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Here's Why You Should Invest in Cooper Companies Stock Now

Zacks Equity Research

The Cooper Companies, Inc. COO is well poised for growth on the back of strong segmental performances, increasing penetration in international markets and solid gains from core CooperVision (CVI) unit.

The stock carries a Zacks Rank #2 (Buy).

Price Performance

Shares of Cooper Companies have gained 30.3%, outperforming the industry’s growth of 16.9% on a year-to-date basis. Moreover, the stock outpaced the S&P 500 Index’s rally of 15.6%.

What’s Favoring the Stock?

Driven by a highly exclusive product portfolio featuring the likes of Biofinity and Clariti, Cooper Companies has been able to maintain its leading position in specialty lenses markets. Notably, the company’s flagship silicone hydrogel lenses are anticipated to generate strong sales in the near term. We expect the company’s MyDay and Clariti lenses to strengthen and bolster growth prospects further.

Moreover, the company’s CooperVision segment has been garnering success globally and fortifying presence through developments such as Eye care professional (ECP) programs in Australia and New Zealand.

This apart, the aforementioned segment remains focused on multiple initiatives that will increase the adoption of its innovative MiSight 1 day product across major world markets.

For fiscal 2019, management expects revenues at CSI to grow 3-6% at pro forma.

With respect to CooperSurgical (CSI), its expanding product portfolio has been benefiting the segment consistently. Recently, the company inked a deal to purchase the flagship contraception platform of Israel-based Teva Pharmaceutical Industries (TEVA) — PARAGARD Intrauterine Device. The transaction is anticipated to bolster Cooper Companies’ CooperSurgical (CSI) business in the global contraceptive device market.

Notably, revenues from CSI are anticipated within the range of $663 million to $681 million, up from the previous guidance of $660-$680 million.

Strategic acquisitions play an important role with respect to company’s long-term growth prospects. CSI’s acquisition of Incisive Surgical and CVI’s buyout of Blanchard contact lenses are expected to prove beneficial for the respective segments, which in turn will fuel growth.

Which Way Are Estimates Headed?

For 2019, the Zacks Consensus Estimate for revenues is pegged at $2.65 billion, indicating an improvement of 4.9% from the year-ago period. The same for earnings stands at $12.24, suggesting growth of 6.4% from the year-reported figure.

Other Stocks to Consider

Some other top-ranked stocks from the broader medical space are Cardiovascular Systems, Inc. CSII, Oxford Immunotec Global PLC OXFD and Haemonetics Corporation HAE, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cardiovascular Systems has earnings growth rate for fiscal fourth quarter of 2019 of 33.3%.

Oxford Immunotec has a long-term earnings growth rate of 25%.

Haemonetics has a long-term earnings growth rate 13.5%.

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Oxford Immunotec Global PLC (OXFD) : Free Stock Analysis Report
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