Why Cochlear Shares Popped Today

What happened to the Cochlear share price?

Shares of Cochlear Ltd [ASX:COH] gained more than 14% on Thursday, rebounding after a poor start to February.

Why did Cochlear shares do this?

Cochlear has had a good run since mid-2013 after the share price had fallen from a near record high. But today’s gain has helped to push the stock to a new record and break through the $100 barrier.

The share price gained after the company upgraded its profit forecast, and increased the interim dividend.

What now for Cochlear Ltd?

Cochlear has been labelled as a high growth, high risk, and volatile company, due to the nature of its business in the medical devices sector.

But with strong revenue and profit growth, plus an increase to the dividend, investors could start to look at the stock differently.

However, that won’t stop it from being a high risk proposition. Just as a positive earnings surprise can send the stock soaring, if the company disappoints in the future, even by not growing as quickly as some investors hope, the stock price could quickly turn in the opposite direction

Cheers,
Kris


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

Money Morning Australia is published by Fat Tail Investment Research, an independent financial publisher based in Melbourne, Australia. As an Australian financial services license holder we are subject to the regulations and laws of Corporations Act and Financial Services Act.


Money Morning Australia