CGNX Stock Analysis — Cognex Corporation
Sector: Industrial Automation
AI Verdict
You're paying a steep premium for a big rebound in earnings, but if Cognex's machine vision moat holds, the numbers suggest it's cheap for the growth you're getting.
Competitive Moat
Cognex specializes in machine vision systems used for automated quality control and inspection in manufacturing, leveraging proprietary algorithms and a large installed base. Its defensibility comes from deep domain expertise and sticky integration with factory automation workflows, making switching costly for customers.
Summary
Cognex is notable right now for its expected 128.0% forward EPS growth, which dwarfs most industrial peers.
Where It Stands
Cognex trades at 41.8x next year's earnings, well above the industrial sector median of 20x, but analysts expect EPS to more than double in the next 12 months.
Key Metrics
- Trailing P/E: 95.3x
- Forward P/E: 41.8x
- PEG Ratio: 0.74
- Earnings Growth: +1.3%
- Revenue Growth: +0.1%
- Dividend Yield: 0.01%
- 52-Week High: $71.90
- 52-Week Low: $29.00
Analyst Consensus
21 Buy · 8 Hold · 0 Sell (29 analysts)
Bull Case
The 128.0% forward EPS growth expectation means you're paying up, but the PEG ratio of 0.74 suggests the price is justified by the growth on offer.
Bear Case
If the forward P/E compresses from 41.8x to the sector median of 20x, the stock could lose over 50% even if earnings meet expectations.
Catalyst to Watch
Watch for quarterly earnings surprises or large automation contract wins, as either could validate or undermine the aggressive growth forecast.