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The Cooper Companies (COO) Scales a New 52-Week High

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Share price of The Cooper Companies (COO - Free Report) rallied to a new 52-week high of $182.21 on Jul 8, eventually closing a tad bit lower at $181.83. This represents a strong year-to-date return of approximately 35.5%, better than the S&P 500’s 4.2% over the same period.

Currently, Cooper Companies holds a Zacks Rank #2 (Buy). The stock has a market cap of $8.81 billion and a long-term expected earnings growth rate of 11.5%.

Growth Catalysts

Cooper Companies reported an impressive first quarter of 2016 with revenues of $483.8 million, improving 9% year over year at constant currency. Notably, adjusted earnings of $2.05 per share beat the Zacks Consensus Estimate by 13 cents, up 19% on a year-over-year basis.

COOPER COS Price and Consensus

COOPER COS Price and Consensus | COOPER COS Quote

Each and every segment of the company contributed toward the growth opportunities. The CooperVision segment (CVI) of the company posted a stellar performance, raking in revenues of $391.2 million (up 9% at constant currency). Particularly, the Silicone hydrogel line of products at the segment (Biofinity, Clariti, MyDay and Avaira) is considered a major growth contributor.

The CooperSurgical (CSI) unit of the company performed exceptionally well, enhancing the growth trajectory. Revenues at the segment surged 6% year over year at constant currency to $92.6 million.

Also, strategic tie-ups with the companies like Genesis Genetics, K-Systems and Recombine are fortifying the company’s position in the IVF global market, which should also open up newer avenues in the days ahead.

Meanwhile, encouraged by the stellar first-quarter performance, Cooper Companies raised its full-year 2016 guidance. The company now expects revenues in the range of $1.93–$1.96 billion while adjusted earnings are forecasted in the band of $8.20 to $8.50 per share.

Estimate Revisions

The Zacks Consensus Estimate for fiscal 2016 increased by 18 cents to $8.38 over the last 60 days. Similarly, fiscal 2017, estimates have scaled a massive 31 cents to $9.45 over the same time frame.

Other Key Picks

Other favorably ranked stocks in the broad medical sector include Halyard Health Inc , C.R. Bard Inc and Becton, Dickinson and Company (BDX - Free Report) . Notably, Halyard Health sports a Zacks Rank #1 (Strong Buy) while C.R. Bard and Becton, Dickinson carry a Zacks Rank #2.

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