- Cognex posted good growth in Q2, and modestly beat expectations, but the market wasn't thrilled with the weaker guidance for consumer electronics and gross margins.
- I believe this is short-termism at its finest, as Cognex is prioritizing serving customers (incurring margin pressure) and building the business, including investing in a new major logistics customer relationship.
- The pandemic has accelerated interest in automation across a wide range of industries, and Cognex's machine vision hardware and software are key enabling technologies.
- Cognex shares aren't cheap, but there are a lot of industrials with similar or worse valuations and far less leverage to attractive long-term growth drivers.
For further details see:
Cognex Hits An Air Pocket And Analysts Start Caring About Multiples