The Cooper Companies
COO
$74.84
+0.20%
The Cooper Companies, Inc. is a global medical device company operating through two segments: CooperVision, a leading contact lens manufacturer, and CooperSurgical, which provides medical devices and fertility solutions. As one of the largest eyecare companies in the US, CooperVision holds roughly a quarter of the US contact lens market, while CooperSurgical's Paragard IUD captures 17% of the US IUD market. The current investor narrative centers on the company's recent quarterly loss, which has raised questions about near-term profitability, while the stock's recovery from its 52-week low suggests a potential turnaround story driven by its dominant market positions and long-term growth prospects in vision care and women's health.…
COO
The Cooper Companies
$74.84
Related headlines
Investment Opinion: Should I buy COO Today?
Based on the analysis, I rate COO as a Hold. The consensus analyst rating is 'Buy' with an average target price of $81.21, implying 12.3% upside, but the recent net loss and elevated valuation metrics warrant caution. The thesis is that COO's dominant market positions and steady revenue growth provide a foundation for recovery, but the near-term earnings uncertainty limits upside potential.
Sign up to view all
COO 12-Month Price Forecast
The AI assessment is neutral with medium confidence. The company has solid fundamentals, including dominant market positions and high gross margins, but the recent net loss and elevated valuation metrics create uncertainty. The stock's recovery from its 52-week low is encouraging, but the underperformance relative to the market over the past year suggests lingering concerns. If the company can demonstrate sustained profitability and revenue acceleration, the stance would upgrade to bullish. Conversely, another loss or decelerating growth would downgrade to bearish.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on The Cooper Companies's 12-month outlook, with a consensus price target around $81.21 and implied upside of +8.5% versus the current price.
Average Target
$81.21
0 analysts
Implied Upside
+8.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$66 - $92
Analyst target range
Analyst coverage is robust with 14 analysts, and the consensus recommendation is 'Buy' with a mean rating of 2.0 (where 1 is Strong Buy and 5 is Sell). The average target price is $81.21, implying an upside of 12.3% from the current price of $72.32. The target range spans from $66.00 (low) to $92.00 (high), indicating a wide dispersion of views. The high target suggests potential for a 27.2% upside, likely assuming a successful turnaround and margin recovery, while the low target implies a 8.7% downside, possibly reflecting concerns about continued operational challenges. Recent ratings have been stable, with no major upgrades or downgrades, but the presence of both Neutral and Outperform ratings highlights the uncertainty around the company's near-term earnings trajectory.
Bulls vs Bears: COO Investment Factors
The bull case for COO rests on its dominant market positions, steady revenue growth, and high gross margins, which provide a solid foundation for a potential earnings recovery. The bear case is driven by the recent net loss, elevated valuation multiples, and persistent underperformance relative to the market. Currently, the bull side has slightly stronger evidence, as the loss appears to be a one-time anomaly (TTM net margin is still positive at 9.2%), and analyst consensus remains bullish with a 12.3% upside. The most critical tension is whether the Q2 loss was truly non-recurring or signals deeper operational issues; if the latter, the stock could face further downside toward the low target of $66.00.
Bullish
- Dominant Market Positions: CooperVision holds roughly 25% of the US contact lens market, and CooperSurgical's Paragard IUD captures 17% of the US IUD market. These entrenched positions provide pricing power and a stable revenue base, supporting long-term growth.
- Steady Revenue Growth: Revenue grew 7.9% YoY in Q2 2026 to $1.0815 billion, with sequential increases from $964.7 million in Q1 2025. This consistent top-line expansion indicates resilient demand across both segments.
- Healthy Gross Margin: Gross margin remained strong at 68.0% in Q2 2026, consistent with the 67.8% in Q1 2026. This high margin provides a buffer against cost pressures and supports profitability once one-time charges subside.
- Analyst Consensus Buy: With 14 analysts, the consensus rating is 'Buy' (mean 2.0), and the average target price of $81.21 implies 12.3% upside from the current $72.32. The high target of $92.00 suggests potential 27.2% upside if the turnaround succeeds.
Bearish
- Q2 2026 Net Loss: The company reported a net loss of $77.9 million in Q2 2026, a sharp reversal from the $130.8 million profit in Q1 2026. This resulted in a negative net margin of -7.2%, raising concerns about earnings stability.
- Elevated Valuation Metrics: The EV/EBITDA of 15.81 is elevated relative to the sector, and the PS ratio of 3.42, while below historical averages, still implies a premium. The forward PE of 14.47 assumes a strong earnings recovery that may not materialize.
- Underperformance vs. Market: COO has underperformed the S&P 500 significantly over the past year: -15.88% relative strength over 1 year, and -20.39% YTD. This suggests persistent negative sentiment and potential continued headwinds.
- High Debt-to-Equity: Debt-to-equity is 0.34, which is manageable but not negligible. The interest expense of $20.9 million in Q2 2026 adds to fixed costs, and any further debt increase could pressure earnings.
COO Technical Analysis
The stock is currently in a recovery phase after a significant downtrend. Over the past year, COO has gained 2.31%, but this masks a volatile trajectory: it fell from a 52-week high of $89.83 to a low of $58.89, a decline of about 34.4%. As of July 31, 2026, the stock trades at $72.32, which is 80.5% of the way from the low to the high, indicating it has reclaimed a substantial portion of its losses but remains below the highs. This positioning suggests the stock is in a rebuilding phase, with momentum building but not yet at overbought levels.
Beta
0.82
0.82x market volatility
Max Drawdown
-30.1%
Largest decline past year
52-Week Range
$59-$90
Price range past year
Annual Return
+7.6%
Cumulative gain past year
| Period | COO Return | S&P 500 |
|---|---|---|
| 1m | +3.1% | +2.5% |
| 3m | +22.5% | +5.2% |
| 6m | -8.8% | +11.5% |
| 1y | +7.6% | +22.6% |
| ytd | -7.7% | +12.9% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
COO Fundamental Analysis
Revenue growth has been steady but modest. In the most recent quarter (Q2 2026, ended April 30, 2026), revenue was $1.0815 billion, up 7.9% year-over-year, and the company has consistently grown revenue from $964.7 million in Q1 2025 to $1.0815 billion in Q2 2026, showing a sequential upward trend. However, the company reported a net loss of $77.9 million in Q2 2026, a sharp reversal from the $130.8 million profit in Q1 2026, driven by a one-time charge or operational issues, as gross margin remained healthy at 68.0%. The loss resulted in a negative net margin of -7.2%, but the trailing twelve-month net margin is still positive at 9.2%, indicating the loss is likely an anomaly.
Quarterly Revenue
$1.1B
2026-04
Revenue YoY Growth
+7.9%
YoY Comparison
Gross Margin
68.0%
Latest Quarter
Free Cash Flow
$569500000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is COO Overvalued?
Given the negative trailing EPS, I selected the price-to-sales (PS) ratio as the primary valuation metric, as it provides a more stable comparison. The current PS ratio is 3.42, which is below the historical average of around 15-20 seen in the past two years, but this is partly due to the recent price decline. The forward PE is 14.47, implying the market expects earnings to recover strongly, as the trailing PE is negative due to the loss. The EV-to-EBITDA is 15.81, which is elevated relative to the sector, suggesting the market is pricing in future growth.
PE
37.2x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 2x~57x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.8x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are centered on the recent net loss of $77.9 million in Q2 2026, which reversed a profitable trend and resulted in a negative net margin of -7.2%. While the TTM net margin remains positive at 9.2%, the loss raises questions about earnings volatility and the sustainability of profitability. The company's debt-to-equity ratio of 0.34 and interest expense of $20.9 million per quarter add fixed costs, and any further debt increase could strain cash flow. Additionally, the negative PEG ratio of -8.14 reflects the market's uncertainty about future earnings growth, and the low free cash flow of $569.5 million TTM may limit flexibility for investments or dividends.