Today Cognex (CGNX) Hits New Lifetime High
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cognex as such a stock due to the following factors:
- CGNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.4 million.
- CGNX has traded 7,620 shares today.
- CGNX is trading at a new lifetime high.
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More details on CGNX:
Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate tasks primarily in manufacturing processes. It operates in two divisions, Modular Vision Systems and Surface Inspection Systems. CGNX has a PE ratio of 35.2. Currently there are 4 analysts that rate Cognex a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Cognex has been 570,400 shares per day over the past 30 days. Cognex has a market cap of $4.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.13 and a short float of 3.8% with 5.05 days to cover. Shares are up 17.7% year-to-date as of the close of trading on Friday.
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Analysis:
rates Cognex as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 22.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CGNX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, CGNX has a quick ratio of 2.44, which demonstrates the ability of the company to cover short-term liquidity needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, COGNEX CORP's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 156.71% to $92.98 million when compared to the same quarter last year. In addition, COGNEX CORP has also vastly surpassed the industry average cash flow growth rate of -2.84%.
- The gross profit margin for COGNEX CORP is currently very high, coming in at 77.40%. Regardless of CGNX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CGNX's net profit margin of 22.72% significantly outperformed against the industry.
- You can view the full Cognex Ratings Report.
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