Skip to main content

Cognex Corporation (CGNX) Stock Analysis

SellVALUE-TRAP 2/5High Confidence

Technology · Scientific & Technical Instruments

Sell if holding. At $60.80, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: revenues outside the United States (67%) (67.0%); Concentration risk — Supplier: third-party contract manufacturer in Indonesia (significant portion of products).

Cognex makes machine vision systems, sensors, and barcode readers for industrial automation across logistics, packaging, consumer electronics, automotive, and semiconductor markets; 2,745 employees globally. Approximately 67% of 2025 revenue from outside the US (25% Europe, 16%... Read more

$60.80+11.9% A.UpsideScore 5.8/10#4 of 14 Scientific & Technical Instruments
QualityF-score8 / 9FCF yield1.76%
IncomeYield0.54%(5y avg 0.62%)Payout38.82%sustainable
Stop $56.40Target $67.86(analyst − 10%)A.R:R 0.9:1
Analyst target$75.40+24.0%20 analysts
$67.86our TP
$60.80price
$75.40mean
$94

Sell if holding. At $60.80, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: revenues outside the United States (67%) (67.0%); Concentration risk — Supplier: third-party contract manufacturer in Indonesia (significant portion of products). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.8/10, high confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 71d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

Recent Developments — Cognex Corporation

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
V7 quality resilience bonus: +0.2 (Q=7.4 in RISK_OFF)
Strong earnings beat streak (3/4)
High-quality business
Risks
Concentration risk — Geographic: revenues outside the United States (67%) (67.0%)
Concentration risk — Supplier: third-party contract manufacturer in Indonesia (significant portion of products)
Sector modifier (Technology): -0.8

Key Metrics

P/E (TTM)72.8
P/E (Fwd)35.5
Mkt Cap$10.3B
EV/EBITDA44.5
Profit Mgn13.6%
ROE9.7%
Rev Growth24.3%
Beta1.48
Dividend0.54%
Rating analysts29

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C1.07bearish
IV51%elevated

Concentration Risks(10-K Item 1A)

  • HIGHGeographicrevenues outside the United States (67%)67%
    10-K Item 1: 'Sales to customers based outside of the United States represented approximately 67% of our total revenue in 2025, with approximately 25% from customers based in Europe, approximately 16% from customers based in Greater China'
  • HIGHSupplierthird-party contract manufacturer in Indonesia (significant portion of products)
    10-K Item 1A: 'A significant portion of our products is manufactured by a third-party contractor located in Indonesia'

Material Events(8-K, last 90d)

  • 2026-02-19Item 4.01HIGH
    8-K/A: Grant Thornton dismissed as auditor upon completion of FY2025 audit on Feb 13, 2026. KPMG LLP selected as independent registered public accounting firm for FY2026. No disagreements with GT cited.
    SEC filing →
  • 2026-02-17Item 5.02LOW
    Dr. Sami Atiya and Chris Donato appointed as directors effective March 2, 2026. Dr. Atiya to serve on Nominating/Governance/Sustainability Committee; Mr. Donato on Compensation Committee. No reason cited for vacancies.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.8
Volume
0.9
Obv
1.0
Rsi
5.0
Ma Position
9.0
Volume distribution (falling OBV)Above 200-day MA

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Value Rank
1.8
Quality Rank
5.4
Growth Rank
8.6
Industry growth leader
GatesMomentum 3.3<4.5A.R:R 0.9 < 1.5@spotInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 71d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
64 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $52.36Resistance $71.90

Price Targets

$56
$68
A.Upside+11.6%
A.R:R0.9:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Momentum score 3.3/10 — below 4.5 minimum
! Reward/Risk 0.9:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-29 (71d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CGNX stock a buy right now?

Sell if holding. At $60.80, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: revenues outside the United States (67%) (67.0%); Concentration risk — Supplier: third-party contract manufacturer in Indonesia (significant portion of products). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $56.40. Score 5.8/10, high confidence.

What is the CGNX stock price target?

Take-profit target: $67.86 (+11.9% upside). Prior stop was $56.40. Stop-loss: $56.40.

What are the risks of investing in CGNX?

Concentration risk — Geographic: revenues outside the United States (67%) (67.0%); Concentration risk — Supplier: third-party contract manufacturer in Indonesia (significant portion of products); Sector modifier (Technology): -0.8.

Is CGNX overvalued or undervalued?

Cognex Corporation trades at a P/E of 72.8 (forward 35.5). TrendMatrix value score: 4.5/10. Verdict: Sell.

What do analysts say about CGNX?

29 analysts cover CGNX with a consensus score of 3.9/5. Average price target: $75.

What does Cognex Corporation do?Cognex makes machine vision systems, sensors, and barcode readers for industrial automation across logistics,...

Cognex makes machine vision systems, sensors, and barcode readers for industrial automation across logistics, packaging, consumer electronics, automotive, and semiconductor markets; 2,745 employees globally. Approximately 67% of 2025 revenue from outside the US (25% Europe, 16% Greater China, 26% other); contract manufacturing primarily in Indonesia and Malaysia.

Related stocks: KEYS (Keysight Technologies Inc.) · GRMN (Garmin Ltd.) · TRMB (Trimble Inc.) · ESE (ESCO Technologies Inc.) · FTV (Fortive Corporation)