Momentum Stock Watch: Cognex Corporation (CGNX)

Company Profile:

Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate tasks primarily in manufacturing processes. It develops, manufactures, and markets modular vision systems and ID products that are used to automate the manufacture and tracking of discrete items, such as cellular phones, aspirin bottles, and automobile wheels by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process. The company sells its products through direct sales force, as well as through a network of integration and distribution partners worldwide. Cognex Corporation was founded in 1981 and is headquartered in Natick, Massachusetts.

Recent News:

Cognex Corporation (CGNX) announced that Richard A. Morin, Executive Vice President and CFO of Cognex, will discuss the company’s performance and future prospects at the Robert W. Baird Industrial Conference at The Four Seasons Hotel, Chicago, IL. Mr. Morin’s presentation will be on Wednesday, November 11, 2015, beginning at 2:00 p.m. Eastern Time.

Cognex Corporation (CGNX) will release earnings for the third quarter of 2015 on Monday, November 2, 2015, after the market closes, and will host a conference call that same day at 5:00 p.m.

For the quarter ended June 30, 2015, Cognex Corp. reports revenues of USD 143.99 million, net Earnings of USD 43.52 million, and earnings per Share (EPS) of USD 0.49.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

CGNX’s strengths can be seen in its better growth, strong profitability and better efficiency. Its revenue has increased over last year. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and RSI is increasing to 56.78. We rate Cognex Corporation (CGNX) a STRONG BUY.