U.S. Markets closed

Cooper Companies Shows Strong Relative Earnings Compared to Peers

Gabriel Kane

US Equity Market on September 3: Infoblox and Esterline Look Strong

(Continued from Prior Part)

Cooper Companies compared to competitors

Cooper Companies’ 3Q15 EPS (earnings per share) is $4.91, which is higher when compared with Hologic (HOLX) at $0.47, Boston Scientific Corporation (BSX) at $-0.12, and Novartis (NVS) at $3.95. The gross margin of Cooper Companies is 61.59%, which is quite close to its competitors Hologic (HOLX) at 54.58%, Johnson & Johnson (JNJ) at 69.88%, and STAAR Surgical Company (STAA) at 66.25% in 3Q15.

ETFs that invest in Cooper Companies

The PowerShares DWA Healthcare Momentum Portfolio (PTH) invests 4.54% of its holdings in Cooper. The ETF tracks an index of US healthcare firms selected and weighted by price momentum.

The SPDR S&P Health Care Equipment ETF (XHE) invests 1.88% of its holdings in Cooper. The ETF tracks an equal-weighted index of US healthcare equipment and supplies companies.

The First Trust Health Care AlphaDEX ETF (FXH) invests 1.39% of its holdings in Cooper. The ETF tracks an index of US healthcare companies selected and weighted based on various growth and value criteria.

Comparison of Cooper with healthcare ETFs

Cooper Companies (COO) has fallen down to -0.45% for year-to-date price movement, but many ETFs that have holdings in Cooper have performed quite well. The PowerShares DWA Healthcare Momentum Portfolio (PTH) was at 11.07%, the SPDR S&P Health Care Equipment ETF (XHE) was at 5.92%, and the First Trust Health Care AlphaDEX ETF (FXH) was at 5.26%. Cooper Companies is currently trading at a 32.85x PE (price-to-earnings) ratio.

Thus, on the basis of year-to-date price movement, these ETFs have performed better than Cooper Companies.

Continue to Next Part

Browse this series on Market Realist: