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CooperCompanies - AI Stock Analysis

Analysis generated May 29, 2024

CooperCompanies (NYSE: COO) is a diversified healthcare company operating through two business units: CooperVision and CooperSurgical. CooperVision specializes in soft contact lenses, providing a wide range of products to address needs such as astigmatism, presbyopia, and myopia. CooperSurgical focuses on women's health and offers products and services for hospitals, clinics, and healthcare professionals. The company's diverse product portfolio and market presence contribute to its competitive edge and solid footprint in the healthcare sector.

Fundamental Analysis

For the last quarter, CooperCompanies reported revenues of $902 million, reflecting a modest increase of 0.10% compared to the previous quarter. Year-over-year revenue growth stands at an impressive 8.33%, indicating positive momentum. However, the net income for the last quarter was $81 million, showing a decline of 3.91% from the previous quarter and a year-over-year decrease of 4.02%, which may be concerning to investors.

EBITDA for the last quarter was $200 million, which shows a quarterly increase of 11.72% and a year-over-year increase of 2.82%. This positive EBITDA growth underscores robust operational performance. Despite these fairly positive numbers, the current P/E ratio is 64.99, which may indicate a high valuation and a bearish outlook.

Furthermore, recent insider selling adds a bearish sentiment to the stock, possibly signaling a lack of confidence from those closest to the company's inner workings.

Technical Analysis

Today's stock price of CooperCompanies is $91.11, representing an increase of 1.36% from a month ago. However, the stock price has decreased by 1.01% compared to the same period last year, indicating some long-term concerns. The Simple Moving Average over the last 10 days (SMA10) is 94.74, which is lower than the previous SMA10 of 95.36, signaling a potential downward trend.

The Relative Strength Index (RSI) is at 40.4, suggesting a neutral condition. Yet, with the overall trend appearing bearish, these technical indicators may not offer strong support for a bullish outlook.

Alternative Data Analysis

Analyzing alternative data, CooperCompanies has posted 10 open positions, a significant decline of 93% in the last couple of months. This reduction could indicate measures to improve margins or cut costs, which might not be favorable for a growing company. Despite this, the business outlook has trended up by 22%, which is a positive signal.

Concerning customer acquisition, CooperCompanies' website received an estimated 10,000 visitors, but this number is down by 47% over the last couple of months, suggesting potential customer loss or reduced interest. Customer engagement metrics like this are crucial as they often reflect investor interest and future revenue potential.

Additionally, the AltIndex AI score, which incorporates various fundamental, technical, and alternative data points, gives CooperCompanies a score of 37, a clear sell signal.

Conclusion

CooperCompanies presents a mixed picture with several positive and negative indicators. While the revenue and EBITDA figures show encouraging growth, the decline in net income and high P/E ratio raise some red flags. Technically, the stock's bearish trend and negative longer-term price movement don't provide much confidence. Alternative data further substantiates the concerns with reduced job postings and customer engagement metrics, despite an improved business outlook.

Considering these factors, it would be prudent for investors to approach CooperCompanies cautiously. The mixed signals across fundamental, technical, and alternative data analyses suggest a cautious or bearish stance on the stock. Therefore, the recommendation based on the available data is to hold or sell CooperCompanies stock.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.