Summary
iRobot is demonstrating its leadership position, proving the skeptics wrong.
iRobot maintains an edge over the competition as evident in its strong sales and gross margin.
I think iRobot will continue to maintain market share and grow at a strong pace.
I last wrote about iRobot (IRBT) back in December 2017 in an article which can be read at this link. The stock is up about 29% since then and on target for my original price target of $90 to be hit by the end of the year. The company's Q2 2018 results were strong and show that iRobot is maintaining its competitive edge, in line with my original thesis.
The skeptics of iRobot point out that the company faces an onslaught of competition for robotic vacuums, which rivals the Roomba. While there is a lot of competition, I feel that iRobot is a leader for this technology. The company's strong sales growth increase of 24% for Q2 demonstrates strong consumer demand. I continue to reinforce my thesis that iRobot will continue to innovate and remain the leader for robotic vacuums and possibly other products going forward.
