There’s an exciting development going on that’s not getting any attention. We’re referring to the development of robotic exoskeletons, a phenomenon that could literally change some people’s lives. This has also opened the door to the best robotic exoskeleton stocks.
For those unfamiliar, robotic exoskeletons are worn on the human body to provide mechanical movement assistance. The concept was conceived to make life more comfortable for paralyzed people. Though still in its early stages, exoskeleton development is taking the world by storm, with the industry predicted to grow at a compound annual rate of 32.2% through 2030.
Robotic exoskeleton stocks are great because they allow you to take advantage of thematic growth. What’s more, developing robotic exoskeletons is good-for-nothing territory because it funds a life-changing initiative. But because this industry is still in its infancy, growth traps exist. That’s why I’ve developed a robust screening methodology to help give readers a prudent idea.
So, without further ado, here are three robotic exoskeleton stocks worth considering.
Ekso Bionics Holdings (EKSO)
Image credit: Phonlamai Photo / Shutterstock.com
Founded in 2005, Ekso Bionics (NASDAQ:EKSO) is an exoskeleton technology company focused on enhancing natural abilities. The company aims to help paralyzed people get up and walk, increase work capacity and enable groundbreaking research.
Ekso Bionics is no longer a young company, but it is becoming more mature as its R&D pipeline matures. We added EKSO stock to this list because it is an industry leader with proven releases, not an unproven storyteller. Additionally, EKSO stock has lost nearly half of its market value since the beginning of the year, which could present an opportunity to “buy low.”
Additionally, Ekso Bionics has developed large partnerships that provide a revenue pipeline. For example, the company recently announced a research partnership with the Shepherd Center, adding to its existing partnership network. Additionally, the company reported first quarter revenue of $3.8 million in April, indicating that it has been successful in generating revenue from past partnerships.
Finally, key metrics suggest that EKSO stock is significantly undervalued. For example, Ekso Bionics’ enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA) ratio is just 0.46x.
Guys, I’m bullish!
Rework Robotics (LFWD)
Source: shutterstock.com/Allies Interactive
ReWalk Robotics (NASDAQ:LFWD) is a medical technology company focused on helping people with lower limb disabilities walk and improve mobility. The company has been around for over 20 years. But like Ekso Bionics, ReWalk Robotics has only recently come into the spotlight, so an early stage position in LFWD stock may be wise.
An analysis of ReWalk’s near-term performance provides a foundation for further analysis. The company had mixed results in the first quarter, missing revenue targets by $250,000 but beating earnings per share targets by 8 cents. However, the company expects sales to grow for the remainder of 2024, which is why it expects full-year revenue to be between $28 million and $32 million.
ReWalk will likely experience ups and downs over the next few years, but factors such as the company’s three-year compound annual growth rate (CAGR) of 53.52%, comprehensive product pipeline, and enterprise value-to-sales ratio of 0.75x suggest that LFWD stock is undervalued.
Myo-mo (MYO)
Source: Sara Holmlund/Shutterstock.com
Myomo (NYSE:MYO) is an intriguing company. The company is known for its MyoPro, a line of lightweight electronic arm braces targeted at people with stroke, brachial plexus injuries, cerebral palsy, and other neuromuscular injuries. Additionally, the company offers ancillary services, providing consumers with a convenient product integration experience.
Why did we decide to add Myomo to the list?
Like Ekso Bionics and ReWalk, Myomo is protected by a market with high barriers to entry. But the company’s singular focus on being the best in its niche in the exoskeleton industry is even more enthusiastic. Plus, Myomo has a proven track record. For example, the company recently released its first-quarter earnings report, revealing revenue of $3.75 million and a five-year CAGR of 45.86%.
With all that in mind, I believe MYO stock is a solid fundamental option. Of course, valuation is up for debate, as MYO stock trades at a high price-to-sales multiple of 8.11. That said, this seems more like a growth story than a value opportunity.
Although it’s a risky bet, I’m optimistic about the future of MYO stock.
On the date of publication, the editor in charge did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, Steve Booyens did not hold (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the author in accordance with InvestorPlace.com’s Publishing Guidelines.
Steve Booens co-founded Pearl Grey Equity and Research in 2020 and has been responsible for cross-asset research and public relations ever since. Prior to founding the firm, Steve worked in various finance roles in London and South Africa. He holds a Masters in Investment Banking from Queen Mary, University of London. Additionally, Steve will receive his CFA charter on April 26, 2024 and is working towards a PhD in Finance. His articles have appeared on various reputable web pages, including Seeking Alpha, TipRanks, Yahoo Finance, and Benzinga. Steve’s articles on InvestorPlace do not constitute financial advice. However, they form an interesting contrast between mainstream opinion and objective theory, and readers can benefit from unbiased commentary. Readers can expect coverage on frequently traded stocks, REITs, bond funds, CEFs, and ETFs.
