September 19, 2024
Top 10 Stock Cooper Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Cooper Buy

360 METRICS	September 19, 2024
VALUE
VALUE	24
GROWTH
GROWTH	59
SAFETY
SAFETY	34
SENTIMENT
SENTIMENT	100
360° VIEW
360° VIEW	67

ANALYSIS: With an Obermatt 360° View of 67 (better than 67% compared with alternatives), overall professional sentiment and financial characteristics for the stock Cooper are above average. The 360° View is based on consolidating four consolidated indicators, with half of the metrics below and half above average for Cooper. The consolidated Growth Rank has a good rank of 59, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. This means that growth is higher than for 59% of competitors in the same industry. The consolidated Sentiment Rank also has a good rank of 100, which means that professional investors are more optimistic about the stock than for 100% of alternative investment opportunities. But the consolidated Value Rank has a less desirable rank of 24, which means that the share price of Cooper is on the higher side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 76% of alternative stocks in the same industry. Finally, the consolidated Safety Rank has a riskier rank of 34, which means that the company has a financing structure that is riskier than those of 66% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. ...read more

RECOMMENDATION: With a consolidated 360° View of 67, Cooper is better positioned than 67% of all alternative stock investment opportunities based on the Obermatt Method. Only half of the consolidated Obermatt Ranks exhibit excellent performance, so one needs to take a close look. Growth is above-average (Growth Rank of 59), and professional market sentiment is positive (Sentiment Rank of 100), but value and safety are below average. The Safety Rank is the least significant of the four consolidated ranks, because it only reflects financing practices. In the case of high growth, aggressive financing is a good thing. So the question is: How to assess below-average value against above-average growth and sentiment? Growth may be the strongest driver of the investment rationale in this case, which is reflected in institutional investors' opinions. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much do you sacrifice value for growth? You can use the following rule of thumb: If you take 100 minus the growth rank, you arrive at a possibly minimum level for the value rank. For example, if the growth rank is at 75, and the value rank is at 5, you should tread carefully. If the value rank is at 40, it still might be a good value if the growth rank is above 60. Sometimes market sentiment just extrapolates the past, but sometimes it reflects reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for Cooper very positive

SENTIMENT METRICS	September 19, 2024
ANALYST OPINION
ANALYST OPINION	50
OPINIONS CHANGE
OPINIONS CHANGE	100
PRO HOLDINGS
PRO HOLDINGS	86
MARKET PULSE
MARKET PULSE	92
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	100

ANALYSIS: With an Obermatt Sentiment Rank of 100 (better than 100% compared with alternatives) for 2024, overall professional sentiment and engagement for the stock Cooper is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all four indicators above average for Cooper. Analyst Opinions are at a rank of 50 (better than 50% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive with a rank of 100, which means that stock research experts are changing their opinions for the better and recommending investing in the company. They are getting more optimistic about stock investments in Cooper. The Professional Investors rank is 86, which means that currently, professional investors hold more stock in this company than in 86% of alternative investment opportunities. Pros tend to favor investing in this company. Finally, Market Pulse has a rank of 92 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 92% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 100 (more positive than 100% compared with investment alternatives), Cooper has a reputation among professional investors that is significantly higher than that of its competitors. Since all market sentiment indicators are positive, the professional community highly recommends investment in the company. Does this mean Cooper stocks are a safe investment? Far from it. Even professionals make mistakes. Especially in stock investing, there is a tendency to follow the leaders. Since trees don't grow to the heavens, such positive sentiment may also be interpreted as a danger sign. A lot of optimism can often be a sign of troubles to come, albeit unforeseen by most. ...read more

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Value Strategy: Cooper Stock Price Value low

VALUE METRICS	September 19, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	21
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	31
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	55
DIVIDEND YIELD
DIVIDEND YIELD	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	24

ANALYSIS: With an Obermatt Value Rank of 24 (worse than 76% compared with alternatives), Cooper shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators where three out of four are below average for Cooper. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 55, which means that the stock price is lower compared with invested capital than for 55% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 21 which means the stock price compared with what market professionals expect for future profits is higher than 79% of comparable companies, indicating a low value concerning Cooper's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 55 and for the dividend yields rank which is lower than for 99% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 24, is a sell recommendation based on Cooper's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Cooper, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. ...read more

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Growth Strategy: Cooper Growth Momentum good

GROWTH METRICS	September 19, 2024
REVENUE GROWTH
REVENUE GROWTH	43
PROFIT GROWTH
PROFIT GROWTH	76
CAPITAL GROWTH
CAPITAL GROWTH	6
STOCK RETURNS
STOCK RETURNS	77
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	59

ANALYSIS: With an Obermatt Growth Rank of 59 (better than 59% compared with alternatives), Cooper shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Cooper. Profit Growth has a rank of 76, which means that currently professionals expect the company to grow its profits more than 76% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 77 (above 77% of alternative investments). But Sales Growth has a below the median rank of 43, which means that, currently, professionals expect the company to grow less than 57% of its competitors, and Capital Growth also has a lower rank of 6. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 59, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Cooper. ...read more

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Safety Strategy: Cooper Debt Financing Safety below-average

SAFETY METRICS	September 19, 2024
LEVERAGE
LEVERAGE	55
REFINANCING
REFINANCING	12
LIQUIDITY
LIQUIDITY	67
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	34

ANALYSIS: With an Obermatt Safety Rank of 34 (better than 34% compared with alternatives), the company Cooper has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Cooper is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Cooper. Leverage is at a rank of 55, meaning the company has a below-average debt-to-equity ratio. It has less debt than 55% of its competitors. Liquidity is also good at a rank of 67, meaning the company generates more profit to service its debt than 67% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 12, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 88% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 34 (worse than 66% compared with alternatives), Cooper has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Cooper. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: Cooper Lowest Financial Performance

COMBINED PERFORMANCE	September 19, 2024
VALUE
VALUE	24
GROWTH
GROWTH	59
SAFETY
SAFETY	67
COMBINED
COMBINED	10

ANALYSIS: With an Obermatt Combined Rank of 10 (worse than 90% compared with investment alternatives), Cooper (Health Care Supplies, USA) shares have lower financial characteristics compared with similar stocks. Shares of Cooper are low in value (priced high) with a consolidated Value Rank of 24 (worse than 76% of alternatives), and are riskily financed (Safety Rank of 34, which means above-average debt burdens) but show above-average growth (Growth Rank of 59). ...read more

RECOMMENDATION: A Combined Rank of 10, is a sell recommendation based on Cooper's financial characteristics. As the company Cooper shows low value with an Obermatt Value Rank of 24 (76% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 59% of comparable companies (Obermatt Growth Rank is 59). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 34 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Cooper, even a low-value company (in terms of its key financial indicators) can be a good investment. ...read more

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