Hologic (HOLX) Gains As Market Dips: What You Should Know
In the latest trading session, Hologic (HOLX) closed at $76.67, marking a +0.99% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.34%.
Heading into today, shares of the medical device maker had gained 7.11% over the past month, outpacing the Medical sector's gain of 5.54% and the S&P 500's gain of 6.02% in that time.
Hologic will be looking to display strength as it nears its next earnings release. In that report, analysts expect Hologic to post earnings of $1.55 per share. This would mark a year-over-year decline of 40.15%. Our most recent consensus estimate is calling for quarterly revenue of $1.28 billion, down 17.07% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.10 per share and revenue of $4.39 billion, which would represent changes of -39.36% and -21.97%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Hologic. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Hologic is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Hologic's current valuation metrics, including its Forward P/E ratio of 14.9. For comparison, its industry has an average Forward P/E of 34.66, which means Hologic is trading at a discount to the group.
Meanwhile, HOLX's PEG ratio is currently 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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