The Cooper Companies (COO) Moved Higher as Multiple Tailwinds Align

Sustainable Growth Advisers (SGA), an investment management company, released its fourth-quarter investor letter for its “U.S. Large Cap Growth Strategy.” A copy of the letter can be downloaded here.  In Q4 2025, the Portfolio returned 0.3% (Gross) and 0.2% (Net) compared to 1.1% return for the Russell 1000 Growth Index and 2.7% gain for the S&P 500 Index. Rising volatility, coupled with broadening market leadership, improved the portfolio’s relative performance in the second half of the quarter. In 2025, the Portfolio faced its most challenging years since the firm's inception in 2003. After a challenging year, the firm is encouraged by the robust growth potential in its portfolio and its historically attractive relative valuation. Progressing further, the portfolio is well-positioned to gain from a shift away from high momentum dynamics in U.S. markets and a broadening of market leadership. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, SGA U.S. Large Cap Growth Strategy featured Cooper Companies, Inc. (NASDAQ:COO) as a notable contributor. The Cooper Companies, Inc. (NASDAQ:COO) is a medical device company that operates through CooperVision and CooperSurgical segments. The one-month return of The Cooper Companies, Inc. (NASDAQ:COO) was -0.27%, and its shares lost 12.81% of their value over the last 52 weeks. On February 9, 2026, The Cooper Companies, Inc. (NASDAQ:COO) stock closed at $81.48 per share, with a market capitalization of $16.199 billion.

SGA U.S. Large Cap Growth Strategy stated the following regarding The Cooper Companies, Inc. (NASDAQ:COO) in its fourth quarter 2025 investor letter:

"The Cooper Companies, Inc. (NASDAQ:COO) was a top contributor during the quarter after reporting good operating results and announcing several shareholder friendly developments. In terms of operating results, the company demonstrated progress in alleviating supply constraints for its premium daily silicone hydrogel contact lenses, announced new private label contract wins in the U.S. and Europe, and delivered innovation in myopia control and multifocal lens platforms. In addition, CooperSurgical showed sequential improvement, despite some macro headwinds in Asia Pacific.

In terms of shareholder-friendly developments, we were pleased to see progress made by the company to better align with long-term value creation, such as incorporating total shareholder return and free cash flow metrics in management compensation incentives after receiving feedback from shareholders such as ourselves. In addition, long-term free cash flow guidance was raised. Lastly, the company announced a review of strategic options for its women’s health business and the addition of Steris CEO Emeritus Walter Rosebrough, a business leader we know well and hold in high regard, to its board of directors. These positive developments are consistent with feedback we have provided management as part of our ongoing engagement with the company, including a recent meeting with newly promoted board Chairwoman Colleen Jay.

While the company faced some near-term challenges, Cooper’s broad product portfolio, strong market position, and ongoing innovation provide attractive long-term growth opportunities and we believe the company is taking active steps in the present to realize those opportunities. We trimmed the position on strength following the stock’s recovery during the quarter and maintained an average weight."

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. 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 Diamond Hill Large Cap Fund's views on the company last quarter. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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