The Cooper Companies, Inc. - Aggressive Growth

The Cooper Companies, Inc. (COO) surged to a multi-year high after beating Wall Street's expectations last week. Bullish analysts continue to raise estimates, keeping valuations in check.

Company Description

The Cooper Companies is a global medical products maker focusing on specialty healthcare. The company operates through its subsidiaries, CooperVision and CooperSurgical.

Solid Earnings Surprise

On Sep 2 The Cooper Companies reported third-quarter results that included a 4% increase in revenues, to just under $300 million. Margins are also improving. The gross margin came in at 60%, up from 51% a year ago.

Earnings per share came out to 91 cents per shares, which topped the Zacks Consensus Estimate by 20 cents.

Estimates Jump

Estimates were already rising heading into the earnings report, but analysts continued to raise after the report.

The full-year consensus for fiscal 2010 is up 31 cents to $2.87 on the earnings news. Forecasts for next year are up 14 cents, to $3.12. If theses levels are hit, annual growth rates will be 20% for this year and another 9% next year.

Valuations

Currently, shares of COO are going for about 14 times fiscal 2011 estimates. The growth is reasonably priced, with the PEG ratio coming in at 1.1.

The Chart

The stock was having trouble making its way past the previous 52-week high but saw a nice jump after last week's earnings surprise. Shares spiked to the highest level in the past 2 years.

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service
 
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