Cognex: Quality Doesn't Come Cheap, With Momentum To Boot
Cognex Corporation is a top U.S. machine vision leader, now trading at 4-year highs and outperforming peers and the broader market. CGNX's strategic pivot—expanding its customer base, and launching the OneVision cloud platform, positions it for accelerated 9-11% revenue CAGR through FY28 and as a key facilitator of industrial AI in the Western markets. EBITDA margins have surged, with Q1 at 26.9% (+1,000 bps YoY), and guidance points to further margin expansion (potentially closer to 32%) and sustained >100% FCF conversion.