Here's Why Cooper Companies Stock Valuation May Be Deceiving

Cooper Companies is slated to report earnings on Thursday, June 3

facebook twitter linkedin


The Cooper Companies, Inc. (NYSE:COO) is a global medical device company that operates through two business units, CooperVision and CooperSurgical. CooperVision develops a wide range of products for contact lens wearers and vision care in general. CooperSurgical offers a portfolio of products and services focused on medical devices and fertility & genomics. Cooper Companies has a workforce of more than 12,000 with products sold in over 100 countries.

This afternoon, COO was last seen down 0.8% at $390.99. Shares of Cooper Companies stock are up 10% year-to-date, but are down about 5% from its record high of $415.96. Cooper Companies also provides a forward dividend of $0.06 and a dividend yield of 0.02%.

Furthermore, Cooper Companies is scheduled to release its second-quarter of 2021 financial results this week on Thursday, June 3. Following the release, COO will also host a conference call to discuss the results and corporate developments. Cooper Companies has beat earnings expectations on three of its last four earnings reports with three beats in a row as investors watch for Q2 earnings to be released.

For the second quarter of 2020, COO missed analyst estimates by a margin of $0.84 and reported an earnings per share (EPS) of $1.51. For the third quarter of 2020, Cooper Companies' EPS increased to $2.28 and beat expectations by a margin of $0.76. For the fourth quarter of 2020, COO reported another increase in earnings, rising to $3.16 per share and beating estimates by a margin of $0.07. For the first quarter of 2021, Cooper Companies posted an EPS of $3.17 and beat expectations by a margin of $0.39.

From a fundamental perspective, Cooper Companies stock looks like a great value play considering the stock’s current price-earnings ratio of 8.67. However, COO has a forward price-earnings ratio of 31.85, which is a huge difference comparatively. Analysts are looking hopeful, with 60% of the 10 in coverage sporting a "strong buy" recommendation. Overall, COO has potential to be a long-term winner, but Cooper Companies stock is far from being the best option on the market from a risk-reward perspective.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners