The Cooper Companies
COO
$59.49
-1.16%
The Cooper Companies, Inc. is a leading global eyecare company operating through two primary segments: CooperVision, a major player in contact lenses with a comprehensive portfolio including spherical, multifocal, and toric lenses, and CooperSurgical, which focuses on medical devices for reproductive care, fertility, and women's health. The company is a distinct market leader, controlling roughly one-fourth of the U.S. contact lens market and 17% of the U.S. IUD market with its hormone-free Paragard product. The current investor narrative is dominated by a significant stock price decline and concerns over growth and profitability, as recent financial results have shown mixed performance against a backdrop of broader market strength, leading to debates about its valuation and near-term recovery prospects.…
COO
The Cooper Companies
$59.49
Related headlines
COO 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on The Cooper Companies's 12-month outlook, with a consensus price target around $77.34 and implied upside of +30.0% versus the current price.
Average Target
$77.34
4 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
4
covering this stock
Price Range
$48 - $77
Analyst target range
Analyst coverage for COO is limited, with only 4 analysts providing estimates, indicating this is a mid-cap stock with less institutional scrutiny which can lead to higher volatility. The provided data includes revenue and EPS estimates but does not contain a consensus price target, Buy/Hold/Sell distribution, or a target price range, making a quantitative assessment of analyst sentiment impossible from the given inputs. Due to the absence of target price data, the implications are that investors must rely more heavily on their own fundamental and technical analysis, and the stock's price discovery may be less efficient, potentially contributing to the significant disconnect between its performance and the broader market recently.
Bulls vs Bears: COO Investment Factors
The evidence currently tilts bearish due to the stock's severe technical breakdown, revenue deceleration, and dramatic underperformance versus the broader market. The bull case rests almost entirely on the compelling forward P/E of 12.2x, which prices in a substantial earnings recovery that may not materialize. The single most important tension in the investment debate is whether the company can deliver on the analyst EPS estimate of $5.96 to justify its forward multiple, or if the recent operational weakness and growth concerns will persist, leading to further multiple compression and price declines. The deep oversold condition provides a potential value opportunity, but without a clear catalyst for operational improvement, the stock risks remaining a 'falling knife.'
Bullish
- Attractive Forward Valuation: The stock's forward P/E ratio of 12.2x is compelling, trading at a significant discount to its trailing P/E of 37.3x. This implies the market is pricing in a sharp earnings recovery, with analyst consensus EPS of $5.96 for the coming period, suggesting potential for multiple expansion if targets are met.
- Strong Free Cash Flow Generation: The company is a robust cash generator, with TTM free cash flow of $491.2 million and operating cash flow of $260.9 million in the latest quarter. This provides ample liquidity to fund operations and growth internally, supporting a healthy balance sheet with a debt-to-equity ratio of 0.34.
- Solid Profitability & Market Leadership: COO maintains strong gross margins of 67.88% in Q1 2026 and an operating margin of 20.78%. The company is a market leader, controlling roughly 25% of the U.S. contact lens market and 17% of the U.S. IUD market with its hormone-free Paragard, providing a stable revenue base.
- Deeply Oversold Technical Condition: The stock is trading at $61.21, only 7.5% above its 52-week low of $58.89 and 31.9% below its high of $89.83. This extreme oversold condition, with a 1-year price decline of -23.45% against a +28.21% S&P 500 gain, suggests a potential technical bounce if sentiment improves.
Bearish
- Severe Price & Momentum Deterioration: COO has dramatically underperformed the market, down 26.84% over the past three months while the S&P 500 gained 10.28%. The stock is in a pronounced downtrend, having fallen 21.46% over six months, indicating persistent selling pressure and negative investor sentiment.
- Revenue Growth Deceleration & Volatility: While Q1 2026 revenue grew 6.16% YoY, it declined sequentially from $1.065 billion to $1.024 billion. This deceleration, combined with segment weakness in CooperSurgical ($329M), raises concerns about the company's growth trajectory and execution.
- Elevated Trailing Valuation: The trailing P/E of 37.3x is high relative to sector averages and indicates the stock was previously priced for premium growth that has not materialized. This elevated multiple creates vulnerability to further compression if earnings disappoint.
- Limited Analyst Coverage & Sentiment: With only 4 analysts providing estimates, COO has limited institutional scrutiny, which can lead to higher volatility and less efficient price discovery. The absence of consensus price targets in the data makes it difficult to gauge professional sentiment and upside potential.
COO Technical Analysis
The stock is in a pronounced and sustained downtrend, evidenced by a 1-year price change of -23.45% and a 6-month decline of -21.46%. With a current price of $61.21, it is trading near the bottom of its 52-week range, positioned at just 7.5% above its 52-week low of $58.89 and 31.9% below its high of $89.83, indicating the stock is deeply oversold and may represent a value opportunity, though it risks being a 'falling knife' without a clear catalyst for reversal. Recent momentum shows severe weakness, with the stock down 21.19% over the past month and 26.84% over the past three months, significantly underperforming the S&P 500, which gained 6.31% and 10.28% over the same periods, respectively; this stark divergence from the broader market's strength signals intense, company-specific selling pressure rather than a general market pullback. Key technical support is firmly established at the 52-week low of $58.89, while resistance lies at the 52-week high of $89.83; a breakdown below $58.89 could trigger a new leg down, while a recovery would need to breach multiple overhead resistance levels, and with a beta of 0.894, the stock has been less volatile than the market, but its recent price action suggests idiosyncratic risk is the dominant driver.
Beta
0.89
0.89x market volatility
Max Drawdown
-30.1%
Largest decline past year
52-Week Range
$59-$90
Price range past year
Annual Return
-11.2%
Cumulative gain past year
| Period | COO Return | S&P 500 |
|---|---|---|
| 1m | -4.6% | +5.4% |
| 3m | -27.4% | +10.9% |
| 6m | -22.8% | +11.0% |
| 1y | -11.2% | +28.1% |
| ytd | -26.7% | +11.4% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
COO Fundamental Analysis
Revenue growth has been modest but shows signs of deceleration; the most recent quarterly revenue (Q1 2026) was $1.024 billion, representing a year-over-year growth of 6.16%, but this follows a sequential decline from the prior quarter's $1.065 billion, and segment data shows the CooperVision segment ($695.1 million) significantly outpacing the CooperSurgical segment ($329 million) in the period. The company remains profitable, with Q1 2026 net income of $130.8 million and a gross margin of 67.88%, which improved from the previous quarter's 56.42%; however, operating income of $212.8 million resulted in an operating margin of 20.78%, indicating solid core profitability despite recent volatility in bottom-line results. The balance sheet is healthy with a current ratio of 1.89 and a moderate debt-to-equity ratio of 0.34, while the company generated substantial free cash flow of $491.2 million (TTM) and an operating cash flow of $260.9 million in the latest quarter, providing ample liquidity to fund operations and growth internally without reliance on excessive external financing.
Quarterly Revenue
$1.0B
2026-01
Revenue YoY Growth
+0.06%
YoY Comparison
Gross Margin
+0.67%
Latest Quarter
Free Cash Flow
$491200000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is COO Overvalued?
Given the company's positive net income, the primary valuation metric selected is the Price-to-Earnings (PE) ratio. The trailing PE ratio is elevated at 37.3x, while the forward PE is significantly lower at 12.2x; this substantial gap implies the market expects a sharp recovery in earnings, as reflected in the analyst consensus EPS estimate of $5.96 for the coming period. Compared to sector averages, the stock's trailing PE of 37.3x is at a premium, though specific industry average data is not available in the provided set; the forward PE of 12.2x, however, appears more reasonable and suggests the current price may be discounting near-term challenges if the earnings recovery materializes. Historically, the stock's own PE ratio has fluctuated widely; the current trailing PE of 37.3x is above the recent quarterly historical range observed in the data (which has spanned from the 30s to over 100x), but the forward-looking multiple near 12x is at the lower end of its historical spectrum, indicating the market may be pricing the stock conservatively relative to its own history if forward estimates are met.
PE
37.3x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 8x~119x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.8x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: COO faces risks from earnings volatility and potential growth deceleration. While Q1 2026 net income of $130.8M showed recovery, it followed a weak Q4 of $84.6M, indicating inconsistency. The sequential revenue decline from $1.065B to $1.024B suggests growth may be stalling. Although gross margins improved to 67.88%, they have been volatile, dropping to 56.42% in the prior quarter, exposing the company to potential cost inflation or pricing pressure. The elevated trailing P/E of 37.3x makes the stock vulnerable to significant multiple compression if forward EPS estimates of $5.96 are not achieved.
Market & Competitive Risks: The stock's valuation presents a key market risk. Trading at a forward P/E of 12.2x, it appears reasonable, but the high trailing multiple suggests the market was previously pricing in stronger growth. With a beta of 0.894, the stock should theoretically be less volatile than the market, yet its 26.84% decline over three months amid a strong market (+10.28% S&P 500) indicates intense, company-specific selling pressure. This divergence suggests the market is reassessing COO's growth profile and competitive position. As a mid-cap with limited analyst coverage (only 4 analysts), it also faces liquidity and sentiment risks that can exacerbate price swings.
Worst-Case Scenario: The worst-case scenario involves a failure to meet forward earnings expectations coupled with continued revenue deceleration, triggering a downward spiral of analyst estimate cuts and multiple compression. This could be exacerbated by a broader market downturn or increased competitive pressures in its core contact lens and women's health markets. In this adverse scenario, the stock could re-test and break below its 52-week low of $58.89, potentially falling towards levels implied by a high-single-digit P/E on lowered earnings. A realistic downside from the current $61.21 could be -20% to -30%, targeting a range of $43 to $49, aligning with the stock's maximum drawdown of -30.15% observed in recent data.