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Hologic (HOLX) Gains But Lags Market: What You Should Know

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In the latest trading session, Hologic (HOLX) closed at $75.99, marking a +1.8% move from the previous day. The stock lagged the S&P 500's daily gain of 1.84%. Elsewhere, the Dow gained 1.33%, while the tech-heavy Nasdaq added 0.53%.

Prior to today's trading, shares of the medical device maker had lost 1.39% over the past month. This has lagged the Medical sector's loss of 1.18% and the S&P 500's loss of 0.5% 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.54 per share and revenue of $4.67 billion, which would represent changes of -34.13% and -17.14%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Hologic. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% lower. Hologic currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Hologic is holding a Forward P/E ratio of 13.47. For comparison, its industry has an average Forward P/E of 29.67, which means Hologic is trading at a discount to the group.

Meanwhile, HOLX's PEG ratio is currently 0.93. 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 was holding an average PEG ratio of 2.03 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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