Robotics, automation and AI stocks enjoyed a stellar start to the year, with the ROBO Global Robotics & Automation Index rising by 18 percent in the first quarter (Q1) and the Artificial Intelligence Index enjoying a 26 percent increase during the same period, outpacing global equities and defying the deteriorating macro-economic outlook.
Within the ROBO Global Robotics & Automation Index leaders in 2019’s Q1 included
consumer robotics which benefitted from a 41 percent increase, energy which experienced a 32 percent bounce and logistics & warehouse automation which rose by 28 percent. Meanwhile, security underperformed by 20 percent and 3D printing suffered a two percent decline.
From a regional perspective, the US and Japan were the top contributors, enjoying respective increases of 19 and 20 percent, while Germany relatively underperformed with only a 12 percent increase.
Earnings estimates for members of the ROBO Index were stabilized in Q1 and there are expectations of 8 percent EPS growth in 2019 and potentially greater growth anticipated in 2020. This contrasts greatly with the economic outlook for earnings estimates across equity markets, which have have come down for four consecutive quarters.
The results confirm that the market has rebounded since the volatile closing months of 2018, with global equities being influenced by a significant monetary policy pivot at central banks led by the Federal Reserve in the US and opening suggestions of a turn in China credit growth after three years of slowdown in the sector. The general de-escalation of geopolitical risks around US-China trade has also been a factor in the positive results.
Another factor was institutional investors reverting to stocks including in best-in-class robotics, automation and AI stocks which closed 2018 at valuations unmet since 2013.
The ROBO Global Robotics & Automation Index consists of over 80 stocks focused on the entire robotics and automation value sector, covering over 15 countries and listings on multiple foreign and domestic exchanges.
