Canadian investors may be starting to climb back on board the tech stock train. Yet instead of going to the biggest and best stocks, already up this year, robotics is another area to consider.
In fact, there are several robotics stocks that Canadian investors may want to dig into. Here are the top three to consider today.
Calian Group
Calian Group (TSX: CGY) is a cutting-edge robotics company that services the production and development of robotics across a wide-ranging field. From health to aerospace, Calian stock services each of these areas.
Calian stock has also continued to produce strong results in the last several quarters, including record results as well. Yet shares are down about 8% in the last year, providing perhaps a good opportunity for investors to jump in.
Yet Calian stock continues to be undervalued, in the opinions of analysts. That’s especially after a $62 million acquisition in recent months, with plenty of cash on hand to close the deal. This led to an increase in the target price, with the average at about $81. That would make today’s potential upside 31% as of writing.
Kraken Robotics
Kraken Robotics (TSXV: PNG) focuses on the sale of software-centric sensors and underwater robotic systems. Kraken stock continued its solid growth into the first quarter after achieving record results in 2022.
The company continues to bring in more business, with a recent $16-million order for its SeaPower batteries made just this week. Shares are up 49% in the last year, but down 10% year to date. Even so, analysts believe Kraken stock could indeed double in the next year.
The company continues to see a buy rating, as results beat out analyst estimates. Its cash flows remain strong, and more payments and partnerships will likely bring in even more. There are further near-term and long-term reasons to purchase the stock, including military opportunities.
Horizons Robotics and Automation Index ETF
For broader exposure, including international growth in robotics, the Horizons Robotics and Automation Index ETF (TSX: RBOT) is a solid option. The exchange-traded fund (ETF) holds a wide range of robotics companies, with not one company taking up more than 9% of its portfolio.
Shares of the ETF are up 12.7% in the last year, and 22.6% year to date. It is a new ETF, of course, but could certainly be a strong long-term hold for investors who want exposure to a wide range of robotics companies. Especially if they don’t want to have the burden of picking and choosing the best for themselves.
Bottom line
It might not feel like it now, but a bull market is coming. The market is down, and could indeed drop further this summer. That being said, long-term growth could receive a huge bump by the end of 2023, especially for growth stocks like these that could get the attention of investors during the next bull market.
So if you believe that robotics are the future of investment opportunities, then these are certainly the three I would consider. And consider doing so before the market turns around for good.
