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.

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.