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Cooper Companies (COO) Surges 4.5%: Is This an Indication of Further Gains?

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The Cooper Companies, Inc. (COO - Free Report) shares rallied 4.5% in the last trading session to close at $388.17. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.3% loss over the past four weeks.

Cooper Companies recorded a strong price increase courtesy of its encouraging fiscal first-quarter 2021 results, with reported earnings and revenues surpassing the Zacks Consensus Estimate by 14.4% and 3.1%, respectively. The fiscal 2021 guidance with adjusted earnings growth expectation of 33.8% to 35.8% on revenue-growth projection of 12% to 14% (at constant exchange rate) also instills optimism. Market is also upbeat about the company’s recent buyout of Safe Obstetric Systems, which will aid Cooper Companies in attaining its goal of enhancing and accelerating women’s healthcare.

Price and Consensus

Price Consensus Chart for Cooper Cos.

This surgical and contact lens products maker is expected to post quarterly earnings of $2.92 per share in its upcoming report, which represents a year-over-year change of +93.4%. Revenues are expected to be $669.63 million, up 27.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Cooper Companies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on COO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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