Bear of the Day: iRobot Corp. (IRBT)

This story originally appeared on Zacks

iRobot IRBT makes robotic vacuums and more. The company also entered a completely different and potentially important market. However, IRBT shares have been on a wild ride of ups and downs for the past five years and things have been just as crazy over the past 12 months.

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The iRobot Company of Bedford, Massachusetts makes and sells small household robot cleaners that slide around the floor to help with tidying. Roomba robotic vacuum cleaner has led sales for years. Today, iRobot’s Roomba portfolio includes multiple vacuum models that range in price from about $275 to over $1,000.

The company also sells several Braava robotic wipers and has entered the handheld vacuum space. Beyond cleaning, iRobot now sells educational robots designed to help kids learn how to code. Their root crypto bots start at $129.99 and can turn into hits as parents look to help their kids get a leg up in the future.

IRobot’s revenue growth has been strong over the past decade. But Wall Street has never been convinced of its long-term business model, as IRBT stock has only risen 18% in the past five years. That’s far behind the S&P 500’s 120% run and the tech sector’s 163% run.

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IRBT shares are also being sold heavily (26% of outstanding shares). This contributes to its wild volatility and helped it plunge into the meme-stock mania in early 2021. IRobot shares are down 20% in the past year and 30% since early November. IRBT stocks are currently hovering well below the 50-day and 200-day moving averages.

Zacks estimates that iRobot’s adjusted earnings for fiscal year ’21 are down 65% from a year ago with sales up 10%. It is expected to record strong growth next year. However, its earnings estimates have slipped since its third-quarter report amid global supply chain setbacks, rising costs, and other headwinds.

IRobot’s agreed earnings per share figure for fiscal year 22 is 30% lower than it was 30 days ago. IRBT’s aggregate earnings reviews activity helps Zacks have a rating of #5 (strong sell) at the moment. The stock also has an overall VGM score of “F” and iRobot is part of an industry that’s in the bottom 6% of Zacks’ 250+ industries right now.

Zacks Names “Single Best Pick to Double”

Out of thousands of stocks, 5 experts from Zacks each chose their favorite to skyrocket +100% or more in the coming months. Of these five, Research Director Shiraz Mian chooses someone with the most explosive positive side of all.

In the words of one investor, “Cure and prevent hundreds of diseases… what should this market be worth?” This company can rival or outperform other recent Zacks stocks that are set to double like Boston Beer which is up +143.0% in just over 9 months and NVIDIA which is booming +175.9% in one year.

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