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Hologic (HOLX) Dips More Than Broader Markets: What You Should Know

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Hologic (HOLX) closed at $75.65 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's 1.08% loss on the day. Meanwhile, the Dow lost 0.81%, and the Nasdaq, a tech-heavy index, added 0.22%.

Heading into today, shares of the medical device maker had gained 4.5% over the past month, outpacing the Medical sector's gain of 1.97% and the S&P 500's gain of 1.03% in that time.

Wall Street will be looking for positivity from Hologic as it approaches its next earnings report date. On that day, Hologic is projected to report earnings of $0.69 per share, which would represent a year-over-year decline of 48.12%. Meanwhile, our latest consensus estimate is calling for revenue of $896.2 million, down 23.29% from the prior-year quarter.

HOLX's full-year Zacks Consensus Estimates are calling for earnings of $5.54 per share and revenue of $4.67 billion. These results would represent year-over-year changes of -34.13% and -17.14%, respectively.

It is also important to note the recent changes to analyst estimates for Hologic. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% lower. Hologic is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Hologic is holding a Forward P/E ratio of 13.82. Its industry sports an average Forward P/E of 28.89, so we one might conclude that Hologic is trading at a discount comparatively.

Also, we should mention that HOLX has a PEG ratio of 0.96. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Instruments industry currently had an average PEG ratio of 2.07 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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