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Here's How Much You'd Have If You Invested $1000 in Hologic a Decade Ago

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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Hologic (HOLX - Free Report) ten years ago? It may not have been easy to hold on to HOLX for all that time, but if you did, how much would your investment be worth today?

Hologic's Business In-Depth

With that in mind, let's take a look at Hologic's main business drivers.

Headquartered in Bedford, MA, Hologic Inc. develops, manufactures, and supplies diagnostics, medical imaging systems and surgical products which cater to the healthcare needs of women.

Hologic operates through the following four segments:

Diagnostics (55% of total revenues in FY22): With the Gen-Probe acquisition, Hologic currently offers APTIMA family of assays that includes the APTIMA Combo 2 assay, which feature the APTIMA CT and APTIMA GC assays, the APTIMA HPV assay and the APTIMA Trichomonas assay. Other products include the ThinPrep system, primarily used in cytology applications.

Breast Health (29% of total revenues in FY22): Products include a broad portfolio of breast imaging and related products and accessories, including digital and film-based mammography systems, computer-aided detection (CAD), breast biopsy guidance systems, minimally invasive breast biopsy and tissue extraction devices and breast brachytherapy products.

GYN Surgical (14% of total revenues in FY22): Products include the NovaSure endometrial ablation system – used in the treatment of heavy menstrual bleeding and the MyoSure hysteroscopic tissue removal system – which allows incision less removal of fibroids and polyps within the uterus.

Skeletal Health (2% of total revenues in FY22): This segment includes dual-energy X-ray bone densitometry systems, an ultrasound-based osteoporosis assessment product, and Fluoroscan mini-C arm imaging products.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Hologic ten years ago, you're likely feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in April 2013 would be worth $3,827.25, or a 282.73% gain, as of April 7, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 164.28% and gold's return of 22.04% over the same time frame.

Analysts are forecasting more upside for HOLX too.

Hologic delivered better-than-expected revenues and earnings for the fourth quarter of fiscal 2022. Both molecular diagnostics and surgical businesses grew strong. Excluding COVID impact, molecular diagnostics business grew primarily on more assays being run through the company’s expanded Panther installed base. GYN Surgical business grew nearly 9% organically as the company registered procedural volumes return as well as acceleration from the new business lines. In the past year, Hologic has outperformed its industry. However, on a year-over-year basis, earnings and revenues were significantly down. The significant decline in COVID-19 assay revenues, along with supply chain challenges related to semiconductor chips in the Breast Health business, dragged total revenues down. The company also reported a contraction in both margins.

Over the past four weeks, shares have rallied 5.57%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

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