Shares of Cochlear Limited (ASX: COH) have surged higher today despite the absence of any specific news to explain the market's sudden interest.
The stock gained a total of $5.23 per share, or 6.8%, to trade as high as $84.89 early in the session. It's possible that investors are simply buying back into the stock following a heavy selloff over the last five weeks or so.
The stock traded at $89.32 at the end of May and hit a low of just $77.72 on Thursday last week. The stock's 13% decline compares to a 5% fall for the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), and an 11% and flat return for fellow medical device manufacturers Sirtex Medical Limited (ASX: SRX) and ResMed Inc. (CHESS) (ASX: RMD) over the same time, respectively.
Cochlear is a global leader in the cochlear implantable device market for the hearing impaired, boasting a market capitalisation of nearly $5 billion. Although its dominance on the global stage has fallen into question on a number of occasions as a result of the emergence of Chinese producers offering cheaper products, the quality of Cochlear's devices has so far been enough to prove its doubters wrong.
Despite today's rise, Cochlear still appears to be a great prospect for long-term investors moving forward. Although the stock is by no means 'cheap', earnings are expected to continue growing strongly over the coming years which could even see the stock rise above the $100 mark.
Before you buy shares in Cochlear however, it would be well worth checking out some of the other great opportunities currently on offer. The market as a whole has been sold off heavily recently as a result of the 'crises' currently gripping Greece and China with a number of bargain opportunities presenting themselves to investors willing to take that chance. The smart money is looking for up-and-coming smaller companies with huge potential
