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Here's Why Investors Should Bet on Cooper Companies (COO) Now
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The Cooper Companies Inc. (COO - Free Report) is well poised for growth backed by solid segmental performances, increasing penetration in international markets and strong prospects in the core CooperVision (CVI) unit.
Supported by highly exclusive products of Biofinity and Clariti, Cooper Companies maintained its leading position in the markets of specialty lenses. In fact, the company’s flagship silicone hydrogel lenses are expected to deliver strong sales for in the coming quarters. The company’s MyDay lenses are already available in Europe and have gained significant traction within a short span of time. Clariti lenses too hold strong prospects for the company.
In a year’s time, this Zacks Rank #2 (Buy) company has outperformed its industry. The stock has gained almost 19.9% against the industry’s 7.7% decline.
What’s Favoring the Stock?
Strong Q1 Results
Cooper Companies exited the first-quarter fiscal 2019 on a strong note and raised guidance for the fiscal year. In the first quarter, adjusted earnings came in at $2.88 per share, which surpassed the Zacks Consensus Estimate of $2.51.
For fiscal 2019, the company expects adjusted revenues in the $2.63-$2.68 billion band compared with $2.60-$2.66 billion projected earlier. This represents year-over-year growth in the band of 6-7% on a pro-forma basis.
Cooper Companies expects fiscal 2019 adjusted earnings per share in the $11.85-$12.15 band compared with $11.30-$11.70 anticipated earlier.
Solid CVI Segment
CVI garnered revenues worth $470.1 million, up 8% on a pro-forma basis and 6% on a reported basis. Per management, the segment saw a noticeable uptick in the Single-use sphere lenses (28% of CVI), reflecting pro-forma growth of 17% driven by accelerating growth in both Clariti and MyDay.
In February, CooperVision contact lens manufacturing facility in Alajuela, Costa Rica has been awarded the prestigious LEED Silver certification for its environmentally-conscious design and operation.
For fiscal 2019, revenues from CVI are expected between $1,968 million and $1,995 million, higher than $1,940 million and $1,980 million projected earlier. This represents 3-6% year-over-year growth on a pro-forma basis.
Which Way Are Estimates Headed?
For fiscal 2019, the Zacks Consensus Estimate for revenues stands at $2.65 billion, reflecting a 4.6% improvement year over year. The same for earnings stands at $11.90, mirroring 3.5% growth year over year.
ABIOMED’s long-term expected earnings growth rate is projected at 27.7%.
IDEXX Laboratories delivered a positive earnings surprise in each of the trailing four quarters, the average being 7.2%.
Wright Medical Group has a long-term expected earnings growth rate of 11.3%.
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This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Here's Why Investors Should Bet on Cooper Companies (COO) Now
The Cooper Companies Inc. (COO - Free Report) is well poised for growth backed by solid segmental performances, increasing penetration in international markets and strong prospects in the core CooperVision (CVI) unit.
Supported by highly exclusive products of Biofinity and Clariti, Cooper Companies maintained its leading position in the markets of specialty lenses. In fact, the company’s flagship silicone hydrogel lenses are expected to deliver strong sales for in the coming quarters. The company’s MyDay lenses are already available in Europe and have gained significant traction within a short span of time. Clariti lenses too hold strong prospects for the company.
In a year’s time, this Zacks Rank #2 (Buy) company has outperformed its industry. The stock has gained almost 19.9% against the industry’s 7.7% decline.
What’s Favoring the Stock?
Strong Q1 Results
Cooper Companies exited the first-quarter fiscal 2019 on a strong note and raised guidance for the fiscal year. In the first quarter, adjusted earnings came in at $2.88 per share, which surpassed the Zacks Consensus Estimate of $2.51.
For fiscal 2019, the company expects adjusted revenues in the $2.63-$2.68 billion band compared with $2.60-$2.66 billion projected earlier. This represents year-over-year growth in the band of 6-7% on a pro-forma basis.
Cooper Companies expects fiscal 2019 adjusted earnings per share in the $11.85-$12.15 band compared with $11.30-$11.70 anticipated earlier.
Solid CVI Segment
CVI garnered revenues worth $470.1 million, up 8% on a pro-forma basis and 6% on a reported basis. Per management, the segment saw a noticeable uptick in the Single-use sphere lenses (28% of CVI), reflecting pro-forma growth of 17% driven by accelerating growth in both Clariti and MyDay.
In February, CooperVision contact lens manufacturing facility in Alajuela, Costa Rica has been awarded the prestigious LEED Silver certification for its environmentally-conscious design and operation.
For fiscal 2019, revenues from CVI are expected between $1,968 million and $1,995 million, higher than $1,940 million and $1,980 million projected earlier. This represents 3-6% year-over-year growth on a pro-forma basis.
Which Way Are Estimates Headed?
For fiscal 2019, the Zacks Consensus Estimate for revenues stands at $2.65 billion, reflecting a 4.6% improvement year over year. The same for earnings stands at $11.90, mirroring 3.5% growth year over year.
The Cooper Companies, Inc. Price and Consensus
The Cooper Companies, Inc. Price and Consensus | The Cooper Companies, Inc. Quote
Want More From the Industry?
Other top-ranked stocks from the MedTech space are ABIOMED, Inc. , IDEXX Laboratories, Inc. (IDXX - Free Report) and Wright Medical Group N.V. , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ABIOMED’s long-term expected earnings growth rate is projected at 27.7%.
IDEXX Laboratories delivered a positive earnings surprise in each of the trailing four quarters, the average being 7.2%.
Wright Medical Group has a long-term expected earnings growth rate of 11.3%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>