Cooper Companies (COO) Hits 52-Week High on Solid Prospects
Share price of Cooper Companies, Inc. COO scaled a new 52-week high of $299 on Mar 6, closing nominally lower at $282.76. The company has gained 8.8% over the last six months, better than the industry’s 11% decline. Cooper Companies also fared better than the S&P 500’s decline of 3.4%.
The stock has a market cap of $13.95 billion.
Further, Cooper Companies’ estimate revision trend for the current year is favorable. In the past 30 days, two estimates moved up while none moved down. Consequently, estimates were up from $11.54 per share to $11.56.
The company has a trailing fourth-quarter average positive earnings surprise of 2.54%. Its positive long-term growth of 11% holds promise as well.
The company’s five-year historical growth rate is favorable at 13.3% as compared with the industry’s 10.1% and the S&P 500’s 4.4%.
Cooper Companies currently has a Zacks Rank #3 (Hold). The company has an impressive Growth Style Score of B. Our Growth Style Score highlights all the vital metrics of a company’s financials to obtain a clearer picture of the quality and sustainability of its growth. Our research shows that stocks with Style Scores of A or B when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 offer the best investment opportunities.
Growth Drivers
The market looks extremely upbeat about Cooper Companies, which has just released strong first-quarter fiscal 2019 results. The company demonstrated solid top-line performance on rollout of its PARAGARD products under the CooperSurgical (CSI) segment. Within CSI, fertility, sub-segment and surgical products have been showing strong sales momentum of late and we believe this will continue through the next quarter.
Within its CooperVision (CVI) segment, growth has been driven by solid revenues from the company’s daily silicone hydrogel franchises viz. Clariti and MyDay. Products like Biofinity, Biofinity Energys and Avaira Vitality have been registering robust sales. Within CVI, the company has been investing in R&D, infrastructure and distribution which should help Cooper Companies boost profits.
Further, the market seems to be upbeat about two major investments made by the company in January. In the month, CooperSurgical acquired Incisive Surgical which sells unique absorbable skin staple — INSORB. Around that time, CooperVision acquired Blanchard contact lenses, thereby strengthening its specialty segment. Both of these acquisitions are expected to fuel growth for Cooper Companies.
All these factors have lifted the stock to a 52-week high.
Key Picks
A few top-ranked stocks in the broader medical space are ABIOMED, Inc., ABMD, Penumbra, Inc., PEN and Masimo, Inc. MASI. Notably, each of these stocks currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ABIOMED’s long-term earnings growth rate is expected to be 27.67%.
Penumbra’s long-term earnings growth rate is projected at 20.93%.
Masimo’s long-term earnings are projected to grow 15.60%.
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