Robotics and automation go hand in hand. Inflationary pressures have been plaguing both consumers and business owners. This has lead to there now being several robotics stocks to sell. Over the last several years, not only did prices increase in certain commodities, but the U.S. labor market has also experienced high relative wage gains, particularly in the services sector. One way to businesses have chosen to protect themselves from inflation has been to embrace automation. The advent of advanced artificial intelligence technologies will also make robotics more useful and ubiquitous.
Investors who desire to make long-term bets on companies innovating with novel technologies have already been exploring robotics stocks. However, there are definitely some stocks in the robotics space to avoid. Below are three robotics stocks to sell.
iRobot (IRBT)
iRobot (NASDAQ:IRBT) is a robotics company that focuses on delivering products to consumers. The firm’s most notable product has been the Roomba vacuum, which made its debut way back in 2002. Since then, iRobot has been steadily developing and releasing a number of smart-home robotics devices to help consumers better maintain their homes. Despite experiencing years of solid double-digit growth prior to the global COVID-19 pandemic, iRobot has experienced its sales growth seriously contract in recent years.
Both fiscal years 2022 and 2023 saw iRobot’s revenue declin by more than 24% on a year-over-year basis. In fact, last year marked the first year since 2017 that iRobot’s annual revenue slipped under $1 billion. Declining consumer confidence and the high costs of novel technologies have largely disincentivized consumers from purchasing any new tech products. Moreover, the drop in iRobot’s growth has been so bad that the company announced a restructuring plan in January 2024 that included many operational costs cutting as well as CEO and Board Chairman Colin Angle stepping down after 33 years at the helm of iRobot.
Until consumer confidence reawakens, iRobot is going to remain one of the robotics stocks to sell.
Rockwell Automation (ROK)
Rockwell Automation (NYSE:ROK) is an automation behemoth. The company works to drive efficiencies in a multitude of sub-verticals across the industrial sector through its three business segments: intelligent devices, software & control and lifecycle services. The intelligent devices business unit sells a number of industrial components and sensor products to increase safety.
The company’s diverse range of customers has not shielded it from all macroeconomic turmoil. In their first quarter earnings call for the Rockwell’s fiscal year 2024, CEO Blake Moret noted discrete, automotive sales declined in the “high single digits,” which appears to be due to the headwinds facing the electric vehicle (EV) market. Rockwell also experienced sales declines in its e-commerce and warehousing end-market due to delayed modernization projects at logistics centers as consumer demand for goods remains low. These negative trends largely continued in the company’s second quarter fiscal year 2024 report.
Rockwell shares have declined 11.1% thus far this year as of the end of last Friday’s trading session. If market volatility swings in the other direction, ROK stock can slip even further.
Azenta (AZTA)
The final entry on this list of robotics stocks to sell is Azenta (NASDAQ:AZTA), a life sciences firm. The company develops sample exploration and management tools and solutions for laboratories. Azenta’s automated technologies are also worth noting. The company has worked to develop automated sample storage systems, which “not only ensure the integrity of [lab] samples but also improve inventory accuracy through meticulous documentation and digital audit trails.” Coupled with these tools, laboratory specialists can also help themselves to Azenta’s automated sample handling tools. These not only improve efficiency at laboratories but also increase laboratory throughput.
Unfortunately, similar to the other entries on the list, the macroeconomic environment has also been harsh on Azenta’s sales growth. Azenta’s Q1 2024 earnings reported, ended in December, saw revenue decline 13% YOY, while the firm’s second quarter earnings report only saw sales climb 7% YOY. For a company that is largely loss making, feeble revenue growth is something investors should definitely avoid. Shareholders are betting on companies like Azenta to reach breakeven as a soon as possible. However, it seems it will take Azenta some time.
On the date of publication, Tyrik Torres did not have (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.