In the current market we are in, it is getting harder and harder to find stocks that are good values for the money. Most stocks are priced a full valuation or even more. And for those investors looking for a truly great deal, finding a bargain stock is even tougher.
But today I am going to share with you Cooper Companies, whose stock truly is a bargain.
Let’s look at this under the radar stock and see why it is one of the few bargains out there for investors.
Who Is Cooper Companies?
Just who is Cooper Companies (NYSE: COO)? They operate primarily as a contact lens supplier that sells direct to consumers. They also operate a surgical devices and instruments division as well.
As of this writing, the contact lens side of the company makes up the majority of the revenues, while the surgical side makes up a small percent.
For the contact lens business, Cooper owns 23% of the market share and is quickly growing its presence. Its specialty lens segment is rapidly growing, and two of their offerings are really taking off with consumers.
Multi-focals: These are lenses for people with both near and farsightedness
Digital Zone Optics: These are lenses for long wear in front of a computer screen
As of this writing, 61% of the company’s contact lens sales come from overseas. This is important to note at these countries, like China, India, and Brazil have a fast growing middle class. As more people enter the middle class, they have more income to spend on things like daily wear contact lenses.
As for the surgical side of the business, Cooper Companies sells surgical instruments and devices for women’s heath and fertility. In 2017 they bought Teva’s Paragard and now offer the only hormone free intra-uterine device approved in United States.
Why Cooper Companies Is A Bargain
Now that you know about what the company does, let’s look at why this stock is a bargain. To begin, the contact lens market is expected to grow 4-6% annually over the next decade. This allows Cooper Companies to earn steady, consistent revenues from the contact lens side of the business.