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HOLX vs. COO: Which GYN Surgical Stock Is the Better Investment Now?
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Key Takeaways
HOLX Surgical sales rose 16.2% internationally, led by MyoSure and the new Fluent Pro system.
COO saw Paragard and obp Surgical growth, while fertility remains weak in the Asia-Pacific.
Analysts expect 2025 EPS to grow 2.7% for HOLX and 10% year over year for COO.
As more women seek surgical procedures for gynecological conditions, demand for specialized surgical instruments is growing, bolstering the outlook of the Gynecological Surgical Instruments (GYN Surgical) market. Investors are watching companies with strong exposure in this space, such as Hologic (HOLX - Free Report) and CooperCompanies (COO - Free Report) .
Marlborough, MA-based Hologic provides a range of minimally invasive treatment options for treating abnormal uterine bleeding and fibroids. CooperSurgical — the San Ramon, CA-based women’s healthcare arm of COO — offers fertility and gyn surgical products used in Obstetricians/Gynecologists (OB/GYN) offices, hospitals, ambulatory surgery centers and fertility clinics and also sells directly to consumers.
Both companies have diversified business models. Hologic also operates through Diagnostics, Breast Health and Skeletal Health, while COO’s CooperVision unit is a global leader in soft contact lenses. Let’s compare these two stocks to find out which one offers a more compelling investment case now.
Hologic: Key Strengths and Challenges
The company’s Surgical business is leading the overall growth, with the International business growing 16.2% in the second quarter of fiscal 2025. This was supported by ongoing market development and increased awareness for its minimally invasive GYN products, including MyoSure. The Fluent Pro system, launched in late 2024, is gaining traction from MyoSure’s improving performance and user experience. Meanwhile, the recent purchase of Gynesonics is expected to support high-single-digit growth for the Surgical unit this year.
Across segments, Hologic benefits from multiple durable growth drivers. The BV/CV/TV assay in molecular diagnostics addresses a major gap in U.S. vaginitis testing, with fewer than 40% of 20 million affected women being tested annually, mostly with older manual techniques. Biotheranostics continues to see strong adoption of the Breast Cancer Index test, which helps determine if continued endocrine therapy is necessary. Hologic’s Genius AI cytology system is seeing solid U.S. uptake.
In Breast Health, Hologic is facing a soft capital equipment market this year while gaining from steady recurring service revenues from its gantry installed base. The Endomagnetics acquisition significantly boosted its interventional breast portfolio. Meanwhile, Skeletal Health posted 22.9% growth in the second quarter due to accelerated DXA system production ramp-up.
Hologic’s strong profitability allows it to execute both tuck-in M&A and share buybacks. Still, external pressures remain. Tariffs tied to its manufacturing operations in Costa Rica and China are likely to raise inventory acquisition costs by $20-$25 million per quarter. Additionally, USAID funding cuts and China’s geopolitical landscape have weighed on its outlook.
The Case for CooperCompanies
CooperSurgical unit is gaining from strength in the surgical medical devices, labor and delivery portfolio. Paragard, its contraceptive intrauterine device, grew 18% in the second quarter of fiscal 2025, supported by the end of buy-in activity ahead of a May 1 price increase and interest in its new single-hand inserter. Management now expects a mid-teens decline in the third quarter and a flat fourth quarter, resulting in low to mid-single-digit growth for the full fiscal year.
The fertility business remains soft, particularly in Asia-Pacific, but strong underlying growth fundamentals keep the long-term prospects bullish. The office and surgical category also holds solid potential due to the demand for minimally invasive GYN surgical devices like the Ally uterine manipulator portfolio and Fetal Pillow. CooperSurgical’s recent acquisition, obp Surgical, grew 31% in the second quarter.
Within CooperVision, MiSight 1 day lens is leading the way for the myopia management portfolio, while MyDay displays momentum in torics, multifocals and Energys offerings. CooperCompanies is expanding MyDay’s availability in new markets and channels to capitalize on opportunities from greater penetration into existing accounts and with new customers. Clariti’s redesigned multifocal, mirroring MyDay design, is gaining traction for its comfort, easy handling and affordability. In frequent replacement lenses, Biofinity remains the most widely worn contact lens worldwide.
Financially, CooperCompanies remains well-positioned, with a rebound in free cash flow expected in the second half of the year. COO management plans to prioritize debt reduction with the proceeds while remaining open to opportunistic share repurchases. However, tariffs are expected to add roughly $4 million to the cost of goods this year. The impact of foreign currency may result in a 0.5% drag on revenues and 1% on earnings.
Estimate Trend for HOLX and COO
The Zacks Consensus Estimate for Hologic’s fiscal 2025 EPS implies a year-over-year improvement of 2.7%. Estimates have been trending south in the last 90 days. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Image Source: Zacks Investment Research
Analysts are turning more bullish on CooperCompanies, given the upward EPS estimate revisions in the last 90 days. The consensus mark implies 10% year-over-year growth.
Image Source: Zacks Investment Research
Price Performance & Valuation: HOLX & COO
Year to date, Hologic shares have fallen 10.5%, while CooperCompanies shares have lost 24.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Hologic is currently trading at a five-year price-to-sales (P/S) of 3.40X and CooperCompanies at 3.24X, both discounted compared to their respective industry averages.
Image Source: Zacks Investment Research
Final Verdict: Hold Both HOLX and COO
Both Hologic and CooperCompanies carry a Zacks Rank #3 (Hold) a present. Hologic’s GYN Surgical business rides on International momentum, with Gynesonics expanding its capabilities. While macro pressures have impacted its outlook and stock performance, its financial strength and discounted P/S relative to the industry point may continue to attract value-focused investors.
CooperCompanies, too, faces weakness in fertility and from the broader macroeconomy. Still, the continued uptake of its GYN Surgical and contact lens offerings, combined with rising earnings estimates and an equally attractive valuation, supports the case for retaining the stock. That said, with a more favorable valuation, HOLX currently appears to be better positioned than COO.
Image: Bigstock
HOLX vs. COO: Which GYN Surgical Stock Is the Better Investment Now?
Key Takeaways
As more women seek surgical procedures for gynecological conditions, demand for specialized surgical instruments is growing, bolstering the outlook of the Gynecological Surgical Instruments (GYN Surgical) market. Investors are watching companies with strong exposure in this space, such as Hologic (HOLX - Free Report) and CooperCompanies (COO - Free Report) .
Marlborough, MA-based Hologic provides a range of minimally invasive treatment options for treating abnormal uterine bleeding and fibroids. CooperSurgical — the San Ramon, CA-based women’s healthcare arm of COO — offers fertility and gyn surgical products used in Obstetricians/Gynecologists (OB/GYN) offices, hospitals, ambulatory surgery centers and fertility clinics and also sells directly to consumers.
Both companies have diversified business models. Hologic also operates through Diagnostics, Breast Health and Skeletal Health, while COO’s CooperVision unit is a global leader in soft contact lenses. Let’s compare these two stocks to find out which one offers a more compelling investment case now.
Hologic: Key Strengths and Challenges
The company’s Surgical business is leading the overall growth, with the International business growing 16.2% in the second quarter of fiscal 2025. This was supported by ongoing market development and increased awareness for its minimally invasive GYN products, including MyoSure. The Fluent Pro system, launched in late 2024, is gaining traction from MyoSure’s improving performance and user experience. Meanwhile, the recent purchase of Gynesonics is expected to support high-single-digit growth for the Surgical unit this year.
Across segments, Hologic benefits from multiple durable growth drivers. The BV/CV/TV assay in molecular diagnostics addresses a major gap in U.S. vaginitis testing, with fewer than 40% of 20 million affected women being tested annually, mostly with older manual techniques. Biotheranostics continues to see strong adoption of the Breast Cancer Index test, which helps determine if continued endocrine therapy is necessary. Hologic’s Genius AI cytology system is seeing solid U.S. uptake.
In Breast Health, Hologic is facing a soft capital equipment market this year while gaining from steady recurring service revenues from its gantry installed base. The Endomagnetics acquisition significantly boosted its interventional breast portfolio. Meanwhile, Skeletal Health posted 22.9% growth in the second quarter due to accelerated DXA system production ramp-up.
Hologic’s strong profitability allows it to execute both tuck-in M&A and share buybacks. Still, external pressures remain. Tariffs tied to its manufacturing operations in Costa Rica and China are likely to raise inventory acquisition costs by $20-$25 million per quarter. Additionally, USAID funding cuts and China’s geopolitical landscape have weighed on its outlook.
The Case for CooperCompanies
CooperSurgical unit is gaining from strength in the surgical medical devices, labor and delivery portfolio. Paragard, its contraceptive intrauterine device, grew 18% in the second quarter of fiscal 2025, supported by the end of buy-in activity ahead of a May 1 price increase and interest in its new single-hand inserter. Management now expects a mid-teens decline in the third quarter and a flat fourth quarter, resulting in low to mid-single-digit growth for the full fiscal year.
The fertility business remains soft, particularly in Asia-Pacific, but strong underlying growth fundamentals keep the long-term prospects bullish. The office and surgical category also holds solid potential due to the demand for minimally invasive GYN surgical devices like the Ally uterine manipulator portfolio and Fetal Pillow. CooperSurgical’s recent acquisition, obp Surgical, grew 31% in the second quarter.
Within CooperVision, MiSight 1 day lens is leading the way for the myopia management portfolio, while MyDay displays momentum in torics, multifocals and Energys offerings. CooperCompanies is expanding MyDay’s availability in new markets and channels to capitalize on opportunities from greater penetration into existing accounts and with new customers. Clariti’s redesigned multifocal, mirroring MyDay design, is gaining traction for its comfort, easy handling and affordability. In frequent replacement lenses, Biofinity remains the most widely worn contact lens worldwide.
Financially, CooperCompanies remains well-positioned, with a rebound in free cash flow expected in the second half of the year. COO management plans to prioritize debt reduction with the proceeds while remaining open to opportunistic share repurchases. However, tariffs are expected to add roughly $4 million to the cost of goods this year. The impact of foreign currency may result in a 0.5% drag on revenues and 1% on earnings.
Estimate Trend for HOLX and COO
The Zacks Consensus Estimate for Hologic’s fiscal 2025 EPS implies a year-over-year improvement of 2.7%. Estimates have been trending south in the last 90 days. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Image Source: Zacks Investment Research
Analysts are turning more bullish on CooperCompanies, given the upward EPS estimate revisions in the last 90 days. The consensus mark implies 10% year-over-year growth.
Image Source: Zacks Investment Research
Price Performance & Valuation: HOLX & COO
Year to date, Hologic shares have fallen 10.5%, while CooperCompanies shares have lost 24.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Hologic is currently trading at a five-year price-to-sales (P/S) of 3.40X and CooperCompanies at 3.24X, both discounted compared to their respective industry averages.
Image Source: Zacks Investment Research
Final Verdict: Hold Both HOLX and COO
Both Hologic and CooperCompanies carry a Zacks Rank #3 (Hold) a present. Hologic’s GYN Surgical business rides on International momentum, with Gynesonics expanding its capabilities. While macro pressures have impacted its outlook and stock performance, its financial strength and discounted P/S relative to the industry point may continue to attract value-focused investors.
CooperCompanies, too, faces weakness in fertility and from the broader macroeconomy. Still, the continued uptake of its GYN Surgical and contact lens offerings, combined with rising earnings estimates and an equally attractive valuation, supports the case for retaining the stock. That said, with a more favorable valuation, HOLX currently appears to be better positioned than COO.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.