Reasons to Retain The Cooper Companies Stock in Your Portfolio Now

The Cooper Companies, Inc. COO 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 #3 (Hold) company have lost 12.8% so far this year compared with the industry's 0.8% decline. The S&P 500 Index has decreased 0.3% in the said time frame.The Cooper Companies, with a market capitalization of $16.12 billion, is a global specialty medical device company.The company’s bottom line is estimated to improve 10% over the next five years. Its earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 2.698%.Image Source: Zacks Investment ResearchWhat'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 with 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 contact lens market is expected to grow 5-7% in 2025, supported by the long-term macro growth trend of more people needing vision correction. Strong demand for Cooper Companies’ lenses has led to a gain in market share as the company remains the leader in the category. A shift in demand toward higher value products, coupled with price hikes by the company for certain lenses, buoys optimism. COO’s focus on launching new products is promising.In the fiscal first quarter, the CVI segment showed solid growth, with revenues rising 4% at constant currency to $646.1 million. According to management, the strong demand for silicone hydrogel lenses contributed to this performance. We expect CVI revenues to grow more than 7% organically for the next three years. Our model anticipates total revenues of $2.75 billion for the CVI segment in fiscal 2025.The Cooper Companies also offers products for myopia management. MiSight is the key growth product in the company’s myopia management portfolio as it is the only FDA-approved contact lens for myopia control, especially in children.The company registered robust sales growth of 20% during the first quarter of fiscal 2025 from its myopia management portfolio. MiSight sales were up 27%. The positive trend for MiSight in the Americas and EMEA is likely to continue in fiscal 2025, with an expected growth rate of 40%. Moreover, sales in the Asia Pacific region are likely to improve going forward after a few challenging quarters.COO is also well-positioned to capitalize on its expanding CSI product portfolio. Strong demand for its products and services in the CSI portfolio, especially for fertility, persisted in the first quarter. The company expects CSI revenues to continue this trend in the rest of fiscal 2025 as well. It expects annual sales in the targeted market for CSI products and services, currently more than $3 billion, to grow 5-10% over the long term.The CSI portfolio demonstrated robust growth during the fiscal first quarter, with revenues increasing 3% year over year to $318.6 million. The fertility business led the performance, growing 1% year over year (3% organically), driven by strong demand for consumables, reproductive genetic testing and capital equipment.Key innovations, such as advanced genomics and AI-driven fertility solutions, further enhanced this segment, underscored by its success at the American Society of Reproductive Medicine Conference. Additionally, the office and surgical segment contributed $198.9 million in revenues, up 4%, supported by growth in minimally invasive gynecological surgical devices and labor and delivery products. Recent acquisitions, including that of obp Surgical, added momentum.Our model predicts CSI revenues to be $1.36 billion in fiscal 2025, indicating organic growth of 4.8% year over year.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.The Cooper Companies, Inc. Price The Cooper Companies, Inc. price | The Cooper Companies, Inc. QuoteEstimate TrendThe Zacks Consensus Estimate for the company's fiscal 2025 revenues is pegged at $4.12 billion, implying growth of 5.7% from the year-ago reported figure. The consensus mark for adjusted earnings per share is pinned at $3.98, indicating an improvement of 7.9% from the previous year’s recorded level.In the past 30 days, COO’s earnings estimate for fiscal 2025 has remained stable.Key PicksSome better-ranked stocks from the same medical industry are GENEDX HOLDINGS WGS, CVS Health CVS and Cencora COR.GENEDX, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 336% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.WGS’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 145.82%. WGS’ shares have lost 6.1% so far this year.CVS Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 12.2% for 2025.CVS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 18.08%. CVS’ shares have risen 42% year to date.Cencora, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 16.7% for 2025. COR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 6.00%. Its shares have gained 30.4% so far this year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CVS Health Corporation (CVS): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report GeneDx Holdings Corp. (WGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks