3 Automation Stocks to Buy Right Now

3 Automation Stocks to Buy Right Now

Posted On October 4, 2021 1:30 pm

The increasing adoption of artificial intelligence, the advent of 5G wireless technology, and smart instruments are propelling the automation market’s prospects.

The need to reduce human error and improve speed are contributing significantly to the growth of the automation market. Consequently, the global industrial automation market is expected to reach $212.41 billion by 2027, registering a CAGR of 6.7%.

Businesses have increased their budget for automation to improve efficiency, decrease costs and reduce the need for human workers. This should bode well for fundamentally strong automation stocks like Intuitive Surgical, Inc. (ISRG – Get Rating), John Bean Technologies Corporation (JBT – Get Rating), and Materion Corporation (MTRN – Get Rating).

Intuitive Surgical, Inc. (ISRG – Get Rating)

ISRG develops, manufactures, and markets robotic products designed to improve patient’s clinical outcomes through minimally invasive surgery, most notably with the da Vinci Surgical System. The company’s Ion endoluminal system enables the biopsy of small and hard-to-reach nodules.

This month, ISRG appointed Yong-Bum Choi as the General Manager for South Korea, a prime market for minimally invasive care. The company believes that Choi, with his experience in healthcare, will direct the business strategy and operations that will help the company strengthen its position with South Korea’s hospitals, surgeons, and healthcare market.

ISRG’s total revenue increased 71.8% year-over-year to $1.46 billion in the second quarter ended June 30, 2021. The company’s gross profit grew 103.6% from the year-ago value to $1.02 billion. Its income from operations rose 534.2% from the prior-year quarter to $511.2 million. Also, the company’s net income increased 645% year-over-year to $523 million.

Analysts expect ISRG’s revenue for the fiscal year 2021 to be $5.64 billion, representing a 29.5% growth year-over-year. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. Its EPS is expected to grow 44.1% in the current year. Moreover, the stock has gained 21.9% over the past nine months and 40.1% over the past year.

ISRG’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its theweighting.

Also, the stock has a B grade for Sentiment, Quality, and Growth. We’ve also graded ISRG for Stability, Value, and Momentum. Click here to access all of ISRG’s ratings.

ISRG is ranked #53 of 178 stocks in the Medical – Devices & Equipment industry.

John Bean Technologies Corporation (JBT – Get Rating)

JBT provides technology solutions to the food and beverage industry. It also provides equipment and services to the air transportation industry. The company operates through JBT FoodTech; JBT AeroTech; and Automated Systems segments. Additionally, it offers automated guided vehicle systems for material movement in manufacturing and warehouse facilities.

In June, JBT acquired a provider of food safety solutions, Prevenio, for…

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