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Why The Cooper Companies (COO) is a Top Momentum Stock for the Long-Term
ZACKS· 2025-12-12 15:51
Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, helping investors identify stocks likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [5] - The Momentum Score identifies stocks with favorable price trends, utilizing recent price changes and earnings estimate shifts [6] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection [6] Zacks Rank and Style Scores Interaction - The Zacks Rank uses earnings estimate revisions to identify top-performing stocks, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988 [7] - There are over 800 stocks rated 1 or 2, making it essential to use Style Scores for effective selection [8] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing return potential [9] Company Spotlight: The Cooper Companies - The Cooper Companies operates in the medical device sector with two segments: CooperVision (CVI) and CooperSurgical (CSI) [11] - CVI specializes in contact lenses, particularly in daily silicone hydrogel lenses and myopia management, while CSI focuses on fertility and women's health products [11] - COO holds a 2 (Buy) rating on the Zacks Rank, with a VGM Score of B and a Momentum Style Score of A, reflecting a 14.4% increase in share price over the past four weeks [12] - Recent upward revisions in earnings estimates indicate a positive outlook, with the Zacks Consensus Estimate rising to $4.47 per share [12] - COO's strong performance metrics make it a notable investment opportunity [13]