The robotics and drone solutions industry is growing rapidly. And it’s expected to hit $200 billion by 2021.
That means savvy investors have a chance to cash in on robotics stocks. But knowing how to invest in robotics stocks isn’t always easy.
We’re here to help. We’ve laid out the ins and outs of the robotics industry and the top reasons stocks are a smart buy. Read on for a guide to investing in this growing industry.
How to Invest in Robotics Stocks
With a boom in expected growth, robotics stocks could bring in big returns. But there are several options for robotics investment. Here are a few of the top choices out there:
Robotics Penny Stocks
Penny stocks are stocks that usually trade for less than $5 per share. And they tend to start off outside major markets.
These inexpensive stocks often belong to companies that are starting out. Since they aren’t well-established yet, they can be more risky than other stocks. But they also have a chance for big returns if the stock is bought out or catches on.
Established Robotics Stocks
These are companies that already have a good foothold in major markets. When picking out solid robotics stocks, it’s smart to look at assets and the company’s balance sheets.
These are a good option for anyone wanting to own stock in a company or make longer-term investments. And there are online resources that highlight the best robotics stocks to own out there.
Investors who want to invest in the entire robotics sector, instead of one single company, are wise to consider ETFs.
These robotics ETFs measure a whole group of robotics stocks. Robo Global Robotics & Automation ETF and Global X Robotics & Artificial Intelligence ETF are two options.
Technology Driving the Future of Robotics
Wondering what technology is driving robotics growth? Here are some areas that are propelling the sector:
More and more, robotics is entering the medical space. One hot new technology includes surgical robots for technical procedures like surgery.
This technology focuses on precision and is poised to cut down human error. It also has the potential to lower the costs and stress of medical specialists.
Engineering and Construction
Robotics is opening up new doors in engineering and construction. Wearable technology like exoskeletons is making worksites safer. And precise drones are able to capture images in a fraction of the time it would take a surveying crew.
And free-moving robotic arms are letting home-makers incorporate new designs in construction projects.
As robotics do more and more, the demand for these machines is expected to jump. And that means companies that build robots can benefit.
Leading companies are focusing on artificial intelligence, navigation systems, and smart home innovations.
More in Investing
This overview of robotics stocks should shed light on this booming industry. But we have much more in the world of investing.
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