Can iRobot Weather a Market Downturn?

With better-than-expected results in the most recent quarter and the stock rallying 165% over the trailing 12 months, it's tempting to think of iRobot (NASDAQ: IRBT) stock as more than capable of weathering a market downturn. But is it? Expensive household robots for cleaning floors and pools aren't exactly must-haves for every market, even if 80% of consumers who buy the cuddly Roomba vacuum name it as if it were a pet.

Diligent investors nervous about whether iRobot is a durable stock for the long term may want to apply three standard tests to find out for sure: Check the balance sheet, check the management's track record for investing, and check on the long-term strategy for the business.

The Roomba is a hit with millions, but iRobot has bigger ambitions. Image source: Getty Images.

Source: Fool.com