3 stocks of automation to buy right now
The increasing adoption of artificial intelligence, the advent of 5G wireless technology, and intelligent instruments are driving the prospects of the automation market.
The need to reduce human error and improve speed is a major contributor to the growth of the automation market. As a result, the global industrial automation market is expected to reach $ 212.41 billion by 2027. Registration of a CAGR of 6.7%.
Organizations have increased their automation budget to improve efficiency, reduce costs, and reduce staffing requirements. This should be for fundamentally strong automation stocks like Intuitive Surgical, Inc. (ISRG), John Bean Technologies Corporation (JBT) and Materion Corporation (MTRN).
Intuitive Surgical, Inc. (ISRG)
ISRG develops, produces and markets robotic products to improve the clinical outcomes of patients through minimally invasive surgery, in particular with the da Vinci Surgical System. The company’s endoluminal ion system enables the biopsy of small and hard-to-reach nodules.
This month ISRG appointed Yong-Bum Choi as General Manager for South Korea, a major market for minimally invasive treatments. The company anticipates that Choi will use his healthcare experience to lead the business strategy and operations that will help the company strengthen its position in the hospitals, surgeons and healthcare market in South Korea.
ISRG’s total revenue increased 71.8% year over year to $ 1.46 billion for the second quarter ended June 30, 2021 Gross income rose 103.6% year over year to $ 1.02 billion. Operating income increased 534.2% to $ 511.2 million from the year-ago quarter. In addition, the company’s net income rose 645% year over year to $ 523 million.
Analysts expect ISRG revenue of $ 5.64 billion in fiscal 2021, a year-over-year growth of 29.5%. The company has an impressive track record with surprises; it outperformed consensus EPS estimates for each of the past four quarters. Earnings per share are expected to increase by 44.1% in the current year. In addition, the share gained 21.9% over the past nine months and 40.1% over the past year.
The ISRG’s strong fundamentals are reflected in theirs POWR ratings. The stock has an overall rating of B, which equates to a buy in our proprietary rating system. The POWR ratings rate stocks based on 118 different factors, each with their weighting.
The share also has a B rating for sentiment, quality and growth. We also rated ISRG for stability, value and momentum. Click here Access to all ratings of the ISRG.
ISRG is in 53rd place out of 178 shares in the Medicine – Devices & Equipment Industry.
John Bean Technologies Corporation (JBT)
JBT provides technology solutions for the food and beverage industry. It also provides equipment and services for the aviation industry. The company operates through JBT FoodTech; JBT AeroTech; and Automated Systems Segments. In addition, it offers driverless transport systems for the transport of materials in production halls and warehouses.
In June, JBT acquired Prevenio, a food safety solutions provider, for $ 170 million. JBT’s recurring revenue portfolio should intensify, and this acquisition could enable the company to continue investing in solutions that support customers’ day-to-day operations. In addition, Prevenio aimed to expand JBT’s equipmentless offering while helping customers protect themselves from pathogen threats.
For the second quarter ended June 30, 2021, JBT’s revenue grew 15.6% year over year to $ 475.5 million. The company’s gross profit increased 15.1% year over year to $ 149.9 million. Net income for the quarter was $ 30.5 million. Additionally, the company’s cash and cash equivalents increased 325.9% from $ 47.5 million as of December 31, 2020 to $ 202.3 million as of June 30, 2021.
JBT’s revenue is expected to grow 12% year over year to $ 1.93 billion in fiscal 2021. it outperformed consensus EPS estimates in each of the final four quarters. The EPS is expected to increase by 21.8% in the current year. The stock gained 34% over the past nine months and 64.6% over the past year.
JBT’s POWR ratings reflect this promising outlook. The stock has an overall rating of B, which equates to a buy in our proprietary rating system. The share also has a B rating for growth and quality.
In addition to the POWR ratings just highlighted, one can see JBT’s ratings for stability, momentum, value and sentiment Here. The share ranks 33rd out of 82 shares with an A rating Industrial machines Industry.
Materion Corporation (MTRN)
Established in 1931, MTRN is an advanced materials supplier that keeps electrical connectors connected. The company’s optical alloys and plated metals are used in a car’s car navigation system. MTRN also operates through Performance Alloys and Composites; Advanced materials; and precision optics segments.
This month MTRN acquired an electronic materials company, HC Starck Solutions. This strategic and transformative acquisition should strengthen MTRN’s position in the semiconductor industry, drive market growth, increase margins and help achieve consistent double-digit EPS growth.
MTRN’s net sales increased 36.7% year over year to $ 371 million for the second quarter ended July 2, 2021. The company’s gross margin increased 48.2 percent year over year to $ 69.58 million. Operating profit increased 173.7% from the year-ago quarter to $ 20.72 million. Additionally, the company’s net income rose 207.9% year over year to $ 17.87 million.
For the fiscal year 2021, analysts expect MTRN sales of 1.48 billion US dollars, which corresponds to a growth of 25.6% over the previous year. The company has an impressive track record with surprises; it outperformed consensus EPS estimates for each of the past four quarters. In addition, the EPS is expected to increase by 66.5% in the current year. MTRN’s share price is up 8.2% over the past nine months and 31.9% over the past year.
It’s no surprise that MTRN has an overall rating of B, which equates to a purchase on our POWR rating system. The stock also has a B rating for growth, value and sentiment.
Click here to view the additional POWR ratings for MTRN (Momentum, Stability and Quality). MTRN ranks 9th out of 36 stocks in the Industry – metals Industry.
ISRG shares traded at $ 992.38 per share on Friday afternoon, down $ 1.77 (-0.18%). Since the beginning of the year, ISRG has gained 21.30%, compared to an increase in the reference index S&P 500 of 16.64% over the same period.
About the author: Priyanka Mandal
Priyanka is a passionate investment analyst and financial journalist. To do a master’s degree in economics, Her interest in the financial markets motivated her to start her career in investment research. More…