These growth stocks have an interesting combination of secular and cyclical growth prospects. In other words, they can grow through expansions in their end markets (cyclical) and also grow as a consequence of increasing adoption of their technologies. That's why I think machine vision company (NASDAQ: CGNX), and power and sensing technology company ON Semiconductors (NASDAQ: ON) are stocks to buy now.

A quick look at this company's long-term revenue and gross profit progressions shows just how volatile its revenue and profit growth are. It also shows a long-term uptrend that comes from the increasing adoption of machine vision in technology. 

That comes from key end markets such as consumer electronics, where its technology is used in smartphone production to monitor and guide the layering of screens; logistics, where it's used in e-commerce fulfillment automation; and automotive, where it's used to monitor and optimize production. Meanwhile, Cognex continues to grow its revenue in other markets such as the medical industry and the food and beverage industry.

Continue reading

Source Fool.com