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Reasons to Add The Cooper Companies Stock to Your Portfolio Now
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The Cooper Companies, Inc. (COO - Free Report) is well-poised for growth on the back of strong prospects in its CooperVision (CVI) and CooperSurgical (CSI) business segments. Acquisitions boost the company’s portfolio and buoy optimism. However, unfavorable currency movements and rising costs continue to hurt revenues and margins, respectively.
Shares of this Zacks Rank #2 (Buy) company have risen 9.7% year to date compared with the industry's 4.9% growth. The S&P 500 Index has gained 26.2% in the said time frame.
The Cooper Companies, with a market capitalization of $20.66 billion, is a global specialty medical device company.
The company’s bottom line is estimated to improve 11.4% over the next five years. Its earnings beat estimates in two of the trailing four quarters and met the mark in the other two, delivering an average surprise of 3.87%.
Image Source: Zacks Investment Research
What's Driving COO’s Performance?
The Cooper Companies continues to lead the specialty contact lens market with its innovative product lineup, flexibility and strong relationships in key accounts. Its flagship silicone hydrogel lenses, such as MyDay and Clariti, are expected to fuel robust sales in the upcoming quarters. Additionally, its silicone hydrogel FRP lenses, Biofinity and Avaira, are projected to support revenue growth.
The lens business is set to thrive, driven by notable growth in CooperVision’s (CVI) Toric, Multifocal and single-use sphere segments, with positive trends observed across all geographic regions. Moreover, COO’s myopia management portfolio, led by the high-demand MiSight lens, is performing well. This sector is anticipated to see further gains in the coming quarters, bolstered by back-to-school promotional campaigns.
In the second quarter, the CVI segment showed solid growth, with revenues rising 9% at constant currency to $675.6 million. According to management, the strong demand for silicone hydrogel lenses contributed to this performance.
In August, COO acquired obp Surgical, a U.S.-based medical device company known for its innovative single-use surgical products. obp Surgical’s ONETRAC portfolio complements CooperSurgical’s offerings, which include INSORB, Lone Star and the Doppler Blood Flow Monitor. COO also recently launched a new inserter for single-hand placement of Paragard, simplifying the procedure for healthcare providers and enhancing Paragard’s accessibility as a contraceptive choice. During the second quarter, COO introduced new culture and transfer media, premier cryo management software called Embryo Options in Europe and launched the new FastTrack genomics testing globally.
CVI revenues are likely to be in the $673-$685 million range (organic growth of 8-10%) in the fourth quarter of fiscal 2024.
The Cooper Companies is also well-positioned to capitalize on its expanding CSI product portfolio. In the fiscal second quarter, CSI achieved constant-currency revenue growth in two core areas — fertility and office and surgical products. Sales in the office and surgical product category are expected to increase, driven by the strong growth of PARAGARD and increasing demand for stem cell storage.
Although shipping disruptions at the company’s U.S. distribution center for medical devices and fertility products, resulting from a systems upgrade in the fiscal second quarter, might have persisted in the fiscal fourth quarter, the situation is anticipated to improve.
Revenues from fertility increased 6% year over year to $129.3 million, indicating sustained solid performance. Sales of office and surgical products improved 11% to $197.9 million.
CSI revenues are expected to be in the $342-$350 million range for the fourth quarter of fiscal 2024, implying organic growth of 6-8%.
What's Weighing on the Stock?
The Cooper Companies generates a significant portion of its revenues in foreign currencies. Fluctuations in foreign exchange rates may significantly affect its overseas revenues.
Estimate Trend
The Zacks Consensus Estimate for the company's fiscal 2025 revenues is pegged at $4.19 billion, implying growth of 7.4% from the year-ago reported figure. The consensus mark for adjusted earnings per share is pinned at $4.06, indicating an improvement of 11.1% from the previous year’s recorded level.
In the past 60 days, COO’s earnings estimate for fiscal 2025 has improved 1 cent.
ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.
AngioDynamics’ shares have lost 5.5% year to date against the industry’s 6.3% growth.
Masimo, sporting a Zacks Rank of 1 at present, has an estimated growth rate of 10.4% for 2025. MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%.
Masimo’s shares have risen 43% year to date compared with the industry’s 6.3% growth.
Globus Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 12.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 55.2% year to date compared with the industry’s 6.3% growth.
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Reasons to Add The Cooper Companies Stock to Your Portfolio Now
The Cooper Companies, Inc. (COO - Free Report) is well-poised for growth on the back of strong prospects in its CooperVision (CVI) and CooperSurgical (CSI) business segments. Acquisitions boost the company’s portfolio and buoy optimism. However, unfavorable currency movements and rising costs continue to hurt revenues and margins, respectively.
Shares of this Zacks Rank #2 (Buy) company have risen 9.7% year to date compared with the industry's 4.9% growth. The S&P 500 Index has gained 26.2% in the said time frame.
The Cooper Companies, with a market capitalization of $20.66 billion, is a global specialty medical device company.
The company’s bottom line is estimated to improve 11.4% over the next five years. Its earnings beat estimates in two of the trailing four quarters and met the mark in the other two, delivering an average surprise of 3.87%.
Image Source: Zacks Investment Research
What's Driving COO’s Performance?
The Cooper Companies continues to lead the specialty contact lens market with its innovative product lineup, flexibility and strong relationships in key accounts. Its flagship silicone hydrogel lenses, such as MyDay and Clariti, are expected to fuel robust sales in the upcoming quarters. Additionally, its silicone hydrogel FRP lenses, Biofinity and Avaira, are projected to support revenue growth.
The lens business is set to thrive, driven by notable growth in CooperVision’s (CVI) Toric, Multifocal and single-use sphere segments, with positive trends observed across all geographic regions. Moreover, COO’s myopia management portfolio, led by the high-demand MiSight lens, is performing well. This sector is anticipated to see further gains in the coming quarters, bolstered by back-to-school promotional campaigns.
In the second quarter, the CVI segment showed solid growth, with revenues rising 9% at constant currency to $675.6 million. According to management, the strong demand for silicone hydrogel lenses contributed to this performance.
In August, COO acquired obp Surgical, a U.S.-based medical device company known for its innovative single-use surgical products. obp Surgical’s ONETRAC portfolio complements CooperSurgical’s offerings, which include INSORB, Lone Star and the Doppler Blood Flow Monitor. COO also recently launched a new inserter for single-hand placement of Paragard, simplifying the procedure for healthcare providers and enhancing Paragard’s accessibility as a contraceptive choice. During the second quarter, COO introduced new culture and transfer media, premier cryo management software called Embryo Options in Europe and launched the new FastTrack genomics testing globally.
CVI revenues are likely to be in the $673-$685 million range (organic growth of 8-10%) in the fourth quarter of fiscal 2024.
The Cooper Companies is also well-positioned to capitalize on its expanding CSI product portfolio. In the fiscal second quarter, CSI achieved constant-currency revenue growth in two core areas — fertility and office and surgical products. Sales in the office and surgical product category are expected to increase, driven by the strong growth of PARAGARD and increasing demand for stem cell storage.
Although shipping disruptions at the company’s U.S. distribution center for medical devices and fertility products, resulting from a systems upgrade in the fiscal second quarter, might have persisted in the fiscal fourth quarter, the situation is anticipated to improve.
Revenues from fertility increased 6% year over year to $129.3 million, indicating sustained solid performance. Sales of office and surgical products improved 11% to $197.9 million.
CSI revenues are expected to be in the $342-$350 million range for the fourth quarter of fiscal 2024, implying organic growth of 6-8%.
What's Weighing on the Stock?
The Cooper Companies generates a significant portion of its revenues in foreign currencies. Fluctuations in foreign exchange rates may significantly affect its overseas revenues.
Estimate Trend
The Zacks Consensus Estimate for the company's fiscal 2025 revenues is pegged at $4.19 billion, implying growth of 7.4% from the year-ago reported figure. The consensus mark for adjusted earnings per share is pinned at $4.06, indicating an improvement of 11.1% from the previous year’s recorded level.
In the past 60 days, COO’s earnings estimate for fiscal 2025 has improved 1 cent.
The Cooper Companies, Inc. Price
The Cooper Companies, Inc. price | The Cooper Companies, Inc. Quote
Other Key Picks
Some other top-ranked stocks from the medical industry are AngioDynamics (ANGO - Free Report) , Masimo (MASI - Free Report) and Globus Medical (GMED - Free Report) .
AngioDynamics, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 38.2% for 2025. You can seethe complete list of today’s Zacks #1 Rank stocks here.
ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.
AngioDynamics’ shares have lost 5.5% year to date against the industry’s 6.3% growth.
Masimo, sporting a Zacks Rank of 1 at present, has an estimated growth rate of 10.4% for 2025. MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%.
Masimo’s shares have risen 43% year to date compared with the industry’s 6.3% growth.
Globus Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 12.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 55.2% year to date compared with the industry’s 6.3% growth.