What Makes The Cooper Companies (COO) an Investment Bet?

Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their rally in the third quarter, with US stocks gaining over 8% as measured by the Russell 3000 Index. Small-cap stocks experienced the strongest quarterly performance, rising by more than 12%, whereas large-cap stocks increased by about 8%, and mid-cap stocks saw a gain of 5%. The strategy underperformed the Russell Midcap Index in the third quarter, returning 4.49% net vs. 5.33% for the Index. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Diamond Hill Mid Cap Strategy highlighted stocks such as The Cooper Companies, Inc. (NASDAQ:COO). The Cooper Companies, Inc. (NASDAQ:COO) manufactures and markets contact lenses that operate through CooperVision and CooperSurgical segments. The one-month return of The Cooper Companies, Inc. (NASDAQ:COO) was 8.74%, and its shares lost 10.29% of their value over the last 52 weeks. On December 30, 2025, The Cooper Companies, Inc. (NASDAQ:COO) stock closed at $82.47 per share, with a market capitalization of $16.396 billion.

Diamond Hill Mid Cap Strategy stated the following regarding The Cooper Companies, Inc. (NASDAQ:COO) in its third quarter 2025 investor letter:

"Though markets have continued rising throughout the year, we have continued finding individual companies whose prices we believe are not reflective of their long-term growth outlooks. Accordingly, we initiated several new positions in Q3, including Toro Company, Equitable Holdings, The Cooper Companies, Inc. (NASDAQ:COO) and Revvity.

Cooper Companies is a medical devices company operating CooperVision, a global leader in contact lenses, and CooperSurgical, a leader in women’s health and fertility care. We anticipate the contact lens industry will remain healthy and has an ample runway for growth as customers trade up for higher quality lenses. Further, Cooper Companies has an opportunity to take modest share in the contact lens business. CooperSurgical currently faces cyclical headwinds but operates in an end market that should benefit from several secular tailwinds. The company recently made heavy investments in manufacturing capacity. Given the appealing outlook, we capitalized on slower revenue growth in both CooperSurgical and CooperVision, which we view as transitory, to initiate a position."

The Cooper Companies, Inc. (NASDAQ:COO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 56 hedge fund portfolios held The Cooper Companies, Inc. (NASDAQ:COO) at the end of the third quarter, up from 48 in the previous quarter. In the fourth quarter of fiscal 2025, The Cooper Companies, Inc.'s (NASDAQ:COO) consolidated revenues were up 4.6% year over year to a quarterly record $1.065 billion. While we acknowledge the potential of The Cooper Companies, Inc. (NASDAQ:COO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered The Cooper Companies, Inc. (NASDAQ:COO) and shared Meridian Growth Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.