An Undervalued Stock for Farsighted Investors
Those with a long-term focus will earn attractive returns as the true earnings power of this firm's growth-driving product becomes apparent during the next three years.
David Krempa: Cooper Companies is the third largest manufacturer of contact lenses in the world. Although they compete with health-care giants like Novartis and Johnson & Johnson, we think they have carved out a narrow economic moat due to their focus on specialty lenses and their strong relationships with optometrists.
We view the contact lens markets as an attractive area in the health-care market due to the cash-pay nature of the business. The contact lens manufacturers don't have to deal with the pricing pressure from pharmacy benefit managers or large government payers. So they have a lot stronger pricing power.
David Krempa does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.