COO Stock Analysis — CooperCompanies
Sector: Healthcare
AI Verdict
CooperCompanies trades at a steep discount to the sector on forward earnings, but you’re betting on a massive profit rebound that must actually show up to justify the optimism.
Competitive Moat
CooperCompanies specializes in contact lenses and fertility medical devices, benefiting from high switching costs for eye care professionals and regulatory barriers in medical device approvals. Its established relationships with optometrists and proprietary lens technologies make it difficult for new entrants to displace.
Summary
A huge jump in forward EPS expectations is compressing the P/E from 56.9x trailing to just 12.6x forward, putting it in value territory if the growth materializes.
Where It Stands
Despite a 1-year return of -6.90% and an RSI of 73.0 signaling overbought conditions, the stock trades at 12.6x next year's earnings versus a healthcare median of 22x, reflecting a sharp reset in expectations.
Key Metrics
- RSI: 73 — Overbought
- Trailing P/E: 56.9x
- Forward P/E: 12.6x
- PEG Ratio: 0.16
- Earnings Growth: +3.5%
- Revenue Growth: +0.1%
- Market Cap: $13.1B
- Dividend Yield: 0.00%
- 1-Year Return: -6.90%
- 52-Week High: $89.83
- 52-Week Low: $58.89
Analyst Consensus
13 Buy · 10 Hold · 1 Sell (24 analysts)
Bull Case
Forward EPS is expected to surge by 350.7%, making the current forward P/E of 12.6x look cheap for the growth on offer if those numbers are hit.
Bear Case
With an RSI at 73.0, the stock is overbought and vulnerable to a pullback, and if the P/E reverts to the sector median of 22x without the forecasted earnings, downside could be substantial.
Catalyst to Watch
Next quarterly earnings will show whether the massive EPS growth forecast is credible or a mirage.