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.