<div id="readability-page-1"><ul><li>Analysts Are Bullish on These 3 Laser Tech Companies</li></ul><p>Cognex <span>NASDAQ: CGNX<span></span></span> is seeing the early benefits of a leadership transition, an improving market backdrop and a sharper focus on operating efficiency, CFO Dennis Fehr said during a TD Cowen investor event hosted by analyst Joe Giordano.</p><p>Fehr said the machine vision company has undergone “transformational change” over the past 12 to 24 months, including a new leadership team and a different management philosophy around the company’s financial framework and operating model. He said the market environment also began to improve around November of last year, shifting from a headwind to a tailwind for Cognex’s growth strategy.  </p><ul><li>3 Underrated Robotics Stocks Poised for Major Growth</li></ul><p>“The results or early results of these two things coming together is strong EPS growth,” Fehr said, adding that Cognex showed good growth in 2025 and is “on a good path for 2026.” He said management sees more runway to drive earnings-per-share growth over the next 18 months or longer.  </p><h2>Logistics Growth Enters a Digestion Phase</h2>  <p>Fehr said logistics has been a major source of strength for Cognex, with nine consecutive quarters of double-digit growth. He attributed the gains to technologies introduced over the past three to four years, including machine vision tunnels and enhanced barcode reading.  </p><ul><li>5 Computer Vision Stocks with a Clear Path to Growth</li></ul><p>However, Fehr said the broader logistics market has started to digest recent growth, particularly outside of the largest customers. He said large-scale customers, including Amazon, are still growing, but the overall market may spend another six to 18 months absorbing prior investments.  </p><p>Longer term, Fehr said Cognex continues to see significant opportunities in logistics because automation and tracking-and-tracing capabilities remain underpenetrated. He highlighted the company’s SLX product family, launched at the end of last year, as a way to bring more machine vision into logistics applications beyond traditional barcode reading.  </p><p>Fehr said those applications include jam detection on conveyor belts, identifying parcels that are stuck together and detecting hazardous goods inside packages.  </p><h2>Consumer Electronics Cycle Looks Broader</h2>  <p>In consumer electronics, Fehr said the current cycle “feels very different” from prior cycles that were driven largely by one major customer or a single technology transition. He contrasted the current environment with 2017, when growth was tied to a display technology change, and 2021, when growth was also concentrated with one large customer.  </p><p>This time, Fehr said growth is broader across geographies, customers and devices. He cited smartphones, tablets, desktop PCs, laptops and emerging “AI gadgets” as areas where machine vision is being used for inspection. He also pointed to the data center supply chain as a small but rapidly growing market for Cognex, including connector inspection and rack assembly inspection.  </p><p>Fehr said the breadth of demand makes the current consumer electronics cycle appear more durable than past cycles, though he said it remains to be seen whether it becomes a longer cycle.  </p><h2>Semiconductor Exposure and AI Tools</h2>  <p>Fehr also said Cognex remains deeply entrenched in the semiconductor market. He noted that roughly 20 years ago, semiconductor-related business represented about 70% of Cognex’s business. Today, he said the company’s machine vision products are used inside machines for wafer production and chip processing.  </p><p>Because Cognex products are often highly technical and designed into customer equipment, Fehr said customers have little incentive to switch suppliers due to the cost and re-engineering involved. He described the current semiconductor environment as a “capacity-driven cycle” and said it feels like a “semi super cycle.”  </p><p>On artificial intelligence, Fehr said Cognex adopted AI early through an acquisition in late 2017 or early 2018 that became the foundation for its AI vision team, models and proprietary datasets. He said Cognex has launched AI-enabled edge products since 2022 and is combining edge tools and deep learning software through its OneVision offering, which he described as a virtual training room for device-based vision applications.  </p><p>Fehr said AI is more of an opportunity than a risk for Cognex because machine vision models must run on devices with limited compute power while detecting tiny, highly specific defects at high speed. He said newly launched AI vision tools can solve tasks that could not previously be solved without AI.  </p><h2>Margin Focus Shifts to OpEx and Productivity</h2>  <p>Margins were a major focus of the discussion. Fehr said Cognex historically centered its financial model on top-line growth and high gross margins. While that created leverage in growth periods, he said it also meant the company paid less attention to its largest cost block: operating expenses.  </p><p>Fehr said the leadership team has shifted the focus away from gross margin as the central margin metric and toward OpEx efficiency. Cognex has discussed $35 million to $40 million of net OpEx reductions for the year, and Fehr said the company is about 80% through executing those actions. He said more of the impact should appear mostly in the third quarter, with the remaining actions expected over the next few months.  </p><p>Looking ahead, Fehr said the focus will move from right-sizing in 2025 and 2026 to productivity in 2027. He said the company’s goal is to keep OpEx growth significantly below top-line growth to drive additional leverage.  </p><p>Fehr also said Cognex is changing its pricing approach. Historically, he said pricing was more reactive, such as passing through inflation in 2021 and 2022. Now, the company is taking a multi-year view and using better data to help sales teams make pricing decisions by customer type and region. Fehr said the objective is to turn pricing from a headwind, particularly in 2024, into a tailwind over the next several years.  </p><h2>Sales Transformation and Capital Allocation</h2>  <p>Fehr said Cognex’s previous “Emerging Customer” initiative was designed to broaden the customer base beyond a few large accounts, but relied heavily on hiring more salespeople and creating a separate organization. The company has since moved to a broader sales force transformation focused on data, process, sales district analysis, marketing automation and lead generation.  </p><p>He said Cognex acquired 9,000 new customers last year, compared with 3,000 the year before, and has seen broad-based growth in electronics and packaging. Fehr said the company still has significant opportunity to improve sales productivity.  </p><p>On capital allocation, Fehr said Cognex remains focused on a balance between M&amp;A and opportunistic share repurchases. He said the company deployed almost $100 million in buybacks in the first quarter at share prices in the low $40s. On M&amp;A, Fehr said Cognex is more flexible than in the past, with greater openness to different deal sizes and a stronger focus on bottom-line profitability rather than only smaller technology bolt-ons with high gross margins.  </p><p>Still, Fehr described M&amp;A as “the icing on the cake,” saying Cognex has substantial organic growth opportunities and additional margin expansion potential.</p><h2>About Cognex <span>NASDAQ: CGNX<span></span></span></h2><p>Cognex Corporation is a leading provider of machine vision systems, software, sensors and industrial barcode readers used to automate manufacturing, logistics and distribution processes. The company designs and develops vision-based products that help manufacturers and logistics operators inspect, identify and guide parts, assemblies and packaged goods in real time. Its solutions are applied in a broad range of industries, including automotive, electronics, semiconductor, pharmaceutical, food and beverage, and general manufacturing.  </p><p>The company's product portfolio includes stand-alone vision systems, vision sensors and deep learning-based software platforms that enable automated inspection, quality control and traceability.</p><p><em>This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.</em></p><h2>Should You Invest $1,000 in Cognex Right Now?</h2><p>Before you consider Cognex, you'll want to hear this.</p><p>MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cognex wasn't on the list.</p><p>While Cognex currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.</p><p>View The Five Stocks Here</p>                  </div>

CGNX

SOXL

BOTZ

SOXX

ROBO

ARKQ

<p>Cognex (NASDAQ: CGNX) is experiencing early benefits from a leadership transition and improved market conditions, according to CFO Dennis Fehr. The company has seen strong EPS growth and anticipates continued earnings growth over the next 18 months. Fehr highlighted logistics as a key growth area, despite a market digestion phase. The consumer electronics cycle appears broader and more durable, with machine vision applications expanding. Cognex remains entrenched in the semiconductor market and is leveraging AI for enhanced product offerings.</p>

Cognex Says Turnaround Is Gaining Steam as AI Vision and Cost Cuts Boost EPS