Cooper Companies Seeks Growth Amid Stock Struggles

Headquartered in San Ramon, California, The Cooper Companies, Inc. (COO) stands as a prominent name in the medical devices sector. With a market capitalization of $20.6 billion, the company focuses on providing contact lenses and surgical products, playing a vital role in eye care and women’s health worldwide.

Stock Performance Lags Behind Major Indices

In the past year, Cooper Companies’ stock performance has notably lagged behind the broader market. The stock gained 23.5% during this period, whereas the S&P 500 Index ($SPX) surged nearly 31.8%. In 2024 alone, shares have increased by 9.3%, contrasting with the S&P 500’s impressive 25.8% rise year-to-date.

Challenges Against Industry Peers

Focusing further on the sector, Cooper Companies has struggled to keep pace with the SPDR S&P Health Care Equipment ETF (XHE). Over the past year, this exchange-traded fund achieved a 25% gain and an 11.3% increase year-to-date.

Strong Earnings Provide a Boost

A recent surge of 11.8% in Cooper Companies’ stock followed the announcement of better-than-expected Q3 earnings on August 28. The company reported a 7.8% year-over-year growth in net sales, reaching $1 billion, and raised its full-year guidance, bolstering investor confidence.

Positive Earnings Forecasts and Analyst Ratings

For the current fiscal year concluding in October, analysts project a 14.1% year-over-year growth in COO’s earnings per share (EPS) to $3.65 on a diluted basis. The company has a solid track record of performance, consistently meeting or exceeding consensus earnings estimates across the last four quarters.

A survey of 15 analysts covering COO stock reveals a consensus rating of “Strong Buy,” supported by 11 “Strong Buy” ratings and four “Holds.”

Analyst Insights and Price Predictions

On November 27, Needham analyst David Saxon maintained the “Hold” rating on Cooper Companies. The average price target stands at $117.46, reflecting a 13.6% premium from current levels. Notably, the highest price target of $130 indicates an upside potential of 25.7%.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. To learn more, please see the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.