The Cooper Companies
COO
$76.17
-0.56%
The Cooper Companies, Inc. is a global medical device company operating through two segments: CooperVision, a leading contact lens manufacturer, and CooperSurgical, a provider of 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 offers the broadest device coverage for the IVF cycle and controls 17% of the US IUD market with Paragard. The company is currently navigating a period of mixed financial performance, with recent quarterly results showing a net loss due to one-time charges, while the stock has rebounded strongly over the past three months, reflecting investor optimism about its long-term growth prospects in the eyecare and women's health markets.…
COO
The Cooper Companies
$76.17
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Investment Opinion: Should I buy COO Today?
Rating: Buy. COO is a quality medical device company with strong market positions and attractive valuation, but the recent earnings volatility warrants a cautious approach. The consensus analyst rating is 'Buy' with an average target of $81.21, implying ~10.8% upside. The thesis is that the one-time charges are temporary and the company's growth trajectory will resume, supported by its leading brands and expanding fertility market.
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COO 12-Month Price Forecast
The AI assessment is neutral with medium confidence. While the valuation appears attractive and the company has strong market positions, the recent earnings volatility and underperformance relative to the market temper enthusiasm. The key is whether COO can deliver a strong earnings recovery in the next two quarters. If Q3 shows EPS above $0.70 and margins improve, the stance would upgrade to bullish. Conversely, another miss would likely lead to a bearish stance. The current price of $73.32 is near the lower end of the 52-week range, offering a favorable risk/reward if the base case materializes.
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 $81.50 and implied upside of +7.0% versus the current price.
Average Target
$81.50
0 analysts
Implied Upside
+7.0%
vs. current price
Analyst Count
—
covering this stock
Price Range
$66 - $92
Analyst target range
The stock has coverage from 14 analysts, with a consensus recommendation of 'Buy' and a mean rating of 2.0 (where 1 is Strong Buy and 5 is Sell). The average price target is $81.21, implying an upside of approximately 10.8% from the current price of $73.32. The target range is $66.00 to $92.00, with the low target suggesting a potential downside of -10.0% and the high target implying a 25.5% upside. Recent ratings from firms like Stifel, Baird, and Needham are Buy/Outperform, while Citigroup and JP Morgan maintain Neutral, reflecting a generally positive but cautious sentiment. The wide spread between low and high targets indicates moderate uncertainty about the company's near-term earnings recovery, but the consensus leans bullish.
Bulls vs Bears: COO Investment Factors
COO presents a mixed picture: strong revenue growth and market leadership are offset by a recent net loss and negative operating margin. The bull case is supported by attractive valuation metrics (PS below peers, forward P/E reasonable) and analyst optimism, while the bear case centers on earnings volatility and underperformance relative to the market. Currently, the evidence slightly favors the bulls, as the one-time nature of the charges and the strong recovery in the stock over the past 3 months (+22.2%) suggest the market is looking past the temporary setback. The key tension is whether the company can return to sustainable profitability and margin expansion, which would validate the current valuation and analyst targets.
Bullish
- Strong Revenue Growth: Q2 2026 revenue grew 7.9% YoY to $1.0815B, driven by both CooperVision ($723.5M) and CooperSurgical ($358M). This consistent growth outpaces the broader medical device sector and supports the company's expansion strategy.
- Attractive Valuation vs Peers: With a PS ratio of 3.42, COO trades below the industry average EV/Sales of 4.05, suggesting the stock is undervalued relative to its peers. The forward P/E of 14.68 also implies reasonable earnings expectations.
- Analyst Consensus is Buy: 14 analysts rate COO a 'Buy' with a mean rating of 2.0 (Strong Buy to Buy). The average price target of $81.21 implies ~10.8% upside from the current price of $73.32, with a high target of $92.00 offering 25.5% upside.
- Strong Balance Sheet: Debt-to-equity is a conservative 0.34, and the current ratio of 1.89 indicates ample liquidity. TTM free cash flow of $569.5M provides a solid cushion for operations and growth investments.
Bearish
- Recent Net Loss: Q2 2026 reported a net loss of -$77.9M, a sharp reversal from the prior quarter's $130.8M profit, due to one-time charges of $47.7M and an operating loss of -$31M. This raises concerns about earnings stability.
- Negative Operating Margin: Operating margin turned negative at -2.87% in Q2 2026, down from 20.8% in Q1. While partly due to charges, it highlights cost pressures and potential operational inefficiencies.
- Underperformance vs Market: COO's 1-year return of 7.63% lags the S&P 500's 21.46% gain. Relative strength over 6 months is -21.98%, indicating significant underperformance and potential investor skepticism.
- High Valuation on Trailing Earnings: The trailing P/E of 37.19 is elevated, reflecting the recent earnings dip. If earnings do not recover as expected, the stock could face de-rating pressure.
COO Technical Analysis
The stock is in a recovery phase after a significant drawdown. Over the past year, COO has gained 7.63%, but it remains well below its 52-week high of $89.83, currently trading at $73.32, which is about 81.6% of the 52-week range (from low of $58.89 to high of $89.83). This positioning suggests the stock is recovering from a trough but has not yet regained its previous highs, indicating potential upside if momentum continues. The 6-month price change is -10.69%, showing that the stock was in a downtrend earlier this year, but the 3-month change of +22.2% signals a strong turnaround.
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
+3.7%
Cumulative gain past year
| Period | COO Return | S&P 500 |
|---|---|---|
| 1m | +7.9% | +2.9% |
| 3m | +27.8% | +5.0% |
| 6m | -8.2% | +13.9% |
| 1y | +3.7% | +20.4% |
| ytd | -6.1% | +13.8% |
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COO Fundamental Analysis
Revenue has been growing steadily, with the most recent quarter (Q2 2026) reporting $1.0815 billion, up 7.9% year-over-year. This growth is driven by both segments, with CooperVision contributing $723.5 million and CooperSurgical $358 million. However, the company reported a net loss of -$77.9 million in Q2 2026, a sharp reversal from the prior quarter's net income of $130.8 million, primarily due to a one-time charge (other expenses of $47.7 million) and an operating loss of -$31 million. Gross margin remains strong at 68.0%, but operating margin turned negative at -2.87%, reflecting the impact of the charges. The company's balance sheet is stable with a debt-to-equity ratio of 0.34 and a current ratio of 1.89, indicating adequate liquidity. Free cash flow for the quarter was $96.4 million, and TTM free cash flow is $569.5 million, providing sufficient cash to fund operations and growth initiatives.
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
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Valuation Analysis: Is COO Overvalued?
Given the recent net loss, the trailing P/E ratio is not meaningful, so we use the price-to-sales ratio for valuation. The current PS ratio is 3.42, which is below the industry average of 4.05 (EV/Sales), suggesting the stock is trading at a discount to its peers. The forward P/E of 14.68 implies that the market expects earnings to recover strongly, with estimated EPS of $5.79 for the next fiscal year. Historically, the stock's PS ratio has ranged from about 11 to 27 over the past few years, so the current level is near the lower end, indicating potential undervaluation. The PEG ratio is negative due to the earnings decline, but the forward P/E suggests a reasonable valuation if the company returns to profitability.
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 & Operational Risks: COO's recent net loss of -$77.9M in Q2 2026, driven by one-time charges and an operating loss, highlights earnings volatility. The company's operating margin swung from 20.8% in Q1 to -2.87% in Q2, indicating potential cost control issues. While the balance sheet is stable with a debt-to-equity of 0.34 and current ratio of 1.89, the reliance on continued revenue growth to justify the forward P/E of 14.68 is a risk. If growth decelerates or margins remain compressed, the stock could face downward pressure. Additionally, the negative PEG ratio (-8.14) reflects the earnings decline, making traditional valuation metrics less reliable.