Value Play Or Value Trap? Encana Corporation (ECA), Cognex Corporation (CGNX)

22 analysts out of 32 Wall Street brokerage firms rate Encana Corporation (NYSE:ECA) as a Buy, while 0 see it as a Sell. The rest 10 describe it as a Hold. ECA stock traded higher to an intra-day high of $4.95. At one point in session, its potential discontinued and the price was down to lows at $4.815. Analysts have set ECA’s consensus price at $10.61, effectively giving it a 114.78% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $12 (up 142.91% from current price levels). ECA has a 8.7% ROE, higher than the 0.74% average for the industry. The average ROE for the sector is 16.3%.

It is expected that in Jun 2019 quarter ECA will have an EPS of $0.2, suggesting a -4.76% growth. For Sep 2019 is projected at $0.24. It means that there could be a 41.18% growth in the quarter. Yearly earnings are expected to rise by -8.14% to about $0.79. As for the coming year, growth will be about 15.19%, lifting earnings to $0.91. RSI after the last trading period was 28.95. ECA recorded a change of -3.7% over the past week and returned -31.77% over the last three months while the ECA stock’s monthly performance revealed a shift in price of -26.16%. The year to date (YTD) performance stands at -14.53%, and the bi-yearly performance specified an activity trend of -19.94% while the shares have moved -61.74% for the past 12 months.

Encana Corporation (ECA) currently trades at $4.94, which is higher by 3.56% its previous price. It has a total of 1.47 billion outstanding shares, with an ATR of around 0.25. The company’s stock volume dropped to 21.25 million, worse than 25.34 million that represents its 50-day average. A 5-day decrease of about -3.7% in its price means ECA is now -14.53% lower on year-to-date. The shares have surrendered $43623.06 since its $14.28 52-week high price recorded on 3rd of August 2018. Overall, it has seen a growth rate of -61.74 over the last 12 months. The current price per share is $0.180000000000001 above the 52 week low of $4.76 set on 12th of June 2019.

Encana Corporation (NYSE:ECA)’s EPS was $0.14 as reported for the March quarter. In comparison, the same quarter a year ago had an EPS of $0.16. That means that its growth in general now stands at -13%. Therefore, a prediction of $0.08 given by the analysts brought a positive surprise of 75%. ECA March quarter revenue was $1.24 billion, compared to $1.31 billion recorded in same quarter last year, giving it a -6% growth rate. The company’s $-0.07 billion revenue decline that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

Cognex Corporation (NASDAQ:CGNX) shares appreciated 0.6% over the last trading period, taking overall 5-day performance up to 4.19%. CGNX’s price now at $44.97 is weaker than the 50-day average of $48.34. Getting the trading period increased to 200 days, the stock price was seen at $47.49 on average. The general public currently hold control of a total of 163.46 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 167.01 million. The company’s management holds a total of 0.2%, while institutional investors hold about 96.1% of the remaining shares. CGNX share price finished last trade 3.96% above its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -5.36%, while closing the session with -7.29% distance from 50 day simple moving average.

Cognex Corporation (CGNX) shares were last observed trading -24.01% down since September 25, 2018 when the peak of $59.18 was hit. Last month’s price growth of -0.4% puts CGNX performance for the year now at 16.29%. Consequently, the shares price is trending higher by 28.93%, a 52-week worst price since Dec. 26, 2018. However, it is regaining value with 10.41% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $44 and $44.49. The immediate resistance area is now $45.29 Williams’s %R (14) for CGNX moved to 28.4 while the stochastic %K points at 72.75.

CGNX’s beta is 2.01; meaning investors could reap higher returns, although it also poses higher risks. The company allocated $1.28 per share from its yearly profit to its outstanding shares. Its last reported revenue is $173.48 million, which was 2% versus $169.57 million in the corresponding quarter last year. The EPS for Mar 19 quarter came in at $0.19 compared to $0.21 in the year-ago quarter and had represented -10% year-over-year earnings per share growth. CGNX’s ROA is 16.4%, higher than the 7.39% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 4.96%.

Estimated quarterly earnings for Cognex Corporation (NASDAQ:CGNX) are around $0.24 per share in three months through June with $0.35 also the estimate for September quarter of the fiscal year. It means the growth is estimated at -25% and -22.22%, respectively. Analysts estimate full-year growth to be -17.74%, the target being $1.02 a share. The upcoming year will see an increase in growth by percentage to 25.49%, more likely to see it hit the $1.28 per share. The firm’s current profit margin over the past 12 months is 26.6%. CGNX ranks higher in comparison to an average of 13.58% for industry peers; while the average for the sector is -10.43%.