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Hologic (HOLX) Stock Sinks As Market Gains: Here's Why

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Hologic (HOLX - Free Report) closed at $79.77 in the latest trading session, marking a -0.98% move from the prior day. This move lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.08%.

Prior to today's trading, shares of the medical device maker had lost 1.95% over the past month. This has was narrower than the Medical sector's loss of 3.6% and lagged the S&P 500's gain of 1.21% in that time.

The investment community will be paying close attention to the earnings performance of Hologic in its upcoming release. In that report, analysts expect Hologic to post earnings of $1.02 per share. This would mark year-over-year growth of 14.61%. Our most recent consensus estimate is calling for quarterly revenue of $978.92 million, up 3.56% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Hologic. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.45% lower. Right now, Hologic possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Hologic is presently trading at a Forward P/E ratio of 18.15. This represents a discount compared to its industry's average Forward P/E of 27.12.

Investors should also note that HOLX has a PEG ratio of 2.35 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Instruments industry had an average PEG ratio of 2.24 as trading concluded yesterday.

The Medical - Instruments industry is part of the Medical sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.

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.

To follow HOLX in the coming trading sessions, be sure to utilize Zacks.com.


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