The Cooper Companies
COO
$73.10
+3.54%
The Cooper Companies is a leading global eyecare and women's health medical device company operating through two segments: CooperVision, a pure-play contact lens business with brands like Biofinity and MyDay, and CooperSurgical, which provides fertility and contraception products including the hormone-free IUD Paragard. As one of the largest eyecare companies in the US, Cooper controls roughly one-fourth of the US contact lens market and 17% of the US IUD market, positioning it as a dominant player in both niches. The current investor narrative centers on the company's ability to sustain growth amid a challenging macroeconomic environment, with recent quarterly results showing a 7.9% revenue increase but a net loss due to one-time charges, sparking debate about margin recovery and long-term earnings power.…
COO
The Cooper Companies
$73.10
Related headlines
COO 12-Month Price Forecast
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 $82.23 and implied upside of +12.5% versus the current price.
Average Target
$82.23
0 analysts
Implied Upside
+12.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$66 - $92
Analyst target range
The target price range spans from a low of $66.00 to a high of $92.00, representing a spread of $26.00 or 39% of the average target, indicating moderate uncertainty. The high target of $92.00 assumes a successful turnaround with margin expansion and revenue acceleration, while the low target of $66.00 factors in persistent margin pressure and competitive headwinds. Recent ratings actions have been stable, with firms like Citigroup maintaining Neutral, while BNP Paribas and Mizuho reiterate Outperform, suggesting analysts are waiting for clearer signs of earnings recovery before becoming more aggressive.
Bulls vs Bears: COO Investment Factors
Cooper Companies presents a mixed picture: its dominant market positions in contact lenses and IUDs, steady revenue growth, and strong free cash flow are bullish, while the recent net loss, decelerating growth, and high trailing PE are bearish. The bull case hinges on a successful earnings rebound, as implied by the forward PE, while the bear case focuses on margin pressure and competitive headwinds. Currently, the bearish evidence is slightly stronger due to the net loss and negative relative strength, but the stock could be attractive for value investors if the turnaround materializes. The single most important tension is whether the Q2 2026 net loss is a transitory blip or the start of a sustained profitability decline.
Bullish
- Dominant Market Positions: Cooper controls roughly one-fourth of the US contact lens market and 17% of the US IUD market, providing strong competitive moats and recurring revenue streams from consumable products.
- Revenue Growth Continues: Q2 2026 revenue grew 7.9% YoY to $1.0815 billion, driven by CooperVision's $723.5 million segment, indicating sustained demand for contact lenses despite macro headwinds.
- Forward PE Suggests Earnings Rebound: The trailing PE of 37.2x is elevated, but the forward PE of 14.1x implies the market expects a significant earnings recovery, with analysts estimating EPS of $5.85 for the next fiscal year.
- Analyst Consensus Buy with Upside: With 13 analysts covering, the consensus is Buy and the average target price of $82.23 implies 16.5% upside from the current price of $70.60, supported by a high target of $92.00.
Bearish
- Net Loss in Q2 2026: The company reported a net loss of -$77.9 million in Q2 2026, compared to net income of $87.7 million in the prior-year quarter, driven by a -$31 million operating loss and a sharp increase in operating expenses.
- Revenue Growth Deceleration: Revenue growth decelerated from 10.6% YoY in Q1 2026 to 7.9% in Q2 2026, and the stock is trading near the low end of its 52-week range, reflecting market concerns about sustained momentum.
- Elevated Trailing PE Multiple: The trailing PE of 37.2x is high relative to the broader market and the forward PE of 14.1x, suggesting that current earnings are depressed and any disappointment in the recovery could lead to multiple compression.
- Negative Relative Strength: The stock's 1-year relative strength vs. SPY is -23.1%, and 6-month relative strength is -23.4%, indicating persistent underperformance and potential further downside if macro conditions worsen.
COO Technical Analysis
The stock is in a clear downtrend over the past year, with a 1-year price change of -2.2% and a 52-week range of $58.89 to $89.83. Currently trading at $70.60, the stock sits at approximately 39% of its 52-week range (($70.60 - $58.89) / ($89.83 - $58.89) = 0.39), indicating it is closer to the low end. This positioning suggests the market is pricing in significant headwinds, and the stock may be viewed as a value opportunity if fundamentals stabilize, but also risks further downside if earnings disappoint. The beta of 0.84 implies lower volatility than the market, which may appeal to risk-averse investors but also limits upside participation in rallies.
Beta
0.84
0.84x market volatility
Max Drawdown
-30.1%
Largest decline past year
52-Week Range
$59-$90
Price range past year
Annual Return
+0.6%
Cumulative gain past year
| Period | COO Return | S&P 500 |
|---|---|---|
| 1m | +8.5% | +0.1% |
| 3m | +4.3% | +5.7% |
| 6m | -11.3% | +8.5% |
| 1y | +0.6% | +20.3% |
| ytd | -9.9% | +10.1% |
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COO Fundamental Analysis
Revenue has shown steady growth, with the most recent quarter (Q2 2026) reporting $1.0815 billion, up 7.9% year-over-year from $1.0023 billion in the prior-year quarter. However, the growth trajectory has decelerated from the 10.6% YoY growth seen in Q1 2026, and the company posted a net loss of -$77.9 million in Q2 2026 compared to net income of $87.7 million in Q2 2025, driven by a sharp increase in operating expenses and a -$31 million operating loss. The CooperVision segment generated $723.5 million in revenue, while CooperSurgical contributed $358 million, with the contact lens business remaining the primary growth driver.
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?
Since net income is positive on a trailing twelve-month basis (TTM net income of $236.3 million from the last four quarters), the PE ratio is the primary valuation metric. The trailing PE of 37.2x is elevated relative to the forward PE of 14.1x, implying the market expects a significant earnings rebound in the coming year. This wide gap suggests that current earnings are depressed by transitory factors, and the forward multiple reflects optimism about normalization.
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: The most immediate financial risk is the net loss of -$77.9 million in Q2 2026, driven by a -$31 million operating loss and a sharp increase in operating expenses to $766.4 million. The company's operating margin turned negative at -2.9% in Q2, compared to 18.4% in the prior-year quarter, indicating significant cost pressures. While the debt-to-equity ratio is low at 0.34, the interest expense of $20.9 million per quarter is manageable but adds to the earnings drag. The revenue growth deceleration from 10.6% to 7.9% YoY raises concerns about whether the company can sustain its top-line momentum in a challenging macro environment.
Market & Competitive Risks: The stock's beta of 0.84 suggests lower volatility than the market, but its 1-year relative strength of -23.1% versus the S&P 500 indicates persistent underperformance. The trailing PE of 37.2x is elevated relative to the forward PE of 14.1x, implying that the market is pricing in a sharp earnings recovery; any disappointment could lead to multiple compression. Competitive risks include potential market share loss in contact lenses from players like Alcon and J&J, and in IUDs from hormonal alternatives. The stock's 52-week low of $58.89 is only 16.6% below the current price, offering limited downside protection.
Worst-Case Scenario: In a worst-case scenario, the company fails to restore profitability, with operating margins remaining negative due to sustained cost inflation and competitive pricing pressure. This could lead to analyst downgrades and a re-rating of the stock toward the low target of $66.00 or even the 52-week low of $58.89. From the current price of $70.60, an investor could lose up to -16.6% to the 52-week low, or -6.5% to the low analyst target. If the company reports another quarterly loss, the stock could break below $58.89, potentially testing $55.00, representing a -22% downside.