Cooper Companies: A Strong Buy

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Rising earnings estimates on the back of strong third quarter fiscal 2012 results helped Cooper Companies ( COO ) achieve a Zacks #1 Rank (Strong Buy) on September 11. Moreover, this contact lens and women's health focused company has delivered positive earnings surprises in six of the last seven quarters with an average beat of 10.9%.  

With a strong one-year return of 28.9%, an upgraded fiscal 2012 guidance and a history of beating quarterly earnings estimates, this stock offers an attractive investment opportunity.

The Rank Driver

Several factors such as a strong third quarter, raised guidance, margin expansion, acquisitions expanding the product line and geographical reach as well as share buybacks and an attractive valuation are driving the stock.

Cooper reported its third quarter fiscal 2012 results on September 6, 2012. Adjusted earnings per share ("EPS") came in at $1.45, reflecting an earnings surprise of 12.4% and a 26.4% year-over-year climb.

The company reported 8% year-over-year revenue growth (up 9% at constant exchange rate or CER and before acquisitions) grossing $378.2 million during the quarter. With this the company surpassed the Zacks Consensus Estimate of $368 million. The upside was primarily on the back of 5% growth in CooperVision revenue to $314.2 million.

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