Latest news with #Cognex
Yahoo
7 hours ago
- Automotive
- Yahoo
3 Underdog Stocks That Could Outperform the Market in the Second Half of 2025
Key Points Machine vision adoption will only increase with artificial intelligence (AI) infused in it. The multiyear backlogs at aircraft manufacturers imply strong growth prospects for this supplier. Tobotaxis and full self-driving solutions are the key to this company's investment case. These 10 stocks could mint the next wave of millionaires › These three stocks are fundamentally sound companies with excellent underlying growth prospects. However, shares in machine vision expert Cognex (NASDAQ: CGNX), advanced materials company Hexcel (NYSE: HXL), and Tesla (NASDAQ: TSLA) all declined in the first half of 2025. On balance, all three are worth buying, as their issues appear to be near term, and their long-term investment cases remain excellent. Cognex's machine vision It's been a difficult few years for the leading machine vision company, as its main end markets suffered cyclical weakness. Let's put it this way: If you are an automotive company, consumer electronics, or logistics company, and seeing slowing end markets due to relatively high interest rates, then the first thing you will cut is capital spending on new product development and expanding production lines. That's what happened with Cognex over the last couple of years, and it's easily seen in a chart of its revenue over an extended period. Another thing you might notice is that, although Cognex's revenue does oscillate wildly, it does so about an upward trend line, and I think there's every reason to believe Cognex could get back to an aggressive growth phase in the near future. It's not only that machine vision is an integral part of the fourth industrial revolution (the integration of the digital and physical worlds using the Internet of Things, and advanced data analytics), but it's also a technology whose relevance will increase with the growing adoption of artificial intelligence (AI) and deep learning. Instead of rules-based machine vision (such as monitoring a product assembly line for a known defect), AI-infused machine vision can learn from masses of data and examples fed into it, and even learn to recognize defects that product engineers didn't previously understand. With the underlying growth in the adoption of machine vision (with AI as an additional driver) and a return to cyclical growth in its key end markets (automakers and consumer electronics can't avoid developing new products forever), Cognex is positioned to achieve management's aim of 10% to 11% annual organic growth through the cycle. Hexcel's near-term challenges and long-term opportunities Selling advanced graphite composite materials to Boeing, Airbus, and their subcontractors presents a promising business opportunity, considering both companies' substantial backlogs of aircraft slated for delivery over the next decade (8,754 for Airbus, and over 5,900 for Boeing). In addition, Hexcel also supplies materials for the electric vertical takeoff and landing (eVTOL) market (it's partnering with ), also sells to Embraer, and as CEO Tom Gentile noted on the recent earnings call, "the modern large cabin business jets now have extensive composite content, with ship set value between $200,000 and $500,000 per shipset." Underpinning all of this is the positive trend in usage of composite materials, which increases with every new generation of aircraft, notably on wide-bodies such as the Airbus A350, which has a shipset of value of $4.5 million to $5 million for Hexcel. The long-term outlook is excellent, but in the near term, Hexcel catches a cold when Airbus and Boeing start sneezing over supply chain issues that lower their production ramps. Still, it's undoubtedly a question of when, not if, the commercial aircraft production ramp gets back on track, and there are already some very positive signs that supply chain issues with engines are being overcome. As such, investing in Hexcel could set you up for life. Don't count out Tesla Tesla's electric vehicle (EV) sales have declined this year, and CEO Elon Musk openly acknowledges the company could face a few rough quarters, not least due to the removal of EV tax credits. A combination of rivals releasing EVs and trying to establish market share, and ongoing relatively high interest rates, has pressured sales of Tesla's Model Y in particular. At the same time, and on a more positive note, Tesla has begun its robotaxi rollout, and the key to the investment case for the stock is the potential growth in its robotaxi and unsupervised full self-driving (FSD) businesses. As previously discussed, it's not just the massive potential in the robotaxi business in itself; a successful rollout and the future release of unsupervised FSD to the public will add significant value to Tesla's EVs. All the major automakers have either invested heavily in or explored robotaxis, and the reality is that Tesla remains best placed to succeed, provided it gets widespread regulatory approval. No other automaker has anything close to its market share in EVs in the U.S. It's far from clear when, and if ever, rivals like Alphabet's Waymo will be profitable, and Tesla's fleet of vehicles continues to rack up vast amounts of data to help improve its FSD. As the rollout expands, and Tesla potentially deals with its flagging Model Y sales by releasing an affordable Model Y as planned in the fourth quarter, its stock price can appreciate through 2025. However, be aware that any significant issue with the rollout is likely to hurt the stock. Tesla is risky, but the risk comes with a potential reward in this case. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $473,820!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $43,540!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $653,427!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of August 4, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Cognex, and Tesla. The Motley Fool recommends Hexcel. The Motley Fool has a disclosure policy. 3 Underdog Stocks That Could Outperform the Market in the Second Half of 2025 was originally published by The Motley Fool
Globe and Mail
2 days ago
- Automotive
- Globe and Mail
3 Underdog Stocks That Could Outperform the Market in the Second Half of 2025
Key Points Machine vision adoption will only increase with artificial intelligence (AI) infused in it. The multiyear backlogs at aircraft manufacturers imply strong growth prospects for this supplier. Tobotaxis and full self-driving solutions are the key to this company's investment case. These 10 stocks could mint the next wave of millionaires › These three stocks are fundamentally sound companies with excellent underlying growth prospects. However, shares in machine vision expert Cognex (NASDAQ: CGNX), advanced materials company Hexcel (NYSE: HXL), and Tesla (NASDAQ: TSLA) all declined in the first half of 2025. On balance, all three are worth buying, as their issues appear to be near term, and their long-term investment cases remain excellent. Cognex's machine vision It's been a difficult few years for the leading machine vision company, as its main end markets suffered cyclical weakness. Let's put it this way: If you are an automotive company, consumer electronics, or logistics company, and seeing slowing end markets due to relatively high interest rates, then the first thing you will cut is capital spending on new product development and expanding production lines. That's what happened with Cognex over the last couple of years, and it's easily seen in a chart of its revenue over an extended period. CGNX Revenue (TTM) data by YCharts Another thing you might notice is that, although Cognex's revenue does oscillate wildly, it does so about an upward trend line, and I think there's every reason to believe Cognex could get back to an aggressive growth phase in the near future. It's not only that machine vision is an integral part of the fourth industrial revolution (the integration of the digital and physical worlds using the Internet of Things, and advanced data analytics), but it's also a technology whose relevance will increase with the growing adoption of artificial intelligence (AI) and deep learning. Instead of rules-based machine vision (such as monitoring a product assembly line for a known defect), AI-infused machine vision can learn from masses of data and examples fed into it, and even learn to recognize defects that product engineers didn't previously understand. With the underlying growth in the adoption of machine vision (with AI as an additional driver) and a return to cyclical growth in its key end markets (automakers and consumer electronics can't avoid developing new products forever), Cognex is positioned to achieve management's aim of 10% to 11% annual organic growth through the cycle. Hexcel's near-term challenges and long-term opportunities Selling advanced graphite composite materials to Boeing, Airbus, and their subcontractors presents a promising business opportunity, considering both companies' substantial backlogs of aircraft slated for delivery over the next decade (8,754 for Airbus, and over 5,900 for Boeing). In addition, Hexcel also supplies materials for the electric vertical takeoff and landing (eVTOL) market (it's partnering with Archer Aviation), also sells to Embraer, and as CEO Tom Gentile noted on the recent earnings call, "the modern large cabin business jets now have extensive composite content, with ship set value between $200,000 and $500,000 per shipset." Underpinning all of this is the positive trend in usage of composite materials, which increases with every new generation of aircraft, notably on wide-bodies such as the Airbus A350, which has a shipset of value of $4.5 million to $5 million for Hexcel. The long-term outlook is excellent, but in the near term, Hexcel catches a cold when Airbus and Boeing start sneezing over supply chain issues that lower their production ramps. Still, it's undoubtedly a question of when, not if, the commercial aircraft production ramp gets back on track, and there are already some very positive signs that supply chain issues with engines are being overcome. As such, investing in Hexcel could set you up for life. Don't count out Tesla Tesla's electric vehicle (EV) sales have declined this year, and CEO Elon Musk openly acknowledges the company could face a few rough quarters, not least due to the removal of EV tax credits. A combination of rivals releasing EVs and trying to establish market share, and ongoing relatively high interest rates, has pressured sales of Tesla's Model Y in particular. At the same time, and on a more positive note, Tesla has begun its robotaxi rollout, and the key to the investment case for the stock is the potential growth in its robotaxi and unsupervised full self-driving (FSD) businesses. As previously discussed, it's not just the massive potential in the robotaxi business in itself; a successful rollout and the future release of unsupervised FSD to the public will add significant value to Tesla's EVs. All the major automakers have either invested heavily in or explored robotaxis, and the reality is that Tesla remains best placed to succeed, provided it gets widespread regulatory approval. No other automaker has anything close to its market share in EVs in the U.S. It's far from clear when, and if ever, rivals like Alphabet's Waymo will be profitable, and Tesla's fleet of vehicles continues to rack up vast amounts of data to help improve its FSD. As the rollout expands, and Tesla potentially deals with its flagging Model Y sales by releasing an affordable Model Y as planned in the fourth quarter, its stock price can appreciate through 2025. However, be aware that any significant issue with the rollout is likely to hurt the stock. Tesla is risky, but the risk comes with a potential reward in this case. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $473,820!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $43,540!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $653,427!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
5 days ago
- Business
- Yahoo
1 Incredible Reason to Buy This Growth Stock Before Interest Rates Drop
Key Points This company is adding to the value of its offerings by infusing them with artificial intelligence. After a difficult period, the company's growth looks set to take off again in 2026. 10 stocks we like better than Cognex › Investors often talk about growth stocks in terms of their cyclical growth (tied to the economy) and secular growth (benefiting from a structural and fundamental change in an industry). The distinction is beneficial to understand when looking at machine vision company Cognex (NASDAQ: CGNX). Cognex has a big future It's no secret that the increasing adoption of technologies like automation and machine vision is the key to modern manufacturing, particularly in reshoring it from countries with lower labor costs. In addition, machine vision's ability to perform repetitive tasks in assembly lines and logistics -- guiding, monitoring, inspecting, and controlling processes more effectively than the human eye -- is a significant plus. Also, consider the potential of deep learning through artificial intelligence (AI). For example, Cognex's software can learn from "right " and "wrong" examples given to it, enabling the hardware to identify anomalies in production. As such, Cognex is also a way to play the AI evolution, as it will significantly enhance the value-add of its solutions. Cognex and interest rates All of the above is an example of secular growth. However, like almost all companies, Cognex also relies on cyclical growth. Furthermore, its exposure to capital spending in interest-rate-sensitive areas, like automotives (notably electric vehicle batteries) and consumer electronics (Apple has been a significant customer in the past), leaves it exposed to the ups and downs of the economy. When the economy is booming, auto and electronics companies are willing to make expansionary capital spending decisions, and when it's weak, cutting capital spending is often the first thing companies look to do. Unfortunately, the relatively high interest rates have hit Cognex's overall growth prospects, even as it grows its AI solutions by embedding more AI/deep learning into its solutions. If and when interest rates do move lower, there's likely to be some spending due from automakers and electronics companies as end demand at least stabilizes, and they need to invest in new product development. That will benefit Cognex. All told, the combination of secular and cyclical growth makes Cognex an excellent stock to buy ahead of a rate cut. Do the experts think Cognex is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Cognex make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,047% vs. just 181% for the S&P — that is beating the market by 865.26%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Cognex. The Motley Fool has a disclosure policy. 1 Incredible Reason to Buy This Growth Stock Before Interest Rates Drop was originally published by The Motley Fool Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
04-08-2025
- Business
- Yahoo
Zebra (ZBRA) Q2 Earnings Report Preview: What To Look For
Enterprise data capture company Zebra Technologies (NASDAQ:ZBRA) will be announcing earnings results this Tuesday before market hours. Here's what you need to know. Zebra beat analysts' revenue expectations by 1.4% last quarter, reporting revenues of $1.31 billion, up 11.3% year on year. It was a slower quarter for the company, with a significant miss of analysts' EPS guidance for next quarter estimates and revenue guidance for next quarter slightly missing analysts' expectations. Is Zebra a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Zebra's revenue to grow 6.1% year on year to $1.29 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $3.31 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zebra has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.2% on average. Looking at Zebra's peers in the tech hardware & electronics segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mirion delivered year-on-year revenue growth of 7.6%, beating analysts' expectations by 3.1%, and Cognex reported revenues up 4.1%, topping estimates by 1.3%. Mirion traded down 11.1% following the results while Cognex was up 20.9%. Read our full analysis of Mirion's results here and Cognex's results here. The euphoria surrounding Trump's November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the tech hardware & electronics stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.4% on average over the last month. Zebra is up 5.8% during the same time and is heading into earnings with an average analyst price target of $349 (compared to the current share price of $335.55). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Yahoo
30-07-2025
- Business
- Yahoo
Cognex (NASDAQ:CGNX) Exceeds Q2 Expectations, Stock Soars
Machine vision technology company Cognex (NASDAQ:CGNX) reported revenue ahead of Wall Street's expectations in Q2 CY2025, with sales up 4.1% year on year to $249.1 million. Guidance for next quarter's revenue was optimistic at $255 million at the midpoint, 2.1% above analysts' estimates. Its non-GAAP profit of $0.25 per share was 5.8% above analysts' consensus estimates. Is now the time to buy Cognex? Find out in our full research report. Cognex (CGNX) Q2 CY2025 Highlights: Revenue: $249.1 million vs analyst estimates of $246 million (4.1% year-on-year growth, 1.3% beat) Adjusted EPS: $0.25 vs analyst estimates of $0.24 (5.8% beat) Adjusted EBITDA: $51.68 million vs analyst estimates of $48.75 million (20.7% margin, 6% beat) Revenue Guidance for Q3 CY2025 is $255 million at the midpoint, above analyst estimates of $249.7 million Adjusted EPS guidance for the full year is $0.27 at the midpoint, missing analyst estimates by 69% Operating Margin: 17.4%, up from 16.1% in the same quarter last year Free Cash Flow Margin: 16.2%, up from 9.7% in the same quarter last year Market Capitalization: $5.75 billion Company Overview Founded in 1981 when computer vision was in its infancy, Cognex (NASDAQ:CGNX) develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $929.6 million in revenue over the past 12 months, Cognex is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand. As you can see below, Cognex grew its sales at a decent 6.2% compounded annual growth rate over the last five years. This shows its offerings generated slightly more demand than the average business services company, a useful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Cognex's recent performance shows its demand has slowed as its annualized revenue growth of 2% over the last two years was below its five-year trend. This quarter, Cognex reported modest year-on-year revenue growth of 4.1% but beat Wall Street's estimates by 1.3%. Company management is currently guiding for a 8.6% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 8.2% over the next 12 months, an improvement versus the last two years. This projection is commendable and implies its newer products and services will catalyze better top-line performance. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Cognex has been a well-oiled machine over the last five years. It demonstrated elite profitability for a business services business, boasting an average operating margin of 21.8%. Analyzing the trend in its profitability, Cognex's operating margin decreased by 19.1 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Cognex generated an operating margin profit margin of 17.4%, up 1.4 percentage points year on year. This increase was a welcome development and shows it was more efficient. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Cognex's unimpressive 4.8% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. Cognex's two-year annual EPS declines of 6.7% were bad and lower than its 2% two-year revenue growth. Diving into the nuances of Cognex's earnings can give us a better understanding of its performance. While we mentioned earlier that Cognex's operating margin expanded this quarter, a two-year view shows its margin has declined by 9.4 percentage points. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. In Q2, Cognex reported adjusted EPS at $0.25, up from $0.23 in the same quarter last year. This print beat analysts' estimates by 5.8%. Over the next 12 months, Wall Street expects Cognex's full-year EPS of $0.81 to grow 20.8%. Key Takeaways from Cognex's Q2 Results It was great to see Cognex's revenue guidance for next quarter top analysts' expectations. We were also happy this quarter's revenue, EPS, and EBITDA outperformed Wall Street's estimates. On the other hand, its full-year EPS guidance missed. Overall, this print had some key positives. The stock traded up 9.6% to $37 immediately after reporting. So should you invest in Cognex right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
