COGNEX CORPORATION ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The prospective high growth for the next fiscal years is among the main assets of the company
● 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.
● Historically, the company has been releasing figures that are above expectations.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 53.96 USD
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at USD 72.19.
● Technically, the stock approaches a strong medium-term resistance at USD 72.43.
● Based on current prices, the company has particularly high valuation levels.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 49.73 times its estimated earnings per share for the ongoing year.
● The company is not the most generous with respect to shareholders' compensation.
