In writing on Cognex (CGNX) in the past, I’ve said that whatever circumstances it would take to make this leading machine vision company look undervalued, they would probably look pretty ugly. And here we are – whether Covid-19 is a valid reason for a widespread market sell-off or just an excuse for institutions to sell off expensive stocks, it has driven a lot of quality names to much more reasonable valuations.
Cognex certainly has near-term risk. Capex in the auto sector remains weak and Cognex management believes that both auto and consumer electronics