An exciting, under-the-radar development is unfolding. I’m referring to the development of Robotic Exoskeletons, a phenomenon that could literally be life-changing to some. This has also opened the door to the best Robotic Exoskeleton stocks.
For those unaware, Robotic Exoskeletons attach to the human body to aid mechanical movement. Among other reasons, the concept was designed to provide paralyzed individuals with a more convenient life. Although in its early stages, exoskeleton development has taken the world by storm, providing the industry with a forecasted annual growth rate of 32.2% until 2030.
Robotic Exoskeleton stocks are great because they tap into thematic growth. Moreover, Robotic Exoskeleton development is a do-good space as it funds life-changing initiatives. Nevertheless, the industry’s early nature means growth traps exist. As such, I developed a robust screening methodology to ensure I provide my readers with prudent ideas.
Without further ado, here are three Robotic Exoskeleton stocks worth considering.
Ekso Bionics Holdings (EKSO)
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Established in 2005, Ekso Bionics (NASDAQ:EKSO) is an exoskeleton technology company that aims to enhance natural abilities. The firm seeks to help individuals with paralysis stand up and walk, enhance worker capabilities, and deliver groundbreaking research.
Although no longer a young company, Ekso Bionics is coming of age as its research and development pipeline has matured. I added EKSO stock to this list as it is an industry leader with proven releases instead of an unproven storyteller. Moreover, EKSO stock has shed nearly half its market value since the turn of the year, meaning a “buy the dip” opportunity could be in the cards.
Furthermore, Ekso Bionics is developing partnerships at scale, providing it with a revenue pipeline. For example, the firm recently announced a research partnership with Shepherd Center, adding to its existing network of partnerships. Moreover, the company reported $3.8 million in first-quarter revenue in April, showing it has successfully monetized its past alliances.
Lastly, key metrics suggest that EKSO stock is grossly undervalued. For instance, Ekso Bionics has an Enterprise Value-to-Earnings Before Interest Tax Depreciation and Amortization (EV/EBITDA) ratio of merely 0.46x.
I’m bullish here, folks!
ReWalk Robotics (LFWD)
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ReWalk Robotics (NASDAQ:LFWD) is a medical technology company emphasizing gait training and mobility for lower limb disabilities. The firm has been around for more than two decades. However, like Ekso Bionics, ReWalk Robotics’ time in the spotlight has only recently emerged. As such, an early-stage position in LFWD stock might be prudent.
Dialing into ReWalk’s near-term results sets a base for further analysis. The company reported mixed results in its first quarter, missing its revenue target by $250,000 but surpassing its earnings-per-share target by eight cents. However, the firm said it anticipates enhanced sales traction for the remainder of 2024 and, therefore, expects its full-year revenue to settle between $28 million and $32 million.
ReWalk will likely experience ups and downs in the next few years. Nevertheless, factors such as the firm’s three-year compound annual growth rate (CAGR) of 53.52%, a comprehensive product pipeline, and an Enterprise Value-to-Revenue ratio of 0.75x suggest that LFWD stock is undervalued.
Myomo (MYO)
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Myomo (NYSE:MYO) is a compelling prospect. The company is known for MyoPro, a product line of lightweight electronic arm braces. The braces cater to those who have suffered strokes, brachial plexus injuries, cerebral palsy, and other neuromuscular injuries. Moreover, the firm provides ancillary services, providing consumers with a convenient product integration experience.
Why did I decide to add Myomo to the list?
Like Ekso Bionics and ReWalk, Myomo is protected by a market with high barriers to entry. However, I see additional zeal in the company’s singular focus, which emphasizes becoming the best in a niche part of the exoskeleton industry. Furthermore, Myomo has proven financial results. For example, the company recently delivered its first-quarter earnings report, revealing $3.75 million in revenue, causing its five-year CAGR to settle at 45.86%.
Considering the abovementioned, I deem MYO stock a solid fundamental option. Sure, its valuation is debatable. I mean, the MYO stock has an elevated price-to-sales ratio of 8.11x. Nonetheless, this seems like a growth story instead of a value opportunity.
Although a risky bet, I’m optimistic about MYO stock’s future.
On the date of publication, the responsible editor did not have (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 writer, subject to the InvestorPlace.com Publishing Guidelines.
Steve Booyens co-founded Pearl Gray Equity and Research in 2020 and has been responsible for cross-asset research and PR ever since. Before founding the firm, Steve spent time working in various finance roles in London and South Africa. He holds an MSc in Investment Banking from Queen Mary – University of London. Furthermore, Steve obtained his CFA Charter on April 26, 2024, and is working toward his Ph.D. in Finance. His articles are published on various reputable web pages such as Seeking Alpha, TipRanks, Yahoo Finance, and Benzinga. Steve’s articles on InvestorPlace don’t constitute financial advice. However, they form an interesting juxtaposition between mainstream opinion and objective theory, allowing readers to benefit from unbiased commentary. Readers can expect coverage on frequently traded stocks, REITs, fixed-income funds, CEFs, and ETFs.
