Why Cognex Corp. (CGNX) Went Down On Thursday?

We recently published a list of Pulse of the Market: Wednesday’s 10 Worst Performers. In this article, we are going to take a look at where Cognex Corp. (NASDAQ:CGNX) stands against other Wednesday’s worst performers.

Shares on Wall Street bounced back from a bloodbath, with all main indices ending in the green on Wednesday, as investors cheered the Federal Reserve’s decision to keep interest rates unchanged.

The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent.

Meanwhile, 10 companies defied overall market optimism, booking losses during the trading session. In this article, let’s take a look at the 10 worst-performing stocks and explore the reasons behind their drop.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in trading volume.

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Cognex Corp. (NASDAQ:CGNX)

Cognex Corp. saw its share prices drop by 3.49 percent on Wednesday to close at $31.21 apiece as investor caution lingered amid a generally bearish sentiment that pushed the company down to an all-time low last week.

Just recently, 13 analysts lowered their earnings expectations for CGNX as it navigates a challenging market environment.

TD Cowen, for its part, reduced its price target for CGNX by 21 percent to $30 from $38 previously while maintaining a “hold” rating. Meanwhile, DA Davidson lowered its price target to $35 from $39 while keeping a neutral rating.

UBS also adjusted its price target for the company to $56, down from its $58 projected earlier, but assigned a “buy” rating.

Goldman Sachs decreased its target to $35, maintaining a “sell” rating following a mixed earnings performance and a cautious outlook for the first quarter of the year.

Overall, CGNX ranks 10th on our list of Wednesday’s worst performers. While we acknowledge the potential of CGNX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CGNX but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.