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The Cooper Companies at 52-Week High on Strong Portfolio


Share price of The Cooper Companies COO rallied to a new 52-week high of $190.75 on Sep 15, eventually closing a tad lower at $189.90. This represents a strong year-to-date return of approximately 41.5%, better than the S&P 500’s 5% over the same time frame.

Currently, Cooper Companies carries a Zacks Rank #3 (Hold). The stock has a market cap of $9.04 billion and long-term expected earnings growth rate of 11.8%.

Growth Catalysts

A solid product pipeline is a major positive for the company in our view. Especially, the launch of Avaira Vitality in the U.S. buoys optimism as the product is expected to drive margins over the long haul. Additionally, the rollout of MyDay in Japan is a noteworthy development as it is expected to fortify the company’s market position.

Meanwhile, we note that each and every business segment of the company contributed toward the current growth trend. The CooperVision segment (CVI) of the company posted a stellar performance in the last-reported third quarter of 2016, raking in revenues of $409.9 million (up 6% at constant currency). Particularly, the Toric, Multifocal and Sphere lenses deserve special mention here. The CooperSurgical (CSI) unit of the company performed exceptionally well as well, enhancing the growth trajectory.

COOPER COS Price and Consensus

COOPER COS Price and Consensus | COOPER COS Quote

In this regard, Cooper Companies reported an impressive third quarter of 2016 with revenues of $514.7 million improving 6% year over year at constant currency. Notably, adjusted earnings of $2.30 per share beat the Zacks Consensus Estimate by 2 cents, up 16.8% on a year-over-year basis.

Estimate Revisions

The company’s current year estimate revision trend is also looking quite promising with 8 estimates moving higher over the past two months, compared to one downward revision. The consensus estimate trend has also seen a boost for this time frame, increasing by 3 cents to $8.41 per share.

Key Picks

Better-ranked stocks in the broad medical sector include Halyard Health Inc HYH, INC Research Holdings Inc. INCR and Lonza Group Limited LZAGY. Notably, all the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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