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

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Hologic (HOLX - Free Report) closed the most recent trading day at $75.09, moving -0.16% from the previous trading session. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.33%.

Heading into today, shares of the medical device maker had gained 0.64% over the past month, lagging the Medical sector's gain of 3.52% and the S&P 500's gain of 4.32% in that time.

Investors will be hoping for strength from Hologic as it approaches its next earnings release. In that report, analysts expect Hologic to post earnings of $1.17 per share. This would mark a year-over-year decline of 59.09%. Our most recent consensus estimate is calling for quarterly revenue of $1.07 billion, down 33.69% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.70 per share and revenue of $3.9 billion, which would represent changes of -56% and -30.69%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Hologic. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.01% higher. Hologic is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Hologic has a Forward P/E ratio of 20.32 right now. For comparison, its industry has an average Forward P/E of 42.6, which means Hologic is trading at a discount to the group.

It is also worth noting that HOLX currently has a PEG ratio of 1.56. 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. HOLX's industry had an average PEG ratio of 2.59 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 30% 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.

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