Trade-Ideas LLC identified

Cooper Companies

(

COO

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cooper Companies as such a stock due to the following factors:

  • COO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $88.3 million.
  • COO has traded 299,113 shares today.
  • COO traded in a range 239.6% of the normal price range with a price range of $9.13.
  • COO traded above its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on COO:

The Cooper Companies, Inc. operates as a medical device company worldwide. The stock currently has a dividend yield of 0%. COO has a PE ratio of 37. Currently there are 7 analysts that rate Cooper Companies a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Cooper Companies has been 493,000 shares per day over the past 30 days. Cooper Companies has a market cap of $7.1 billion and is part of the health care sector and health services industry. The stock has a beta of 0.41 and a short float of 5.8% with 4.34 days to cover. Shares are up 7.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cooper Companies as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • COO's revenue growth trails the industry average of 30.2%. Since the same quarter one year prior, revenues slightly increased by 1.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $89.54 million or 12.14% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.29%.
  • The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.85 is somewhat weak and could be cause for future problems.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Health Care Equipment & Supplies industry average. The net income has decreased by 16.1% when compared to the same quarter one year ago, dropping from $61.18 million to $51.36 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Health Care Equipment & Supplies industry and the overall market, COOPER COMPANIES INC's return on equity is below that of both the industry average and the S&P 500.

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