As it ramps up its surgical side of the business, this revenue would be icing on the cake as they say. If they can simply increase sales by another 4-6% from this side of the business, you are looking at 10% annual growth easily.
And now is a great time to buy this stock. The company recently reported earnings that showed revenues were up 18%, but they missed badly on earnings per share. This was due to execution issues with the acquisition of Paragard.
As a result, the stock price dropped by 10% and is now trading at just 19 times earnings versus 24 times earnings for the market as a whole. I am confident that the company will be able to correct their execution issues with the purchase of Paragard and that the stock price will easily move higher in the coming months.
Given how the market as a whole has nicely gained over the years, it is tough for investors to find good deals. When you do come across a deal, you have to act fast in order to scoop it up at a bargain price.
The time to buy Cooper Companies is right now. They are firing on all cylinders with their contact lens business but investors have hurt the stock with the company’s short term issues surrounding Paragard.
But over the long term, this stock should be able to consistently offer 10% growth or more.
This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.