Why Now's the Time to Buy iRobot

In today's video, I look at iRobot (NAS: 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 (NAS: 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.

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At the time thisarticle was published Fool contributor Tamara Rutter owns shares of Amazon. Follow her onTwitterusing the handle: @TamaraRutterfor weekly stock picks and other Foolish insights. The Motley Fool owns shares of Amazon.com. Motley Fool newsletter services have recommended buying shares of iRobot and Amazon.com. 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.

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