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Hologic (HOLX) Outpaces Stock Market Gains: What You Should Know

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Hologic (HOLX - Free Report) closed the most recent trading day at $77.22, moving +1.62% from the previous trading session. This change outpaced the S&P 500's 1.39% gain on the day. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 1.97%.

Prior to today's trading, shares of the medical device maker had gained 1.77% over the past month. This has lagged the Medical sector's gain of 2.58% and the S&P 500's gain of 2.58% in that time.

HOLX will be looking to display strength as it nears its next earnings release, which is expected to be January 27, 2021. In that report, analysts expect HOLX to post earnings of $2.14 per share. This would mark year-over-year growth of 250.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 55.65% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.17 per share and revenue of $5.22 billion. These totals would mark changes of +80.15% and +38.16%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for HOLX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.87% higher. HOLX currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that HOLX has a Forward P/E ratio of 10.62 right now. Its industry sports an average Forward P/E of 45.74, so we one might conclude that HOLX is trading at a discount comparatively.

Meanwhile, HOLX's PEG ratio is currently 0.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Instruments industry currently had an average PEG ratio of 4.06 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring 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.

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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