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Hologic, Inc. (HOLX)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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73.38-0.39 (-0.54%)
As of 11:58AM EST. Market open.
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  • T
    Tom
    GE Healthcare acquisition of HOLX after the split from GE parent?

    GE H/C just might want or need to bulk up to better compete with Siemens. Just a thought.

    Any comments?
    Bullish
  • r
    robert
    Hi everyone , if you are an investor or are intrigued with holx and what they do for women’s health please take some time and enjoy learning what izotropic corporation is building . Izozf. Sounds like there ahead of schedule with the upcoming clinical partner announcement . John mcgraw is the lottery ticket with this company.
  • T
    Tom
    @Adrian,

    Pfizer this morning announced an antiviral pill that's 89% effective at preventing serious outcomes from coronavirus infections, including hosptitalization and death.

    All vaccine manufacturers (except PFE) and C-19 test manufacturers have taken hits.

    HOLX sell-off is way over done because pandemic and C-19 testing decline had already been priced in.
    Bullish
  • O
    Outperform
    Revenue Beat, Earnings Beat, Guidance increased. Nice quarter.
  • T
    Tom
    On page B1 of today's (11/17/2021) Wall Street Journal print edition:

    GE Jumps on Surging Healthcare Demand With Spinoff

    In spinning off its healthcare business, General Electric Co. is betting on the fast-growing diagnostic-imaging-equipment market, a sector facing disruption from artificial intelligence and growing competition from startups as well as established players.

    GE Healthcare—which makes MRI, ultrasound and other healthcare equipment—will be spun off in early 2023, with GE planning to retain a 19.9% stake in the new firm. Already dominant in the sector, as a stand-alone it would be able to move faster and have more capital to scoop up companies and technologies, analysts said.

    The changes boosting demand in the industry—aging populations in the West, growing access to healthcare in emerging economies, new technologies and the Covid-19 pandemic—present both an opportunity and a challenge for GE Healthcare, analysts said.

    The company faces tough competition from established players such as Siemens Healthineers AG and Koninklijke Philips NV, as well as startups focused on AI and fast-growing players in China.
    ---------------------------------------
    All reasons why GE Healthcare will want to consider acquiring Hologic's AI/ML diagnostic technology (Genius 3D Mammography, Genius Pap Image Processor, Panther and other AI/ML Diagnostic Systems). Doing so would dramatically enhance GE H/C's competitive advantages vs Siemens et al.
    Bullish
  • T
    Tom
    @Joe, I suspect one or more fund managers took a substantial position in HOLX before the earnings announcement and MacMillan and team disappointed with their conservative forward guidance.

    Nevertheless, HOLX's multiplexed Panther assay capable of testing for Influenza Type A, Influenza Type B and the Coronavirus from a single sample should be a hit with physicians this winter since all three infections present similar, overlapping symptoms.
    Bullish
  • T
    Tom
    Hologic's Multiplex COVID-19/Flu-A/Flu-B test run on its Panther System (1,000 tests processed per day) should give physicians an easy way to diagnose these illnesses which present overlapping symptoms.

    Bottom line: A clear sales growth driver!
    Bullish
  • z
    zack
    Doubt there's a Xmas rally with interest rate going up !!!
  • z
    zack
    It's reporting earning on Monday and should pop it over $80 if it beats by a whopping 20% plus beating the streets' expectation. Hope it does.
    Bullish
  • s
    stocktargetadvisor
    $HOLX
    Maintains Morgan Stanley Equal-Weight USD 75 » USD 76
    Reiterated by William Blair Outperform
    Initiated by Redburn Partners Neutral
  • z
    zack
    New 52 weeks low in the making
    Bearish
  • z
    zack
    Have to wait for results next year. This end of the year is all tax selling. No Xmas rally here!!
  • z
    zack
    Looks like the street don’t see it as beat!! It compares last year not last quarter!!! Down to $60 the way it is reacting!!
  • T
    Tom
    Simply Wall Street's conservative Discounted Cash Flow (DCF) analysis indicates Hologic's intrinsic value is $106.04/share. See today's news links.

    A couple more excellent quarterly reports will likely see analysts' 52 week price targets revised upward to above $90/share.
    Bullish
  • T
    Thomas
    Started position at 71.14....gla
  • T
    Tom
    From Barron’s 2/12/2021 via AP
    Shares of the Covid-test company Hologic (HOLX) are cheap, and the business is growing. Some analysts see about 25% upside for the shares.
    By Evie Liu
    Sometimes, you really can have it both ways. Consider medical-diagnostic company Hologic Covid-19-beneficiary but also a business that will benefit as life returns to normal.
    To say that Covid-19 has been good for Hologic’s business is an understatement. The company, which provides molecular diagnostic equipment for Covid-19 PCR tests, saw sales in its diagnostics division grow to $1.1 billion during the fiscal first quarter that ended in December 2020, up from $312 million in the same quarter of 2019, while earnings quadrupled.
    The market seems reluctant to give Marlborough, Mass.--based Hologic credit for that growth. While its stock has gained 52%, to $80.02, in the past 12 months, three times the S&P 500 index's 17% rise during the same period, its price/earnings ratio has fallen. That's a sign that investors expect the boost from Covid-19 testing to fade as the disease ebbs. Yet, the contraction in valuation overlooks the likelihood that testing will continue, while Hologic’s success with the coronavirus could lead to growth in its other businesses. For investors, Hologic looks like a bargain waiting to be snapped up.
    Hologic was a much different company before the coronavirus arrived. Breast Health, which provides everything from screening to treatment, accounted for 39% of sales at the end of fiscal 2019, with diagnostics second, at 36%. Now, diagnostics has grown to 56% of revenue, while Breast Health has slipped to second, at 30%. GYN Surgical, the third-largest segment, is 10%, down from 13% in fiscal 2019.
    Hologic is expected to post total sales of $5.8 billion in fiscal 2021, up 53% year over year.
    Hologic currently trades for just under nine times fiscal-2021 estimated earnings of $8.95 a share, compared with its five-year average of nearly 19 times earnings. Larger Covid-19-test providers, such as Thermo Fisher Scientific (TMO) and Abbott Laboratories (ABT), fetch 23 and 25 times earnings, respectively, although Covid-19-test supplies are a much smaller part of their business.
    By some estimates, the Covid-19 diagnostics business could fall by 35% in the next year, which helps explain Hologic’s steep discount. But Jefferies analyst Raj Denhoy thinks those concerns are overblown. Even with the vaccine rollouts, extensive testing may still be needed before surgery and travel, for instance, and around adoption of the vaccine itself. "The downward trajectory next year isn't going to be as bad as people feared," he says. "Covid testing probably will continue for quite some time."
    Besides, Hologic is more than just a bet on Covid-19 testing. Its growing diagnostic business has allowed it to place more of its devices in labs and hospitals around the country, and they are likely to stay there, especially because its automated testing is simpler than mixing and matching products from different companies. As a result, Hologic is well positioned to emerge in the postpandemic world with a larger market share in the broader molecular-diagnosis industry. That should help to offset any falloff in Covid-19-related revenue in years to come, says Wells Fargo analyst Dan Leonard.
    Hologic is known as one of the largest players in breast-imaging technologies such as mammography. It also sells other medical devices used in gynecologic surgeries, biopsies, and other procedures. Those businesses were hurt last year, as fewer people had regular checkups or nonurgent procedures. But they recovered to pre-pandemic levels in the December quarter, bringing in total revenue of $482 million.
    Things may only get better. "We expect to have a very good year in 2021 based on our contributions to Covid testing, as well as the continued recovery of our breast health, surgical, and broader diagnostics franchises that benefit women's health," says Steve MacMillan, Hologic’s chairman, president, and CEO.
    With the tailwind of Covid-19 testing and a recovery in other business segments, Wall Street expects 's Hologic’s earnings to grow by 125% in fiscal 2021 -- and that's atop a 64% gain, to $3.98 per share, in fiscal 2020. "They are going to be a strong beneficiary of the Covid-19 situation as well as the post-Covid environment," says Ken Laudan, co-manager of the $1.9 billion Buffalo Discovery fund (BUFTX), which counts Hologic among its top holdings. "You have a business that would be hitting on all cylinders."
    Covid-19 has done wonders for Hologic’s cash flow. Laudan estimates that the company probably will generate $1.5 billion to $1.8 billion of free cash flow due to the Covid-19 opportunity. Denhoy is even more optimistic, predicting $2.5 billion to $3 billion in free cash from "insatiable Covid demand" over the next two years. That's money that can be put to use for reinvestment, mergers and acquisitions, and stock buybacks.
    Bullish
  • M
    Mark
    will this company get a chunk of all the money being spent on covid testing?
  • T
    Tom
    @Brent

    (1) HOLX trades with a P/E of about 14 while the avg. P/E of all S&P stocks is 22+

    (2) A stock with a PEG (P/E divided by the company's 5 year avg. growth rate) of between 1.0 and 2.0 is said to offer GARP: "Growth at a reasonable price." A stock with a PEG less than one is thought to be a value-growth stock. HOLX trades with a PEG of 0.77 (see Analysis-Details under Yahoo Finance)

    (3) HOLX trades with a P/E and PEG significantly below those of other companies in its industry. Given that HOLX management has performed better than managers of its peers, this again suggests HOLX is a good value play.

    (4) Other value metrics (e.g., P/S, P/B, Net Present Value) all also indicate HOLX is a good value.

    And, finally,

    (5) You should exercise caution when taking investment advice from unknown, anonymous individuals on public message boards.

    With that having been said, in the interest of full disclosure, I am very, very long HOLX.

    GLTA
  • J
    John1
    HOLX is doing really well so far this Earnings Day market as compared to most other securities that are reporting. I feel we're in for a nice surprise and an excellent opening tomorrow morning. Opinions as we wait for 1:30 pm PST?
  • J
    John
    I don't think the prospect of an effective vaccine makes the testing business disappear overnight. Also, any decline in that portion of their business will be offset by the recovery in the other portions of their business (elective surgeries, breast cancer diagnosis, etc.)
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