Rise of the Robots
If manufacturers are going to flourish in America, they’ll need to buy a lot more robots. Here are six ways to play this hot trend.
Jack Hough for Barron's: For long-term investors, robots could be one key to securing healthy corporate profit growth, and stock returns, even as wages rise. There are specific opportunities, too. Japan’s Fanuc (ticker: 6954.Japan) is far and away the U.S. market leader in industrial robots, and it’s quickly ramping up production. Its shares have been outperforming, and they could offer 20% more upside over the next year. Germany’s Kuka (KU2.Germany), which sold a majority stake last year to China’s appliance giant, Midea Group (000333.China), has similar return potential. Other stocks with high exposure to industrial robotics and factory automation include Rockwell Automation (ROK), Switzerland’s ABB(ABB), and Yaskawa Electric (6506.Japan). And for one-stop shoppers, there’s the Robo Global Robotics & Automation Index exchange-traded fund (ROBO), which tracks 85 stocks, charges annual expenses of 0.95%, and has returned 37% over the past year. Cont'd...
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