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Hologic (HOLX) Gains As Market Dips: What You Should Know

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In the latest trading session, Hologic (HOLX - Free Report) closed at $74.38, marking a +1.02% move from the previous day. This move outpaced the S&P 500's daily loss of 0.02%.

Heading into today, shares of the medical device maker had gained 3.66% over the past month, outpacing the Medical sector's loss of 1.93% and lagging the S&P 500's gain of 6.61% in that time.

HOLX will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2021. On that day, HOLX is projected to report earnings of $2.61 per share, which would represent year-over-year growth of 357.89%. Meanwhile, our latest consensus estimate is calling for revenue of $1.54 billion, up 103.53% from the prior-year quarter.

HOLX's full-year Zacks Consensus Estimates are calling for earnings of $8.90 per share and revenue of $5.74 billion. These results would represent year-over-year changes of +123.62% and +52.01%, respectively.

Investors might also notice recent changes to analyst estimates for HOLX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.95% higher. HOLX is currently a Zacks Rank #2 (Buy).

In terms of valuation, HOLX is currently trading at a Forward P/E ratio of 8.28. Its industry sports an average Forward P/E of 41.82, so we one might conclude that HOLX is trading at a discount comparatively.

Also, we should mention that HOLX has a PEG ratio of 0.54. 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. Medical - Instruments stocks are, on average, holding a PEG ratio of 3.11 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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