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Should You Buy Cooper Companies Inc (COO) Stock Tuesday?

Tuesday, March 26, 2024 03:58 PM | InvestorsObserver Analysts

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Should You Buy Cooper Companies Inc (COO) Stock Tuesday?

Cooper Companies Inc (COO) receives a weak valuation ranking of 35 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. COO has a better value than 35% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 35
COO gets a 35 Valuation Rank today. Find out what this means to you and get the rest of the rankings on COO!

Metrics Analysis

COO has a trailing twelve month Price to Earnings (PE) ratio of 68.64 which places it above the histroical average of roughly 15. COO is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. COO's trailing-12-month earnings per share (EPS) of 5.91 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
COO has a 12 month forward PE to Growth (PEG) ratio of 2.57. Markets are overvaluing COO in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 5.91's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

COO' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. COO's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on Cooper Companies Inc (COO) stock.

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