QUICK BUY ALERT: COGNEX (CGNX)

We’re finally back with another stock recommendation: Cognex (CGNX).

Cognex has been a big player since the early 80s, making a business out of giving machines the ability to see. What does this mean, exactly? Cognex specializes in creating hardware and software that allows machines to analyze and obtain visual information correctly. A famous example of this technology that everyone is familiar with is barcode readers. Without this innovation, many processes worldwide would be slowed and potentially halted altogether, but this isn’t the only application. This technology also allows machines to detect flaws under varying circumstances: think production lines or automatic sorting machines. If there’s anything wrong with the products being handled, machines use this technology to detect that.

Cognex has offices and provides its services throughout the globe, and for decades, it has been the number one manufacturer of this technology, which it seeks to improve upon every day. Due to the company’s ability to create hardware and software, their products are tailor-made for whoever needs one of these vision systems. The best part is that there are and will always be companies in need of this technology—if a company is manufacturing products on a large scale, it’s almost guaranteed that they’ll need one, so they’ll never run out of work and ways to improve.

As the capabilities of artificial intelligence grow, so do this company’s prospects. Furthermore, as other companies and small businesses find their footing in response to stabilizing inflation, more and more of them will find a need for this technology as their businesses resume their traditional growth. Cognex is seeing some very nice momentum as of late and has beaten earnings estimates five times in a row. We’re confident that we’ll see this stock grow over the next several years, and we’d like to be a part of that push.

We’ve purchased Cognex (CGNX) at $47.66.