Take Advantage of the Dip to Buy This Unstoppable Long-Term Growth Stock
The stock market did not take kindly to machine vision company Cognex Corp.'s (NASDAQ: CGNX) recent second-quarter earnings report. Unfortunately, its end markets are weakening in 2024, and the hoped-for pick-up in orders in the all-important second and third quarters (as customers prepare for the fourth quarter) is highly unlikely to come in 2024. Still, much of the bad news is already in the price now, and Cognex is a company with outstanding long-term growth prospects. Here's why it's an attractive stock to buy right now.
The company's revenue declined by 17% in 2023, and the bounce back in 2024 isn't going to be as much as investors were hoping. Cognex's revenue declined 1% in the second quarter, and excluding the benefits of acquisitions and foreign currency movements, it was down by 7%.
Moreover, management's revenue guidance for the third quarter of $225 million to $240 million was below market expectations and disappointing, considering second-quarter revenue was $239 million.
Source Fool.com
Cognex Corp. Stock
Currently there is a rather positive sentiment for Cognex Corp. with 14 Buy predictions and 3 Sell predictions.
As a result the target price of 49 € shows a positive potential of 36.91% compared to the current price of 35.79 € for Cognex Corp..
