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The Zacks Medical - Dental Supplies industry in the Medical sector is reflecting weakness amid rising tariffs by the U.S. government on its trading partners, especially China. The tariffs are likely to stay and continue to impact industry sales for the rest of 2025, although several countries are negotiating a trade deal with the United States, which may lead to lower rates for specific countries. The tariffs are also leading to a rise in costs, disrupting supply chains and strategic supply shifts in the de ...

Core Viewpoint - The Cooper Companies (COO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending October 2025, The Cooper Companies is expected to earn $4.06 per share, with a 1.9% increase in the Zacks Consensus Estimate over the past three months [8]. Investment Implications - The upgrade to Zacks Rank 2 suggests that The Cooper Companies is positioned in the top 20% of Zacks-covered stocks based on earnings estimate revisions, indicating potential for market-beating returns [10]. - Rising earnings estimates and the corresponding rating upgrade signal an improvement in the company's underlying business, likely leading to increased stock prices [5][10].

Core Viewpoint - Investors in the Medical - Dental Supplies sector should consider The Cooper Companies (COO) and Straumann Holding AG (SAUHY) as potential value opportunities, with COO currently presenting a superior value option based on various valuation metrics [1][7]. Valuation Metrics - Both COO and SAUHY have a Zacks Rank of 2 (Buy), indicating an improving earnings outlook due to positive analyst estimate revisions [3]. - COO has a forward P/E ratio of 17.61, while SAUHY has a higher forward P/E of 30.20 [5]. - The PEG ratio for COO is 1.74, suggesting a more favorable valuation relative to its expected earnings growth compared to SAUHY's PEG ratio of 2.11 [5]. - COO's P/B ratio stands at 1.72, significantly lower than SAUHY's P/B ratio of 8.76, indicating that COO is more undervalued in terms of market value versus book value [6]. - Based on these valuation metrics, COO holds a Value grade of B, while SAUHY has a Value grade of D, further supporting the conclusion that COO is the better value option [6].

Company Overview - CooperCompanies is a leading global medical device company with a focus on enhancing people's lives through its two business units: CooperVision and CooperSurgical [3] - CooperVision specializes in the contact lens industry, while CooperSurgical is dedicated to fertility and women's healthcare [3] - The company is headquartered in San Ramon, California, employs over 16,000 people, and sells products in more than 130 countries, positively impacting over fifty million lives annually [3] Upcoming Financial Results - CooperCompanies will report its third quarter 2025 financial results on August 27, 2025, at 4:15 PM ET [1] - A conference call to discuss the results and corporate developments will follow at 5:00 PM ET [1] Conference Call Details - The dial-in number for the conference call is 800-715-9871, and the conference ID is 3665386 [2] - An audio webcast and subsequent replay will be available at the company's investor relations website [2]

Investment Rating - The report maintains a "Buy" rating for Boston Scientific (BSX), Edwards Lifesciences (EW), GE Healthcare (GEHC), Intuitive Surgical (ISRG), and Haemonetics (HAE), while downgrading Tandem Diabetes (TNDM) to "Sell/High Risk" from "Neutral/High Risk" [1][5][20]. Core Insights - The MedTech sector has shown resilience against healthcare headwinds, with a focus on returning to fundamentals and several catalysts expected to drive momentum in the second half of 2025 [1][9]. - The S&P Equipment and Supplies Index has outperformed the broader market, with a year-to-date increase of 7.2%, while relative P/E multiples remain below historical averages [2][12]. - Key upcoming catalysts include product launches and data readouts from various companies, which are anticipated to influence stock performance positively [3][10][11]. Summary by Sections Market Overview - The MedTech industry has largely absorbed tariff impacts, with a weakening USD providing additional support [1][9]. - The S&P 500 is up 6.2% year-to-date, while the S&P Equipment and Supplies Index has increased by 7.2% [2][12]. Company-Specific Insights - Boston Scientific (BSX) is expected to benefit from Farapulse and new product launches, projecting a revenue increase of 80.1% year-over-year in 2Q25 [3][10]. - Edwards Lifesciences (EW) anticipates pivotal data releases and the reopening of TAVR NCD, which could enhance its market position [3][10]. - Intuitive Surgical (ISRG) plans a broad launch of its DV5 system, which is expected to drive stock performance [4][10]. - Haemonetics (HAE) has been upgraded to "Buy" due to improved guidance and revenue growth expectations [5][20]. - Tandem Diabetes (TNDM) faces competitive pressures, leading to its downgrade to "Sell/High Risk" [5][20]. Valuation and Target Prices - Target prices have been adjusted for several companies, with BSX at $125, EW at $95, GEHC at $86, and ISRG at $650 [20][21]. - The report highlights that the relative P/E multiple for the MedTech sector is currently at 1.14x, below historical averages, indicating potential undervaluation [2][12][14].

Core Insights - The Cooper Companies, Inc. (COO) is focusing on strategic investments in innovation and has a diversified product base that supports long-term growth, although it faces near-term macro and inventory challenges, particularly in fertility and global consumer spending [1] Financial Performance - COO's shares have decreased by 20.8% this year, while the industry has gained 0.6% and the S&P 500 Index has increased by 4.9% [2] - The company has a market capitalization of $14.23 billion and is expected to see a 10.1% improvement in its bottom line over the next five years [2] - COO's adjusted earnings per share (EPS) increased by 14% year over year to 96 cents, with an operating margin expansion to 24.9% due to efficiency gains and disciplined cost management [4][7] Product Innovation - The MyDay daily silicone hydrogel lenses and MySight myopia management products are experiencing significant growth, with increases of 10% and 35% year over year, respectively [5] - Continued expansion in toric and multifocal ranges, along with new product launches like MyDay Energys, indicates sustained future revenue momentum [5] Surgical Portfolio Strength - CooperSurgical reported an 8% revenue growth, driven by a 13% increase in office-based surgical devices and an 18% rise in PARAGARD IUD sales, providing diversification against near-term fertility pressures [6] Challenges - Fertility revenue growth has slowed to 3%, with declines in Asia Pacific and deferred capital spending by clinics, leading to revised low-single-digit growth expectations for the fertility segment in fiscal 2025 [8] - Channel inventory reductions and patients opting for shorter-term lens supplies are impacting revenue visibility, despite strong underlying demand [9] - COO anticipates a $4 million tariff impact on fiscal 2025 COGS and a 3% EPS headwind in fiscal 2026 due to ongoing tariff and foreign exchange risks [10] Revenue Estimates - The Zacks Consensus Estimate for fiscal 2025 revenues is $4.12 billion, reflecting a 5.7% growth from the previous year, with adjusted EPS expected to improve by 10% to $4.06 [11]

Financial Performance & Guidance - CooperCompanies' FY24 revenue reached $3.9 billion[6] - The company anticipates FY25 total revenue between $4.107 billion and $4.146 billion[10] - CooperVision's FY24 revenue was $2.6 billion[18], with FY25 guidance between $2.759 billion and $2.786 billion[10] - CooperSurgical's FY24 revenue was $1.29 billion[22], with FY25 guidance between $1.347 billion and $1.359 billion[10] - CooperCompanies projects organic growth of 5%-6% for FY25[10] Market Position & Growth - The global soft contact lens market is an $11 billion market[12] - CooperVision holds 26% of the contact lens market share[13] - The fertility market is estimated to be over $2 billion globally[27] and has historically grown at 5-10% annually[27] - CooperSurgical has grown through 40+ acquisitions since 1990[24] Business Segments - Toric and multifocal lenses account for 48% of CooperVision's revenue[18] - Fertility products and services comprise 40% of CooperSurgical's revenue, while office and surgical products make up 60%[22]

Group 1: Copart Inc. (NASDAQ: CPRT) - Copart's stock has experienced a significant decline, dropping over 21% from its all-time highs, with the Relative Strength Index (RSI) falling to 21, indicating it is deeply oversold and may be poised for a bounce [3][4]. - The recent plunge in Copart's stock price was attributed to an underwhelming earnings report, despite the company achieving its highest-ever revenue, which led to concerns that expectations had outpaced fundamentals [4][5]. - Analysts maintain a Neutral rating on Copart, with a price target of $55, suggesting that the stock is currently trading below its fair value, presenting an attractive risk/reward scenario [5]. Group 2: Cooper Companies Inc. (NASDAQ: COO) - Cooper Companies' stock has been on a downward trend, hitting multi-month lows with an RSI in the low 20s, indicating oversold conditions [7]. - Following a strong earnings report that exceeded expectations and reaffirmed full-year guidance of 10-15% EPS growth, the stock saw a nearly 6% increase in one day, with the RSI beginning to rise [8][9]. - Analysts have a 12-month price forecast of $100.38 for Cooper Companies, indicating a potential upside of 38.77% from the current price of $72.33 [6]. Group 3: UnitedHealth Group Inc. (NYSE: UNH) - UnitedHealth's stock has declined over 50% from its April highs due to disappointing earnings and negative market sentiment [10]. - Despite bearish trends, the stock has shown signs of stabilization, with the RSI remaining below 30 and a bullish crossover in the MACD, indicating potential for recovery [11]. - Analysts have reiterated positive ratings, with KeyCorp maintaining an Overweight rating and a price target of $400, suggesting a potential upside of over 35% from current levels [12].

Summary of The Cooper Companies (COO) FY Conference Call - June 05, 2025 Company Overview - The Cooper Companies is a global medical device company with approximately two-thirds of its business in contact lenses and one-third in women's health, primarily focusing on fertility [3][4] - The company operates in over 30 countries with a revenue mix of more than half generated outside the U.S. [5] Core Business Insights - Cooper is a leader in the fertility market, with 40% of its surgical business related to fertility [4] - The company is experiencing secular growth trends in both vision and surgical segments, with a commitment to growing faster than the market [7][8] - CooperVision is projected to grow by 6-7% this year, while the market is expected to grow by 4-6% [8] Financial Performance and Guidance - The company aims for gross margin and operating margin expansion, despite facing foreign exchange (FX) headwinds since 2019 [9] - Free cash flow is projected to be between $350 million and $400 million, with a goal to improve free cash flow margin over the coming years [10][11] - The company has a history of consistent growth, with the exception of 2020 during COVID-19 [7] Market Dynamics - The contact lens market grew by 7% last year, with a fourth-quarter growth of 9%, but the company believes the actual growth is closer to 6% due to inventory dynamics [12][13] - Competitors like J&J and Alcon reported mid-single-digit growth, leading Cooper to adjust its market growth expectations to 4-6% [14] - Fitting activity remains strong, with consumers preferring premium products, particularly in the MyDay portfolio [17][20] Product Innovations - Cooper offers a differentiated portfolio, including myopia control products that are unique in the market [6] - The MyDay product line includes a wide range of toric and multifocal lenses, with the recent launch of Energous, which provides a digital boost for myopic users [23][24] - The company plans to launch MiSight, a myopia control lens, in Europe next year, which is expected to drive significant growth [25][30] Strategic Initiatives - Cooper is focusing on expanding its production capacity and improving operational efficiencies to leverage past investments [48][50] - The company is prioritizing free cash flow towards debt reduction and has engaged in stock buybacks due to perceived undervaluation [51][52] - The surgical segment is expected to see mid-single-digit growth as the fertility market rebounds [58][59] Future Outlook - The company anticipates that the contact lens market will continue to grow at 4-6% next year, with CooperVision expected to outperform this growth [57] - The surgical business is also projected to recover, contributing to overall revenue growth [59] - Cooper is optimistic about the potential for increased free cash flow due to reduced capital expenditures and improved operational performance [61][62] Additional Insights - The company is actively working on integrating its surgical and vision businesses to drive better margin expansion [49] - There is a focus on educating healthcare professionals and consumers about myopia control products, particularly in new markets like Japan [39][40] This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic direction, market dynamics, and financial outlook.