The need for increased productivity and efficiency, coupled with technological advances, has created broad-based demand for robotics. For instance, in the healthcare sector, the need to adopt less invasive and more precise ways to treat patients is expected to further heighten the sector’s demand for robotic technologies. As such, we think the recent price dip in robotics stocks Intuitive Surgical (NASDAQ:ISRG), Boston Scientific (BSX), and Integra LifeSciences (IART) provides a perfect opportunity to bet on them because they have the potential to generate significant returns in the near term. So, let’s pore over these names.According to a McKinsey Global Institute report, by 2030, one-third of American jobs could become automated because a technology-driven world will continue to substitute human work activities with robots and AI (artificial intelligence)-powered technologies. The COVID-19 pandemic has resulted in unexpected innovations in automation, with the rapid deployment of robotic technology in the healthcare system. Because the healthcare sector plans to be ready if/when the next pandemic hits, its demand for robot-assisted healthcare technologies should accelerate.
The global healthcare robotics market is expected to grow at a 21.5% CAGR over the next five years to hit approximately $11 billion by 2026. Many hospitals worldwide are currently using robots to support both staff and patients. The growing need for automation and rapid technological advancements to cure patients should further drive the industry’s growth.
Against this backdrop, we think one should consider buying the dip in Intuitive Surgical, Inc. (ISRG), Boston Scientific Corporation (NYSE:BSX), and Integra LifeSciences Holdings Corporation (IART). These robotics companies are well positioned to see sustained demand for their products.