What Makes Cooper Companies (COO) an Investment Choice?

The London Company, an investment management company, released its fourth-quarter 2025 investor letter for its “The London Company Mid Cap Strategy”. A copy of the letter can be downloaded here. In Q4 2025, US equities posted the third consecutive quarter of higher returns, with the Russell 3000 Index rising 2.4%. The market highlighted how investors balanced the optimism on earnings growth and concerns regarding AI returns and cooling macroeconomic factors. In the quarter, the portfolio returned 3.2% (3.0% net) compared to a 0.2% increase in the Russell Midcap Index. Both stock selection and sector exposure contributed to the relative performance of the portfolio in the quarter. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, London Company Mid Cap Strategy featured stocks like Cooper Companies, Inc. (NASDAQ:COO). 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 3.83%, and its shares lost 8.17% of their value over the last 52 weeks. On February 24, 2026, The Cooper Companies, Inc. (NASDAQ:COO) stock closed at $83.56 per share, with a market capitalization of $16.612 billion.

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

"Initiated: The Cooper Companies, Inc. (NASDAQ:COO) – COO is a global medical device company operating two divisions: CooperVision (contact lenses, >65% of revenue) and CooperSurgical (women's healthcare products). CooperVision is a high-quality business with strong market share in an oligopolistic industry where four players control 95% of the market. The company benefits from a diverse product portfolio, high customer switching costs, and leading positions in faster-growing specialty lenses. Its private label business and deep customer relationships have driven above-market growth. Despite these strengths, margins trail peers due to a multi-year investment cycle and industry headwinds. However, significant margin expansion potential exists as capital spending moderates and capacity utilization improves. Recent share price weakness reflects cyclical pressures and execution missteps rather than fundamental deterioration. Activist involvement creates a catalyst for operational improvements and potential business separation. Valuation is attractive, with recent insider buying signaling confidence."

The Cooper Companies, Inc. (NASDAQ:COO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 53 hedge fund portfolios held The Cooper Companies, Inc. (NASDAQ:COO) at the end of the fourth quarter, compared to 56 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 SGA U.S. Large Cap Growth Strategy's views on the company. 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.