Here's Why You Should Hold Cooper Companies (COO) Stock Now
Zacks Investment Research | Dec 17, 2018 08:39PM ET
The Cooper Companies, Inc. (NYSE:COO) is expected to benefit from its fiscal fourth-quarter results and a strong CooperVision (CVI) unit. However, sluggishness in the Fertility unit might mar prospects.
The stock currently has a Zacks Rank #3 (Hold).
Price Performance
Over the past year, shares of Cooper have rallied 9.1% against the industry ’s decline of 9.9%. The current level is also higher than the S&P 500 index’s 5.4% fall.
What’s Deterring the Stock?
In the recently-reported fiscal fourth quarter, Cooper’s Fertility unit saw sluggishness owing to channel inventory contraction associated with the LifeGlobal integration. Notably, sales at the unit was $60.9 million, down 9% year over year and 6% at pro forma. Moreover, genomics business within Fertility declined in the quarter.
Additionally, foreign currency fluctuations continue to plague the company. In the fiscal fourth quarter, Cooper incurred a loss of $1.7 million owing to negative currency movement.
Why Should You Retain Cooper?
Cooper reported fiscal 2018 earnings of $2.87 per share, which increased 8.3% on a year-over-year basis.
The company reported revenues worth $651.5 million. On a year-over-year basis, revenues improved 16%.
Cooper’s core CVI segment garnered revenues worth $480.6 million, up 10% on a pro forma basis and 9% year over year. Per management, the segment saw a noticeable uptick in the daily silicone hydrogel lenses, showing pro forma growth of 50% driven by accelerating growth in both Clariti and MyDay.
Additionally, the segment recorded strong growth across Americas, EMEA and Asia Pacific regions. Reflective of these, management expects CVI to grow 6-8% at pro forma in fiscal 2019. Per management, overseas growth was driven by clariti and MyDay strength and solid results from Biofinity and Avaira Vitality.
Cooper expects fiscal 2019 revenues within $2,600-$2,660 million. Notably, revenues from CVI are expected between $1,940 million and $1,980 million. The same from CooperSurgical (CSI) are anticipated within $660-$680 million.
The company also expects adjusted earnings per share between $11.30 and $11.70.
Get The News You Want
The Cooper Companies, Inc. Price and Consensus
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
OPKO Health’s long-term earnings growth rate is projected at 12%. The stock carries a Zacks Rank of 2.
Surmodics’ long-term earnings growth rate is estimated at 10%. The stock carries a Zacks Rank #2.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.