CooperCompanies is one of the largest eyecare companies in the US... Show more
The Cooper Companies (NASDAQ: COO) has been rebuilding from a sharp late-summer decline. After falling roughly 15% in a single session in early September, the stock found support near a 52-week low of $51.01 and has since climbed back toward the high-$50s. The shares remain roughly 20% below year-ago levels and trade near the lower end of a 52-week range that tops out around $89.83.
Sell-side sentiment has cooled in the wake of the guidance reset. Analysts tracked by S&P Global now carry a consensus "Hold" rating with an average 12-month price target near $65, reflecting a cautious but not uniformly bearish posture. With a market capitalization of roughly $11 billion, COO remains one of the larger diversified medical device names in the eyecare and women's health markets.
Founded in 1958 and headquartered in San Ramon, California, The Cooper Companies operates through two segments. CooperVision, the larger unit, designs and manufactures contact lenses and is one of the world's leading pure-play lens makers, holding a meaningful share of the U.S. market. Its portfolio spans daily disposable silicone hydrogel lenses, the MyDay franchise, and MiSight, a lens approved for slowing myopia progression in children.
CooperSurgical provides medical devices and services for women's health, with a particular focus on fertility. In the most recent quarter, CooperSurgical grew fertility revenue about 5%, supported by genomics and new clinic wins. Investors follow COO for its exposure to structurally growing eyecare and fertility end markets, its recurring revenue model, and its historically strong free cash flow generation.
The defining event of the period was the company's September 9, 2026, fiscal third-quarter report for the quarter ended July 31, 2026. Consolidated revenue rose about 1% to roughly $1.07 billion, while adjusted diluted earnings per share came in at $1.15, ahead of consensus. CooperVision revenue of about $717 million was essentially flat, and CooperSurgical revenue of about $349 million rose modestly.
The negative reaction stemmed from guidance rather than the quarter itself. Management trimmed full-year fiscal 2026 revenue guidance to roughly $4.23 billion to $4.25 billion and adjusted EPS to $4.51 to $4.55, both below the prior outlook and Wall Street estimates. Fourth-quarter adjusted EPS guidance of $1.05 to $1.09 sat well below the roughly $1.19 consensus. Executives attributed the shortfall primarily to a deliberate reduction in U.S. distributor inventory at CooperVision, framed as a reset ahead of fiscal 2027.
Compounding the disappointment, the board concluded a strategic review by deciding to retain CooperSurgical, removing a potential divestiture catalyst that some investors had anticipated. Separately, activist investor Jana Partners issued a public letter calling for a new chief executive and board chair and for an evaluation of asset sales. Several law firms announced investigations into the company's disclosures around demand, inventory, and guidance.
Not all signals were negative. The company posted record quarterly free cash flow of about $273 million, raised its share repurchase authorization from $2 billion to $3 billion, and reported a one-time tax benefit of roughly $307 million. Director Lawrence Kurzius also purchased about 10,000 shares in mid-September, a move some read as a vote of confidence in a turnaround.
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Several factors will shape COO's trajectory through the remainder of the fiscal year and into 2027. The most immediate is the company's fourth-quarter report, which will reveal whether the CooperVision inventory reset stays contained to a single quarter or extends further. Management has guided to flat-to-low-single-digit organic growth for the period, and the market will be watching whether underlying consumption, rather than channel shipments, supports a reacceleration in fiscal 2027.
Other items to monitor include an expected increase in the non-GAAP effective tax rate to roughly 17.5% in fiscal 2027, ongoing currency pressure, and the level of commercial investment needed to restore growth. At CooperSurgical, fertility demand, a new entrant in the non-hormonal IUD market, and fertility-related litigation settlements will influence sentiment. Finally, the activist campaign and any resulting changes to leadership, board structure, or capital allocation could affect the stock's direction, alongside the pace and scale of share repurchases under the expanded authorization.
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Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where COO declined for three days, in 202 of 334 cases, the price declined further within the following month. The odds of a continued downward trend are 60%.
The 10-day RSI Indicator for COO moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In 12 of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at 43%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 35 of 63 cases where COO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 56%.
COO broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Momentum Indicator moved above the 0 level on October 16, 2026. You may want to consider a long position or call options on COO as a result. In 41 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 46%.
COO moved above its 50-day moving average on November 02, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for COO crossed bullishly above the 50-day moving average on November 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 50%.
Following a +2.04% 3-day Advance, the price is estimated to grow further. Considering data from situations where COO advanced for three days, in 152 of 271 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.
The Aroon Indicator entered an Uptrend today. In 115 of 222 cases where COO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 52%.
The Tickeron Price Growth Rating for this company is 49 (best 1 - 100 worst), indicating fairly steady price growth. COO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 59 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.424) is normal, around the industry mean (4.964). P/E Ratio (21.283) is within average values for comparable stocks, (40.591). Projected Growth (PEG Ratio) (0.532) is also within normal values, averaging (4.143). Dividend Yield (0.000) settles around the average of (0.005) among similar stocks. P/S Ratio (2.526) is also within normal values, averaging (56.876).
The Tickeron SMR rating for this company is 80 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 85 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. COO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a maker of medical devices
Industry PharmaceuticalsOther