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Hologic (HOLX) Gains But Lags Market: What You Should Know

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Hologic (HOLX - Free Report) closed at $73.77 in the latest trading session, marking a +0.97% move from the prior day. This move lagged the S&P 500's daily gain of 1.42%. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq added 0.61%.

Heading into today, shares of the medical device maker had gained 1.04% over the past month, outpacing the Medical sector's loss of 5.99% and the S&P 500's loss of 2.09% in that time.

Hologic will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.14, down 60.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, down 32.79% from the prior-year quarter.

HOLX's full-year Zacks Consensus Estimates are calling for earnings of $3.68 per share and revenue of $3.89 billion. These results would represent year-over-year changes of -56.24% and -30.93%, respectively.

Any recent changes to analyst estimates for Hologic should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% lower. Hologic currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Hologic is holding a Forward P/E ratio of 19.85. This valuation marks a discount compared to its industry's average Forward P/E of 41.74.

Meanwhile, HOLX's PEG ratio is currently 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Instruments industry currently had an average PEG ratio of 2.94 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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