Trade-Ideas LLC identified

Cooper Companies

(

COO

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cooper Companies as such a stock due to the following factors:

  • COO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.8 million.
  • COO has traded 198,218 shares today.
  • COO traded in a range 207.4% of the normal price range with a price range of $5.74.
  • COO traded below its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on COO:

The Cooper Companies, Inc. operates as a medical device company worldwide. The stock currently has a dividend yield of 0%. COO has a PE ratio of 37. Currently there are 8 analysts that rate Cooper Companies a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Cooper Companies has been 550,400 shares per day over the past 30 days. Cooper Companies has a market cap of $7.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.45 and a short float of 5.6% with 4.76 days to cover. Shares are down 7.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cooper Companies as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth significantly trails the industry average of 37.8%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for COOPER COMPANIES INC is currently very high, coming in at 71.39%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.73% trails the industry average.
  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that COO's debt-to-equity ratio is low, the quick ratio, which is currently 0.56, displays a potential problem in covering short-term cash needs.
  • COOPER COMPANIES INC's earnings per share declined by 49.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, COOPER COMPANIES INC reported lower earnings of $5.52 versus $5.96 in the prior year. This year, the market expects an improvement in earnings ($7.55 versus $5.52).

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