3 Robotics Stocks to Sell in August Before They Crash and Burn

While the global industrial automation market is poised for a CAGR of 8.3% between 2024 and 2031, according to data SkyQuestinvolves highlighting market details, including identifying robotics stocks to sell. With signals pointing to a slowing global economy and reduced capital spending, investment in robotics could also suffer.

Also, some robotics stocks are more vulnerable to plateauing, while others could rally from current weakness.

Covering these scenarios, here are three strong candidates for selling robotics stocks.

Dynatrace (DT)

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One of the key aspects of robotics and automation is ensuring that their operations work as intended. Software performance is the broader niche for Dynatrace (NYSE:DT), providing application performance management (APM) and cloud-native monitoring. The latter is particularly prevalent in automation processes, as it relies on cloud or edge computing for processing power.

In this role, Dynatrace grants licenses DEM (Digital Experience Management), Host-Based Licensing (HU) and DPS (Subscription to the data platform). In January, the company announced Data Observability that combines data science, analytics and its proprietary Davis hypermodal you engine to eliminate false positives and other errors.

However, with a 3% market share in the APM market, Dynatrace faces stiff competition from companies such as Microsoft (NASDAQ:MSFT) Azure, Amazon (NASDAQ:AMZN) Gateway API, Google Cloud, IBM (NYSE:IBM) and Cisco (NASDAQ:CSCO) AppDynamics.

As such, Dynatrace is vulnerable to Big Tech moves, making it one of the robo stocks to sell, highlighted when it had to end support for the Chrome and MS Edge browser extension in January.

Moreover, the company’s resources seem to be heavily involved in gender politics. Given the highly competitive APM market, this is not a positive sign. Although the company’s revenue grew 19% year over year in Q2 2024, Dynatrace’s net income actually fell to 1.1% growth.

Dynatrace entered profitability in Q1 2020, typically experiencing long periods of stagnation and fluctuation. Currently, DT shares appear to be at the upper end of the cycle, with shares priced at $47 versus the 52-week moving average of $48.56, which has risen 1.82% over the past three months.

PROCEPT Biorobotics (PRCT)

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based in California PROJECT Biorobotics (NASDAQ:PRCT) made a name for themselves with the AquaBeam robotic system. Real-time imaging surgical robot uses water jet technology to treat prostate hyperplasia (BPH), otherwise known as benign prostate enlargement.

BPH is relatively common, affecting up to 90% of men over the age of 80, according to NIH. However, the data from American Urological Association shows that BPH is mostly treated with medication, with surgery unnecessary for most men. Although the company’s innovative aquabation (water jet) therapy allows tissue removal without thermal (laser) damage, it still involves an invasive treatment.

In Q2 2024 earnings, the company reported 47 sales of the AquaBeam Robotic System, generating $53.4 million in revenue. Despite experiencing 61% year-over-year growth, PROCEPT Biorobotics has yet to show signs of sustainably breaking into profitability.

Without a single profitable quarter, the company reported a net loss of $25.6 million, slightly higher than the $25.3 million net loss in the year-ago quarter. With a price of $63.33 versus a 52-week moving average of $47.28, PRCT shares are a solid candidate to sell robotics stocks.

Zebra Technologies (ZBRA)

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Zebra Technologies (NASDAQ:ZBRA) is an established company that connects employees with assets in diverse sectors such as logistics, healthcare, hospitality, banking, government organizations, retail and warehouse automation.

In August 2021, Zebra made a big move in warehouse automation through acquisition Take on Robotics worth 290 million dollars. With a range of autonomous mobile robots (AMRs), the company has combined Fetch robots with its existing automation solutions FulfillmentEdge and SmartSight.

However, competitor Zebra Symbolic (NASDAQ:SYM) may be a better exposure at this time.

Using artificial vision, the company’s robotic systems range from fixed (de)palletizing to autonomous mobile robots. In addition, Symbotic has AI-based software to optimize robotic fleet operations.

This end-to-end technology has also found its way into major retail chains such as Walmart (NYSE:WMT), Aim (NYSE:TGT), C&S wholesalers and Albertsons (NYSE:needles). Although Symbotic has yet to become profitable since going public two years ago, in the latest third quarter 2024, which ended July 29, the company reported a net loss of $14 million, compared to a net loss of $39 million USD in the previous year’s quarter.

Furthermore, Symbotic has acquired Veo Robotics in August for $8.7 million for its FreeMove technology used in human-robot collaboration. The more established ZBRA shares are up nearly 20% year to date at $320 per share.

SYM shares fell 57% to $21.23, nearly halved from its 52-week moving average of $40.64 and near its 52-week low of $20.90 a share. This provides a large upside opportunity as the heavier ZBRA is less agile than SYM with its average price target of $44.9 per Nasdaq forecast data.

At the time of publication, Shane Neagle did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

At the time of publication, the responsible editor had (neither directly nor
indirectly) any positions in the securities mentioned in this article.