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Hologic (HOLX) Advances But Underperforms Market: Key Facts

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In the latest market close, Hologic (HOLX - Free Report) reached $78.38, with a +0.35% movement compared to the previous day. This change lagged the S&P 500's 1.08% gain on the day. Meanwhile, the Dow experienced a rise of 0.32%, and the technology-dominated Nasdaq saw an increase of 1.58%.

The medical device maker's stock has climbed by 6.9% in the past month, exceeding the Medical sector's gain of 0.31% and the S&P 500's gain of 0.43%.

Market participants will be closely following the financial results of Hologic in its upcoming release. The company plans to announce its earnings on July 29, 2024. The company's upcoming EPS is projected at $1.02, signifying a 9.68% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1 billion, indicating a 1.66% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $4.08 per share and a revenue of $4.04 billion, demonstrating changes of +3.03% and +0.13%, respectively, from the preceding year.

Any recent changes to analyst estimates for Hologic should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Hologic holds a Zacks Rank of #2 (Buy).

In terms of valuation, Hologic is presently being traded at a Forward P/E ratio of 19.15. For comparison, its industry has an average Forward P/E of 24.96, which means Hologic is trading at a discount to the group.

Investors should also note that HOLX has a PEG ratio of 2.6 right now. 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. HOLX's industry had an average PEG ratio of 2.49 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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