Best Automation Stocks

A multiyear bull market in the technology sector could become more apparent in automation stocks. By some estimates, the tech sector as a whole is the second priciest sector in the market, even as stocks under $20 appear to be on the climb, including Mayville Engineering Co. Inc. (NYSE: MEC). Buying stocks can be relatively inexpensive, and automation stocks in Benzinga’s list of the Best Stocks under $10 include companies like Akoustis Technologies Inc. (NASDAQ: AKTS), which provides radio frequency (RF) filter solutions for the wireless industry. In 2022, the automation sector will help businesses across the globe automate enterprise processes to boost efficiency and maximize customer satisfaction.

Quick Look at the Best Automation Stocks:

• Teredyne, Inc.
• Amkor Technology, Inc.
• iRobot Corp.
• Rockwell Automation
• Alteryx, Inc.

Automation Stocks to Watch Out for This Year

When you think of automation, you think of robots in a factory or software that can automate complex processes such as data processes. Below, Benzinga provides a list of top automation stocks to watch for 2022.

Teradyne Inc. (NASDAQ: TER)

Teradyne Inc. (NASDAQ: TER) was founded by Alex d'Arbeloff and Nick DeWolf in the late 1940s, reaching a revenue of $3.1 billion in 2020. Teradyne provides automated testing equipment for semiconductors and system testing for hard disk drives, circuit boards and electronics systems. The firm entered the automation market in 2015, where it sells collaborative and autonomous robots for factory applications. Teradyne supplies several end-markets where it serves vertically integrated, fabless and foundry chipmakers with its equipment. 

Amkor Technology Inc. (NASDAQ: AMKR)

Amkor Technology Inc. (NASDAQ: AMKR) is a provider of outsourced semiconductor packaging and test services to device manufacturers, fabless semiconductor companies and contract foundries. The firm's products are divided into advanced products and testing services including wire bond packaging and testing. Over one-third of the firm’s revenues are generated from the U.S., followed by China, Ireland, Japan, Malaysia, Taiwan, Singapore and other countries across the world.

iRobot Corp. (NASDAQ: IRBT) 

iRobot Corp. (NASDAQ: IRBT)  is a U.S.-based company that designs and builds robots to assist consumers with a range of solutions to be carried out both inside and outside of the home. The company's consumer robot portfolio comprises solutions including cleaning, mapping and navigation, human-robot interaction and physical solutions. Retail businesses and online stores provide consumer robot products. The company’s primary revenues are derived from product sales, which are sold across the U.S. and the rest of the world. Citigroup Inc.  (NYSE: C) analyst Asiya Merchant maintains iRobot with a neutral rating and lowers the price target from $95 to $80. The company’s recent patent includes a transmitter for autonomous vehicles. 

Rockwell Automation (NYSE: ROK)

Rockwell Automation (NYSE: ROK) is a pure-play automation competitor that spun off from the Rockwell Collins avionics segment in 2001. The firm operates three segments from the year 2021, namely intelligent devices, software and control and lifecycle services. Intelligent devices contain drives, sensors and industrial components as well as software from the company. Meanwhile, other lifecycle services include consulting and maintaining services. It scores reasonably well from analysts at Top Banks like Oppenheimer and Deutsche Bank. (See full list on Benzinga.)

Alteryx Inc. (NYSE: AYX)

Alteryx Inc. (NYSE: AYX) provides self-service data analytics software. Its software platform enables organizations to dramatically improve business outcomes and the productivity of business analysts. The firm offers solutions such as advanced analytics, location intelligence, data preparation and technology integrations. It serves sectors including financial services, healthcare, retail, transportation and logistics, oil and gas, pharmaceuticals and biotechnology. The company generates its revenue from sales of its subscription-based software platform. 

Overview: Automation Stocks

Businesses across the globe are trying to automate enterprise with the help of companies such as Mercurity Fintech Holding Inc. (NASDAQ: MFH), which provides processes to boost efficiency and maximize customer satisfaction. Robotics and automation have simplified operations in manufacturing, healthcare and IT. Some companies collaborate with human workers and robotics in order to reduce laborious human tasks. For example, Ambarella Inc. (NASDAQ: AMBA) gained over 100% and was upgraded by Deutsche Bank (NYSE: DB) in December, while Novanta Inc. (NASDAQ: NOVT), Rockwell Automation and Teledyne Technologies Inc. (NYSE: TDY) were above 20% in 2021. 

How to Buy Automation Stocks

You may be thinking of investing in automation stocks, but what is the best way to buy them? First, you need a brokerage account, which you can set up in about 15 minutes. After adding money to the account, you are ready to invest in stocks. 

Research Automation Stocks Before You Buy

Be sure to research the automation stocks you wish to buy, examining a range of companies and key terminologies to better understand what is included in the automation sector and whether the companies that you choose meet your expectations. 

Decide How Many Shares to Buy

The number of shares you buy will be contingent on how much cash you currently have. Some tech stocks are expensive while others could be more affordable and range between $10 stock and $20 stocks. 

Best Online Brokers for Automation Stocks

Below, Benzinga provides a list of the best stockbrokers to purchase automation stocks.

Features to Look for in Automation Stock

• Robot Process Automation (RPA): For high-volume tasks, RPA can be used to create bots that automatically complete manual, repetitive tasks at a rate much faster than humans. Given a set of instructions, bots are capable of interacting with applications through their UIs, thus removing human controls in manual tasks. Without the need to re-key data or complete repetitive tasks, workers are free to focus on work of a higher value. 
• Automation of Workflows: Workflows are a set structure of business tasks. By using workflow automation, organizations can accelerate their processes while reducing miscommunications and enhancing productivity. Modernizing workflows with automation allows workers to automate unnecessary administrative tasks and remove process bottlenecks. Automation is an important factor of the modern-day economy and is worth considering as you evaluate how these companies help businesses and entrepreneurs. 
• Earnings per Share (EPS): Earnings per share is a widely followed performance measure that portrays a company’s financial health. This figure describes the portion of a public company’s profit that is allocated to each outstanding share of its stock, calculated quarterly or annually. EPS is arrived at by taking a company’s annual or quarterly net income and dividing by the shares outstanding (the company’s stock currently held by the shareholders). 

Pros and Cons of Automation Stocks

Advantages commonly attributed to automation include higher production rates and increased productivity, more efficient use of materials, better product quality, improved safety, shorter workweeks for labor and reduced factory lead times. Amazon.com, Inc. (NASDAQ: AMZN) has been leading the way in the adoption of automation since 2012 when it purchased a robotics company called Kiva Systems. Today, Amazon has more than 200,000 robots working in its warehouses alongside humans. 

The Fourth Industrial Revolution is not just a fad. The cost of initial investment can be expensive, but the strong trend will only accelerate.

Are Automation Stocks a Good Investment Right now?

COVID-19 caused a rethink of work processes across the world, incentivizing automation and streamlining value chains to reduce cost and human interaction where possible. In their 2022 outlook, RBC Capital Markets strategists posit that valuations still look expensive relative to the S&P 500. They find that ech ranks the best among all sectors on quality metrics, ranking at or near the top of most metrics. 

According to a PwC report, these technologies can contribute up to $15 trillion to the global economy by the year 2030. The industrial automation market can reach from $151.8 billion in 2020 to $229.3 billion in 2025 at a CAGR of 8.6%, and the best automation stocks for 2021 are set to reap these benefits.

Biggest Stock Movers of the Day

You can find the biggest automation movers of the day in the list below. 

Automation Stocks Are a Bright Spot for Investors

The world has always innovated, but the COVID-19 pandemic increased the pace of automation across hardware and software solutions. The changing nature of the workplace, greater competition and more accessible technologies provide a unique opportunity for automation stocks in 2022. 

Frequently Asked Questions