10 Cheap Robotics Stocks To Invest In Now

2. Cognex Corporation (NASDAQ:CGNX)

Analyst Upside (as of January 11): 27%

No. of Hedge Fund Holders: 34

Cognex Corporation (NASDAQ:CGNX) provides machine vision products to address different critical manufacturing and distribution challenges. The company operates through the machine vision technology segment. Cognex’s products help to automate the manufacturing and tracking of discrete items including, mobile phones, electric vehicle batteries, and e-commerce packages.

Over the past two years, the reduction in automobile production and other markets impacted by the global economic crisis have put pressure on Cognex’s operations. In 2025, automakers are expected to improve production due to a higher demand forecast. Whereas, warehouse spending will grow again with improved demand in the e-commerce sector. In that regard, history suggests these cyclical issues settle down in time. Cognex Corporation (NASDAQ:CGNX) is well-positioned considering its machine vision technology automation is driven by AI and IoT.

Impax Global Environmental Markets Fund stated the following regarding Cognex Corporation (NASDAQ:CGNX) in its Q3 2024 investor letter:

“Cognex Corporation (NASDAQ:CGNX) (Industrial Energy Efficiency, U.S.) sold off in the third quarter following a negative market reaction to the release of Q2 results. The share price had been moving higher throughout most of 2024 in anticipation of a recovery from factory automation weakness, with green shoots indicating abating headwinds and earnings normalization. While Q2 earnings exceeded expectations, below consensus Q3 guidance, management’s shift to a more cautious tone, and concerns of a weaker macroeconomic backdrop for this shorter-cycle, economically sensitive business, all contributed to a sharp sell-off. Despite a potential interruption of sequential improvement in their recovery, the long-term thesis remains intact.”