Hologic (HOLX) Beats Market Returns: Some Facts to Consider

Hologic (HOLX) closed the last trading session at $78.46, indicating a change of +1.45% from the previous session’s close. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. On the other hand, the Dow Jones registered a gain of 1.85% and the tech-focused Nasdaq rose 0.2%.

Shares of the medical device maker have gained 8.27% over the past month. Meanwhile, the Medical sector has gained 0.71%, while the S&P 500 has gained 3.82%.

Investors will be keenly watching Hologic’s performance when it releases its next earnings report. The company’s earnings report is expected to be released on July 29, 2024. In that report, analysts expect Hologic to post earnings of $1.02 per share. This would mark year-over-year growth of 9.68%. At the same time, our most recent consensus estimate is calling for revenue of $1 billion, which would reflect a 1.66% increase from the same quarter last year.

For the full year, the Zacks Consensus Analyst Estimates are for earnings of $4.08 per share and revenue of $4.04 billion, representing changes of +3.03% and +0.13%, respectively, from last year.

Additionally, investors should keep an eye on recent analyst forecast revisions for Hologic. These recent adjustments often reflect changing dynamics in near-term business models. As a result, optimistic estimate changes indicate that analysts have a favorable view of the company’s business health and profitability.

Our research suggests that these estimate changes are directly correlated with future stock price movements. To take advantage of this, we have developed the Zacks Rank, a proprietary model that takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It enjoys a remarkable, outside-audited track record of success, with #1 stocks generating an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Hologic carries a Zacks Rank of #2 (Buy).

In terms of valuation, Hologic has a forward price-to-earnings ratio of 18.96. This valuation represents a discount to the industry average forward price-to-earnings ratio of 25.55.

It’s also important to note that HOLX is currently trading at a PEG ratio of 2.58. This metric is used in a similar way to the popular price-to-earnings ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As of yesterday’s close of trading, the Medical Instruments industry had an average PEG ratio of 2.54.

The Medical Devices industry is part of the Medical sector. Currently, this industry holds a Zacks Rank of 155, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our specific industry groups by calculating 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.

Be sure to use Zacks.com to stay informed of all these stock metrics and more in the coming trading sessions.

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