYM stock is down 57% to $21.23, nearly cut in half from its 52-week average of $40.64 and close to its 52-week low of $20.90 per share. This provides a high growth opportunity as heavier ZBRA is less agile than SYM, with its average price target of $44.9 per Nasdaq forecasting data.
On the date of publication, Shane Neagle did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.