Here's Why Cognex Stock Slumped in August (and Why It's a Buying Opportunity)

Shares in machine vision technology company Cognex Corporation (NASDAQ: CGNX) fell by 18.6% in August, according to data provided by S&P Global Market Intelligence. There's no debate about the catalyst for the move. Cognex's second-quarter earnings report disappointed the market on the last day of July, and the stock declined heavily on the first day of August.Machine vision technology has an excellent future ahead. After all, it helps automate complex processes, ensuring quality control while monitoring and guiding manufacturing in industries like automotives, semiconductors, and consumer electronics. Meanwhile, in logistics, it helps automate e-commerce shipping.Its end markets are attractive over the long term, but many of them are weak in the near term, and that's what's hurting Cognex right now. For example, relatively high interest rates are curtailing automotive sales, and expectations for sales, production, and investment have been pared back this year. CEO Rob Willett noted on the earnings call that "macro sentiment has now declined again, and we have seen additional delays and reductions in EV projects."Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool