Healthcare Stocks With Less Litigation Risk After The JandJ Talc Settlement

The Johnson & Johnson talc settlement, which could reach more than US$7b, is a reminder that legal overhangs can reshape the risk profile of even the largest healthcare stocks. With payouts pulled forward into 2027 and 2028 and future lawsuits still possible, investors are reassessing how litigation, cash flow timing, and balance sheet strength fit into a portfolio. This article looks at how that news connects to our Large Cap Healthcare Stocks screener and highlights 3 stocks that appear positively exposed to this development, helping you decide whether they might deserve a closer look or a spot on your watchlist.

Cooper Companies (COO)

Overview: Cooper Companies is a US based healthcare group that earns most of its money from contact lenses through CooperVision and also runs CooperSurgical, which sells fertility products, women’s health devices such as Paragard, and related genetic and storage services to clinics and hospitals worldwide.

Operations: Cooper Companies generates about US$2.8b in revenue from CooperVision and US$1.4b from CooperSurgical, with sales spread mainly across Europe and the United States.

Market Cap: US$13.7b

Cooper Companies could appeal if you want exposure to everyday healthcare products rather than headline grabbing drug litigation. Most revenue comes from contact lenses, where new premium products like MyDAY lines are aimed at large global markets. CooperSurgical provides a second leg in fertility and women’s health. At the same time, the stock carries real questions. Profit margins have fallen, earnings declined sharply in recent years, and the P/E sits well above peers even though revenue growth is modest. Cooper has also recorded significant litigation charges, although management says expected free cash flow through 2028 already factors these payouts in. The key question is whether the contact lens rollout and any decision on CooperSurgical can justify today’s valuation once the legal dust settles.

Cooper Companies’ rich P/E and pressured margins could be masking something investors are missing. Review the DCF valuation analysis for Cooper Companies to see how future cash flows and litigation costs might stack up.

Envista Holdings (NVST)

Overview: Envista Holdings is a US based dental equipment and supplies company that sells everything from implants and clear aligners to imaging systems and infection prevention products to dentists, clinics and hospitals worldwide.

Operations: Envista generates about US$1.8b in revenue from its Specialty Products & Technologies segment and roughly US$1.0b from Equipment & Consumables.

Market Cap: US$4.3b

Envista Holdings may appeal to investors who want exposure to recurring dental demand rather than large headline litigation risk. Its mix of implants, clear aligners and consumables ties revenue to ongoing patient volumes, while digital tools like DTX Studio Clinic and Spark aligners position the business in the higher margin end of dental care. At the same time, the stock carries execution risk, including pressure from China’s procurement reforms, trade tariffs and a P/E that leaves limited room for earnings disappointment. Management points to growing buybacks and guidance indicating steady revenue and EBITDA in 2026 as signs of confidence. The key question for investors is how securely future cash flows support today’s valuation in a market that has recently been reminded how costly legal overhangs can be.

Envista Holdings sits at the crossroads of recurring dental demand and higher margin digital tools, yet the market debate on its P/E suggests something important is still missing. See how future cash flows, buybacks and litigation risk are weighed in the analysis report for Envista Holdings

Centene (CNC)

Overview: Centene is a US managed care company that arranges healthcare coverage for under-insured families, government programs and employer groups, mainly through Medicaid, Medicare and Affordable Care Act marketplace plans, using networks of primary care doctors, specialists and hospitals.

Operations: Centene generates about US$91.5b in revenue from Medicaid, US$38.8b from Medicare, US$41.4b from Commercial plans and US$5.0b from Other and eliminations, almost all from the United States.

Market Cap: US$31.3b

Centene gives you exposure to large, long-term government backed healthcare programs at a time when investors are rethinking legal and funding risks after the Johnson & Johnson talc settlement. The company is currently unprofitable and carries high external borrowing, yet the stock trades at a deep discount to estimated fair value with a very low P/S multiple and forecasts that point to a sharp earnings recovery over the next few years. Margin repair in Medicaid, contract wins such as the renewed Illinois deal and management’s cost cutting efforts create real optionality. The flip side is policy reform, volatile medical costs and high specialty drug spending, which means the upside story is there for investors who are comfortable with the execution and regulatory risk that comes with it.

Centene’s earnings recovery story and low P/S multiple suggest the market may be missing something in this Medicaid and Medicare turnaround. Get the full picture in the analyst forecasts for Centene

The three stocks in this article are only a starting point. The full Large Cap Healthcare Stocks screener flags 98 more large cap healthcare companies with equally compelling stories taking shape behind the headlines. Use Simply Wall St to identify and analyze the specific catalysts, balance sheet strength and risk profiles that match your own thesis so you can narrow in on the highest conviction ideas in this space.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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