CGNX was very overvalued and has now come to a better valuation. If you consider that it's estimated to grow about 17% for FY19, there's little upside for now - and it has come down hard given that estimates for this year were much lower:EuRaFree wrote: ↑Oct 29th, 2018 6:12 pmHi Rod,
What's your intake on CGNX? It hit 52w low. And after Q3 earnings another 10% down today. However, they increased the dividend (growing for 8 years) and authorized another 200m buyback. 800k in cash and no debt.
It looks very attractive now I think.
Appreciate your opinion on this one.
The companies covering Cognex have a good tracking record in getting estimates properly; for the last 20 years, CGNX has traded at a PE between 30 and 35, so if targets are met next year, prices might continue to follow this pattern. However, I've noticed that the market seems to start to care now less for revenue and more for operating margin - which has knocked down a lot of the Nasdaq stocks. I would wait another 5% or 10% before adding some, if I was going to buy it.