New Lifetime High Reached: Cognex (CGNX) - TheStreet

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 or Stephanie Link.

Trade-Ideas LLC identified

Cognex

(

CGNX

) 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 $20.0 million.
  • CGNX has traded 195,648 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 44.9. Currently there are 2 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 460,900 shares per day over the past 30 days. Cognex has a market cap of $3.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.44 and a short float of 3.1% with 6.44 days to cover. Shares are down 0.6% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cognex as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, growth in earnings per share and increase in net income. 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:

  • CGNX's revenue growth has slightly outpaced the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 12.4%. 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. Along with this, the company maintains a quick ratio of 2.59, which clearly demonstrates the ability to cover short-term cash needs.
  • COGNEX CORP has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COGNEX CORP increased its bottom line by earning $0.83 versus $0.78 in the prior year. This year, the market expects an improvement in earnings ($1.15 versus $0.83).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry average. The net income increased by 18.8% when compared to the same quarter one year prior, going from $15.58 million to $18.51 million.
  • The gross profit margin for COGNEX CORP is currently very high, coming in at 80.01%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.35% significantly outperformed against the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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