Tuesday, June 3, 2014

Is Cognex Corporation a Buy?

Vision machine company Cognex Corporation  has had a great run over the last two years, with its stock price up more than 84%, and the move reflects its strong operating performance. Moreover, other companies with exposure to factory automation spending like Rockwell Automation   and ABB Ltd.   are seeing some positive signs, so does it all add up to make Cognex a buy?

Cognex offers good growth prospects
Essentially, Cognex's main growth drivers come from four main sources, all of which are seeing the company expand its total addressable market, or TAM. For those that don't know the company well, Cognex provides machine vision solutions that monitor automated manufacturing processes.