Coherent Stock Declines 24% in a Month: Is This a Buying Opportunity?

COHR shares dropped 24% over the past month despite a 155% gain over the prior twelve months, according to Zacks Investment Research. The pullback follows a steep rally but leaves the stock trading at what Zacks calls a premium valuation.

The company's datacenter segment posted 58.6% year-over-year revenue growth, driven by AI-focused product demand. Margins are expanding, and COHR has announced capacity expansion plans to support its AI and datacenter portfolio. Zacks maintains a Buy rating on the stock.

Key risks include exposure to hyperscaler spending cycles—which can shift sharply with capital allocation priorities—and customer concentration, which amplifies volatility if a major buyer cuts orders.