This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

iRobot Selloff Is an Opportunity to Buy Shares on the Cheap

Stocks in this article: IRBT GMCR

NEW YORK (TheStreet) -- iRobot's (IRBT) robot vacuums and other products help you clean the house, and you can clean up on the stock if bought now that it is down approximately 30% from its recent high.

This is a company that reported better earnings last month than the previous quarter. It is expanding globally, including in China, and has new products in the pipeline. Shares, at around $35, are up a fraction for the year to date but up nearly 7% for the past 52 weeks.

And yet, IRobot trades close to its low point for the year, $34.16, with a 52-week range of $28.90-$48.36. After hitting the yearly high on March 5 the stock has been in a downtrend since that point.

Read More: Warren Buffett’s Top 10 Dividend Stocks

I think that is unfair. The company beat analyst expectations by 6 cents per share and its all-important guidance was optimistic. Shares look oversold at these levels. That could bring the short covers in earlier than they had initially thought.

The short interest in the company is more than 30%, which can be seen as a positive especially if shares continue to go higher. iRobot has just traded up more than 10% from the lows -- if the current upside extends into the low $40 range this could be enough to scare off the shorts. I think it could reach $50 over the next year.

Rapid growth in the robotic application space has not really taken off in the mainstream just yet, but the longer-term opportunity is great. Here's the chance to get in at the early stage.

Read More: 8 Stocks George Soros Is Buying in 2014

Michelle Stacy joined iRobot's board this week. She was one of those responsible for the exceptional growth at Keurig Green Mountain Coffee (GMCR). With her on board to help iRobot grow brand awareness, accelerate innovation and ultimately make the brand into a worldwide household name, I can see the company's valuation going to $5 billion from the current $1 billion.

Could $100 a share be in iRobot's future?

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs