Investors with an interest in Medical - Dental Supplies stocks have likely encountered both The Cooper Companies (COO) and West Pharmaceutical Services (WST) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a prove ...

Company Overview - Cooper Companies was founded in 1958 and has been listed on the S&P 500 since 2016 [1] - The company operates under two main business units: CooperVision and CooperSurgical [1] - CooperVision is the leading contact lens company globally, ranked 1 in terms of wearers and 2 in revenue [1] - CooperSurgical specializes in fertility and women's health care, focusing on non-pharmaceutical medical devices [1] Employee and Market Reach - The company employs over 15,000 individuals worldwide [2] - More than 50 million people use Cooper's products, including contact lenses and women's health care products [2] - Approximately 42 million patients annually wear Cooper's contact lenses [2] - CooperVision accounts for about two-thirds of the company's consolidated revenues [2]

Summary of The Cooper Companies FY Conference Call Company Overview - **Company**: The Cooper Companies (NasdaqGS: COO) - **Founded**: 1958 - **S&P 500 Inclusion**: Since 2016 - **Business Units**: - **CooperVision**: Leading contact lens company, number one in wearers and number two in revenue - **CooperSurgical**: Focused on fertility and women's healthcare, leading in non-pharma medical devices [1][2] Key Financial Metrics - **Employees**: Over 15,000 globally - **Product Users**: Over 50 million, with 42 million annual contact lens wearers - **Revenue Composition**: CooperVision accounts for about two-thirds of consolidated revenues - **Historical Revenue Growth**: 10-year growth rate of 8.6% [2][3] Growth Insights - **CooperVision Growth**: Primarily organic growth at 6.3%, with the contact lens market growing mid-single digits annually - **CooperSurgical Growth**: Approximately 16%, driven by acquisitions [3][4] - **Market Trends**: - Contact lens market growth projected at 4%-6% annually - Fertility market growth in mid-single digits, with potential for double-digit growth in the past [4][13] Financial Guidance - **Non-GAAP EPS Guidance**: $1.02-$1.04 for Q1 and $4.45-$4.60 for the full year - **Free Cash Flow Guidance**: $5.75-$6.25 billion, with expectations of $2.2 billion in free cash flow over the next fiscal year [5][6] Strategic Priorities - **Focus on Organic Growth**: Transitioning from heavy investment to driving organic growth and operational efficiency - **Cost Management**: Significant reorganization to reduce costs and improve operational efficiency [7][9] - **AI Integration**: Utilizing AI for inventory optimization and management [10] Market Dynamics - **Contact Lens Market**: - 35% of the global population is myopic, projected to reach 50% by 2050 - Major competitors: J&J (36% market share), CooperVision (27%), Alcon (25%) [13][14] - Shift towards daily lenses driving revenue growth, with daily wearers generating 2.5 times more revenue than monthly wearers [15][16] - **Fertility Market**: - Global market valued at approximately $3 billion, with one in six experiencing infertility - Growth driven by delayed childbirth and increasing insurance support for fertility treatments [26][27] Product Innovations - **New Product Launches**: - MiSight: FDA-approved contact lens for myopia management - MyDay MiSight: Daily silicone hydrogel lens with myopia control technology [21][22][24] - **Expansion Plans**: Launching new products in Europe and Asia, including MyDay Energys and MyDay Multifocal [24][25] Capital Allocation Strategy - **Share Repurchase Program**: Increased from $1 billion to $2 billion, with plans to consistently allocate a portion of free cash flow to buybacks [11][33] - **Investment Focus**: Transitioning from acquisitions to leveraging past investments for growth and shareholder value [11][33] Market Outlook - **2026 Guidance**: Expectation of improved performance in both CooperVision and CooperSurgical, with a focus on regaining traditional growth rates in the fertility market [45][46] - **Regional Performance**: Strong consumer behavior in the Americas, with challenges in Asia-Pac but expected improvements [47][48] Strategic Review - **Ongoing Evaluation**: Conducting a strategic review to assess the potential separation of CooperVision and CooperSurgical, considering synergies and market positioning [36][38][39] Conclusion - **Overall Sentiment**: Positive outlook on growth opportunities in both contact lens and fertility markets, with a strong focus on operational efficiency and shareholder value creation [30][33]

Company Overview - CooperCompanies is a leading global medical device company with FY25 revenue of $41 billion[7] - The company's products are sold in more than 130 countries and it has over 15000 employees in 45+ countries[7] - CooperCompanies operates through two business units: CooperVision (CVI) and CooperSurgical (CSI)[7] Financial Performance and Guidance - CooperCompanies' total revenue has more than doubled in the last decade, with a CAGR of 86% from 2015 to 2025[9] - The company provides FY26 revenue guidance of $4299 - $4338 million, with organic growth of 45% - 55%[10] - CooperVision's FY26 revenue guidance is $2900 - $2925 million, with organic growth of 45% - 55%[10] - CooperSurgical's FY26 revenue guidance is $1399 - $1413 million, with organic growth of 4% - 5%[10] - Non-GAAP EPS guidance for FY26 is $445 - $460[10] - The company targets free cash flow of $575 - $625 million for FY26[10] Market Position and Strategy - CooperVision is the 1 contact lens company in the world in terms of wearers[22] - The global soft contact lens market is an $11 billion market growing at 4-5% annually[16, 18] - CooperSurgical is a leading fertility company in the medical device industry, addressing a ~$3 billion global market with 4-6% annual growth[34]

Core Viewpoint - Investors in the Medical - Dental Supplies sector should consider The Cooper Companies (COO) and West Pharmaceutical Services (WST) for potential investment opportunities, with a focus on which stock is more appealing to value investors [1] Group 1: Zacks Rank and Earnings Outlook - The Cooper Companies has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to West Pharmaceutical Services, which has a Zacks Rank of 3 (Hold) [3] - The improvement in earnings outlook for COO is likely more significant than that of WST [3] Group 2: Valuation Metrics - COO has a forward P/E ratio of 18.52, while WST has a forward P/E of 35.98, suggesting that COO may be undervalued relative to WST [5] - The PEG ratio for COO is 2.38, compared to WST's PEG ratio of 3.80, indicating that COO has a more favorable growth outlook relative to its valuation [5] - COO's P/B ratio is 2.01, while WST's P/B ratio is significantly higher at 6.5, further suggesting that COO is a better value option [6] Group 3: Value Grades - Based on various valuation metrics, COO holds a Value grade of B, whereas WST has a Value grade of D, reinforcing the notion that COO is the more attractive option for value investors [6]

Core Viewpoint - NexMetals Mining Corp. has appointed Warwick Morley-Jepson to its board of directors and as Co-Chair of the newly formed Safety, Sustainability and Technical Committee, which is seen as a strategic move to enhance the company's project development and operational capabilities [1][3]. Company Overview - NexMetals Mining Corp. is a mineral exploration and development company listed on TSXV and NASDAQ, focusing on redeveloping the Selebi and Selkirk copper-nickel-cobalt-platinum group element mines in Botswana [4]. - The company has confirmed that the scale of mineralization at its projects is larger than historical estimates, supported by NI 43-101-compliant resource estimates, and is currently engaged in down-hole geophysics, drilling, and metallurgical programs to expand resources [4]. Leadership and Experience - Warwick Morley-Jepson brings over 40 years of experience in the mining sector, having held senior operational and project development roles in notable global mining companies, including Kinross Gold Corporation and Ivanhoe Mines [2]. - His recent experience includes serving as Chairman and Interim CEO at Wesdome Gold Mines, which adds significant leadership expertise to NexMetals [2]. Strategic Importance - The addition of Morley-Jepson to the board is considered timely as the company aims to optimize its path forward for the Selebi and Selkirk assets, with his leadership expected to be critical in guiding key project decisions [3].

Market Performance - US stocks gained over 8% in the third quarter of 2025, as measured by the Russell 3000 Index, with small-cap stocks rising more than 12% [1] - Large-cap stocks increased by about 8%, while mid-cap stocks saw a gain of 5% [1] Diamond Hill Mid Cap Strategy Performance - The strategy underperformed the Russell Midcap Index in Q3 2025, returning 4.49% net compared to 5.33% for the Index [1] The Cooper Companies, Inc. Overview - The Cooper Companies, Inc. (NASDAQ:COO) manufactures and markets contact lenses through its CooperVision and CooperSurgical segments [2] - The one-month return for The Cooper Companies, Inc. was 8.74%, but its shares lost 10.29% of their value over the last 52 weeks [2] - As of December 30, 2025, the stock closed at $82.47 per share, with a market capitalization of $16.396 billion [2] Investment Insights - The Diamond Hill Mid Cap Strategy initiated several new positions in Q3 2025, including The Cooper Companies, Inc. [3] - Despite the overall market rise, the company is viewed as undervalued relative to its long-term growth outlook [3] - The Cooper Companies, Inc. had consolidated revenues up 4.6% year over year to a quarterly record of $1.065 billion in Q4 2025 [4] - The number of hedge fund portfolios holding The Cooper Companies, Inc. increased from 48 to 56 in the third quarter [4]

Core Insights - The Cooper Companies, Inc. (COO) is experiencing growth driven by CooperVision's premium lens migration and MiSight's leadership in myopia management, alongside CooperSurgical's women's health and fertility portfolio [1] - Near-term performance is impacted by channel volatility, private-label transition risks, softness in the Asia-Pacific region, and tariff/foreign exchange pressures, although long-term opportunities remain robust [1] Financial Performance - COO's shares have increased by 15.5% over the past six months, outperforming the industry growth of 12.9% and the S&P 500 Index's increase of 14.5% [2] - The company has a market capitalization of $16.19 billion and is expected to see a 7.8% improvement in its bottom line over the next five years, with earnings beating estimates in three of the last four quarters [4] Growth Drivers - CooperVision's MyDay daily silicone hydrogel franchise is a key growth engine, with strong global rollout and uptake in various lens types, supported by expanding private-label contracts [5] - Capacity constraints in Asia-Pacific have been resolved, allowing for improved execution and higher revenues per patient, despite lower gross margins from daily silicone hydrogel lenses [6] - MiSight, the only FDA-approved contact lens for myopia control, reported 37% growth in Q4 and nearly $104 million in sales for fiscal 2025, with management guiding for 20-25% growth in fiscal 2026 [7] Operational Improvements - A recent reorganization is expected to yield nearly $50 million in annual pretax savings starting in fiscal 2026, enhancing cash flow and operational efficiency [10] - Operating margins expanded to 27% in Q4, with further improvements anticipated, while free cash flow reached $150 million, raising the cumulative target for fiscal 2026-2028 to over $2.2 billion [11] Capital Allocation - The company emphasizes shareholder returns, having repurchased nearly $300 million of stock in fiscal 2025, with plans for similar allocations in fiscal 2026 supported by a $2 billion authorization [12] - Free cash flow is projected to rise to $575-$625 million in fiscal 2026 as capital expenditures normalize, improving net leverage to 1.76x [12] Challenges - Gross margin pressures persist due to the mix shift towards lower-margin daily silicone hydrogel lenses and ongoing tariff impacts, with management guiding for further declines in fiscal 2026 [13][14] - The Asia-Pacific region, particularly China, saw a 28% decline in Q4 due to weaknesses in low-margin e-commerce channels, with management prioritizing profitability over volume [15] - Fertility demand in the CooperSurgical segment remains sensitive to consumer spending, leading to conservative guidance for the next fiscal year despite early signs of improvement [16] Revenue Estimates - The Zacks Consensus Estimate for fiscal 2026 revenues is $4.31 billion, reflecting a 5.3% growth from the previous year, with adjusted EPS expected to improve by 9.5% to $4.51 [17]

Core Viewpoint - CooperCompanies has appointed Walter (Walt) M Rosebrough, Jr. as an independent director and entered into a cooperation agreement with Browning West, aiming to enhance governance and drive long-term value for shareholders [1][3]. Group 1: Appointment and Governance - Walter Rosebrough will join the Board's Corporate Governance & Nominating Committee and is being considered for the Chair position by the end of 2026 [1]. - The Board will also appoint a new independent director with medical technology experience, in agreement with Browning West [1]. Group 2: Background of Walter Rosebrough - Rosebrough served as CEO of STERIS from 2007 to 2021, achieving a 10-fold total return on stock and an 18% annualized return, compared to a 10% annualized return for the S&P 500 [2]. - His career includes nearly two decades at Hill-Rom Holdings, where he held senior executive roles [2]. Group 3: Strategic Vision and Cooperation - Colleen Jay, the Incoming Chair of the Board, emphasized Rosebrough's leadership experience and track record in supporting sustainable growth [3]. - Browning West expressed confidence in Cooper's long-term potential and the constructive path forward with the Board [3]. - Browning West has agreed to customary standstill and voting commitments and will support the Board's full slate of directors at the 2026 Annual Meeting [3]. Group 4: Company Overview - CooperCompanies is a global medical device company with two business units: CooperVision and CooperSurgical, impacting over fifty million lives annually [4]. - The company is headquartered in San Ramon, CA, employs over 15,000 people, and sells products in over 130 countries [4]. Group 5: About Browning West - Browning West is an independent investment partnership focused on long-term value creation in high-quality businesses, primarily in North America and Western Europe [5]. - Founded in 2019, it is backed by leading foundations, family offices, and university endowments [5].

Core Insights - The Cooper Companies, Inc. (COO) is showing potential for a bullish breakout as it has reached a key level of support and experienced a "golden cross" in its moving averages [1] - The stock has gained 16% over the past four weeks, indicating positive momentum [3] - The Zacks Rank for COO is currently 2 (Buy), suggesting further potential for price increases [3] Technical Analysis - A "golden cross" occurs when a stock's 50-day simple moving average crosses above its 200-day simple moving average, signaling a potential bullish trend [1] - The formation of a golden cross involves three stages: a downtrend that bottoms out, a crossover of the shorter moving average over the longer one, and continued upward momentum [2] Earnings Expectations - There have been four upward revisions in earnings expectations for COO in the current quarter, with no downward revisions, indicating strong investor confidence [3] - The Zacks Consensus Estimate for COO has also increased, further supporting the bullish outlook [3] Investment Outlook - The combination of positive earnings estimate revisions and the technical "golden cross" suggests that investors should monitor COO for potential gains in the near future [5]