Here's Why You Should Add Cooper Companies Stock to Your Portfolio Now

Shares of this Zacks Rank #2 (Buy) company have lost 6.3% so far this year against the industry's 7.4% gain and the S&P 500 Index’s 12.5% rise.

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Cooper Companies, with a market capitalization of $14.98 billion, is a global specialty medical device company.

COO’s bottom line is estimated to improve 8.3% over the next five years. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 5.80%.

What's Driving COO’s Performance?

Sustained Market-Share Gains and Premiumization: CooperVision continues to demonstrate structural competitive strength, recording its 18th consecutive year of market-share gains in 2025 and maintaining its position as the global contact-lens leader. Second-quarter revenues increased 8%, with the Americas and EMEA benefiting from premium products, while daily silicone hydrogel lenses grew 8% and flagship MyDay delivered double-digit growth.

Multifocals, Energys and Biofinity torics also posted solid momentum, indicating broad-based demand rather than dependence on one product. This premiumization trend should support revenue quality and pricing resilience as consumers increasingly migrate toward higher-value lenses.

MiSight Is Emerging as a High-Growth Franchise: CooperVision's myopia-control franchise remains a significant long-term growth opportunity. MiSight revenues increased 24% to $32 million in the second quarter, with Japan exceeding expectations and MyDay MiSight receiving strong initial adoption in Europe. Management is simultaneously expanding availability globally and increasing consumer-awareness campaigns to accelerate adoption.

The product's growth is particularly attractive because pediatric myopia represents a recurring, clinically driven demand opportunity rather than a purely discretionary lens category. Continued geographic expansion, physician education and new product development could therefore sustain elevated growth rates and increase MiSight's contribution to CooperVision's overall portfolio over the next several years.

Fertility Recovery Is Improving CooperSurgical's Growth Trajectory: CooperSurgical delivered an encouraging quarter, with revenues increasing 8% to $358 million and fertility revenues rising 10% organically to $144 million. Growth was supported by capital equipment, genomics, consumables and new clinic wins, while EMEA continued gaining share and the Americas remained solid.

Capital-equipment sales create a follow-on benefit because newly installed systems generate incremental consumable demand over time. Management expects fertility to grow at a mid-single-digit rate during the second half, supported by improving IVF cycles and increased clinic investment in technology and workflow optimization. This recovery provides a meaningful counterbalance to weakness in Asia-Pacific contact lenses.

What’s Weighing on COO Stock?

Weakness in Asia-Pacific: Asia-Pacific remains CooperVision's most significant near-term drag, with regional revenues declining 6% in the second quarter amid weaker-than-expected conditions in Japan and China. Management attributed the weakness primarily to softer consumer demand, while ongoing rationalization of legacy hydrogel products is adding pressure.

The company expects another decline in Asia-Pacific during the third quarter and acknowledged that hydrogel rationalization could continue affecting results through 2027. This weakness prompted Cooper Companies to reduce its full-year CooperVision organic-growth outlook to 3.5-4.5%. Although management expects the region to return to market-level performance by the fourth quarter, a prolonged consumer slowdown could delay the anticipated recovery.

Tariffs, Freight and FX Are Expected to Hurt Second-Half Margins: Cooper's strong first-half profitability is likely to face greater pressure in the second half as foreign exchange reverses and costs related to tariffs and freight increase. Management expects third-quarter gross margin to fall to approximately 66%, primarily because of unfavorable FX, tariffs, freight and lower production associated with inventory reductions.

The company currently assumes about $22 million of tariff costs for fiscal 2026, although potential refunds could provide some upside. These pressures could limit the conversion of revenue growth into earnings during the second half, explaining why management maintained its full-year EPS guidance at $4.58-$4.66 despite a strong second-quarter earnings beat.

Estimate Trend

The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $4.31 billion, implying growth of 5.3% from the year-ago reported figure. The consensus mark for adjusted EPS is pinned at $4.63, indicating an improvement of 12.4% from the previous year’s recorded level.

In the past 60 days, COO’s earnings estimate for fiscal 2026 has remained stable.

Key Picks

Some other top-ranked stocks from the broader medical space are STAAR Surgical STAA, Henry Schein HSIC and Cardinal Health CAH, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

STAAR Surgical reported second-quarter 2026 earnings per share of 31 cents, which beat the Zacks Consensus Estimate by 47.6%. Revenues of $94 million surpassed the Zacks Consensus Estimate by 3.1%.

STAAR Surgical has an estimated earnings growth rate of 875% for 2026. STAA’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 90.09%.

Henry Schein reported second-quarter 2026 adjusted EPS of $1.27, which beat the Zacks Consensus Estimate by 4.1%. Revenues of $3.46 billion surpassed the Zacks Consensus Estimate by 2.8%.

Henry Schein has an estimated earnings growth rate of 7.7% for 2026. HSIC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.46%.

Cardinal Health reported a fourth-quarter fiscal 2026 adjusted EPS of $2.91, which beat the Zacks Consensus Estimate by 20.3%. Revenues of $63.67 billion missed the Zacks Consensus Estimate by 2.96%.

Cardinal Health has an estimated earnings growth rate of 7.7% for fiscal 2027. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.72%.

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This article originally published on Zacks Investment Research (zacks.com).

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