COO - Cooper Companies: Business Growth Noted Valuations An Ask
2024-06-14 13:00:34 ET
Summary
- The healthcare sector offers average value compared to the S&P 500 on a price-value basis.
- Cooper Companies, Inc. presents with robust business fundamentals but investors are pricing the company to perfection.
- Q1 FY 2024 earnings show strong growth, but the stock appears stretched at 26x forward earnings in my view.
Investment Summary
Based on our recent top-down analysis, the healthcare sector offers around average value on a price/value-weighted basis when compared to the S&P 500 sector universe (Figure 1). The defensive nature of the sector has its utility in certain market conditions (like the 2022 inflation/rates market) but can be a drag on equity performance in trending markets....
Cooper Companies: Business Growth Noted, Valuations An Ask