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Hologic (HOLX) Outpaces Stock Market Gains: What You Should Know

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Hologic (HOLX) closed the most recent trading day at $70.02, moving +0.5% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.34%.

Prior to today's trading, shares of the medical device maker had lost 10.25% over the past month. This has lagged the Medical sector's loss of 4.68% and the S&P 500's loss of 0.12% in that time.

HOLX will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2021. The company is expected to report EPS of $0.97, down 53.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.02 billion, down 24.31% from the year-ago period.

Investors should also note any recent changes to analyst estimates for HOLX. 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. 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 remained stagnant. HOLX is currently a Zacks Rank #4 (Sell).

Digging into valuation, HOLX currently has a Forward P/E ratio of 18.85. For comparison, its industry has an average Forward P/E of 49.55, which means HOLX is trading at a discount to the group.

We can also see that HOLX currently has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Instruments was holding an average PEG ratio of 3.15 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 39% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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