Cognex Corporation
CGNX
Delayed Nasdaq - 09/24 10:00:00 pm
58.96USD
+1.43%

A trend reversal is in sight

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Anas Lozach
Analyst

Strategy published on : 03/07/2018 | 18:18

long trade
Stop-loss triggered

Entry price : 53.645$
Target : 62$
Stop-loss : 47$
Potential : 15.57%

The timing from a technical point of view appears attractive to go long in shares of Cognex Corporation and to anticipate a trend reversal.
Investors have an opportunity to buy the stock and target the $ 62.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.


Strengths

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 59% by 2020.

● The group's activity appears highly profitable thanks to its outperforming net margins.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.

● Historically, the company has been releasing figures that are above expectations.

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● The company's "enterprise value to sales" ratio is among the highest in the world.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 37.2 times its estimated earnings per share for the ongoing year.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

Zonebourse.com 2018
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