Why Now's the Time to Buy iRobot

In today's video, I look at iRobot (Nasdaq: IRBT  ) and explain why I'm giving the stock a outperform rating on my profile in Motley Fool CAPS. iRobot is best known for its consumer-facing products like its floor-vacuuming Roomba. But the company also specializes in tactical automatons for use in war zones. Sounds cool. Unfortunately, the stock has been hammered lately on investor fears that government budget cuts may have hurt iRobots' ability to generate revenue. However, I think the dip in share price creates an opportunity for patient investors to buy a great company for less.

Robots are increasingly being used across a variety of industries, and iRobot is well-positioned to gain from this trend. Amazon (Nasdaq: AMZN  ) dished out $775 million earlier this year to buy robot maker Kiva Systems. The Kiva warehouse automatons help Amazon fill shipment orders faster. Robotics are transforming the way the world runs, and iRobot's expertise in this area puts it at the forefront of this change.

It isn't always easy to know which stocks will outperform and which will fizzle. Luckily, some of The Motley Fool's brightest analysts have done the hard work for you. Click here for instant access to this free report, titled The Stocks Only The Smartest Investors Are Buying. The report reveals why even Warren Buffett is interested in these stocks, and how you can make money from them.

Fool contributor Tamara Rutter owns shares of Amazon. Follow her on Twitter using the handle: @TamaraRutter for weekly stock picks and other Foolish insights. The Motley Fool owns shares of Motley Fool newsletter services have recommended buying shares of iRobot and The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (1) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 12, 2012, at 1:08 PM, getrealmd wrote:

    A Romney win could also be good for IRBT. He's more apt to want to automate the military and IRBT is a MA company if I'm not mistaken. MIT- the university, not the candidate- has some skin there too.

    In either case, at some point the decision makers are going to find it makes more sense to invest in advanced tech than boots on the ground and IRBT will be there- or maybe they will be nested within a much bigger contractor that buys us out at a big number......

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1902236, ~/Articles/ArticleHandler.aspx, 10/24/2016 8:36:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
IRBT $44.64 Down +0.00 +0.00%
iRobot CAPS Rating: *****
AMZN $818.99 Down +0.00 +0.00% CAPS Rating: ****