Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Cognex Corporation (NASDAQ: CGNX ) fell more than 16% during Friday's intraday trading, then recovered to close down around 8% after the company released solid fourth-quarter results, but followed with disappointing forward guidance.
So what: Quarterly sales rose 16% year over year to $95.7 million, which translated to 21% growth in net income per share, to $0.23. Analysts, on average, were only expecting earnings of $0.22 per share on sales of $94.67 million.
However, Cognex anticipates current quarter revenue between $88 million and $91 million, the midpoint of which sits well below expectations for Q1 sales of $91.43 million.
Now what: The top-line guidance miss wasn't that bad, which explains why the stock partially recovered into the close. However, Cognex certainly doesn't look cheap -- even after today's fall -- trading around nine times last year's sales, and 29 times this year's expected earnings. For now, even though Cognex certainly isn't a broken company, I still prefer waiting on the sidelines for a more attractive entry point going forward.
You can put your money to work in these nine stocks instead
But if not in Cognex, then where should you look to invest?
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks, as a group, handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks, in particular, are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.