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

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In the latest trading session, Hologic (HOLX - Free Report) closed at $69.59, marking a -0.53% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.

Prior to today's trading, shares of the medical device maker had lost 10.45% over the past month. This has lagged the Medical sector's loss of 3.56% and the S&P 500's gain of 0.64% in that time.

Hologic will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2022. The company is expected to report EPS of $1.17, down 59.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.12 billion, down 30.47% from the prior-year quarter.

HOLX's full-year Zacks Consensus Estimates are calling for earnings of $3.76 per share and revenue of $3.91 billion. These results would represent year-over-year changes of -55.29% and -30.6%, respectively.

Investors might also notice 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.

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. Within the past 30 days, our consensus EPS projection has moved 1.54% higher. Hologic is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Hologic is holding a Forward P/E ratio of 18.51. For comparison, its industry has an average Forward P/E of 42.27, which means Hologic is trading at a discount to the group.

It is also worth noting that HOLX currently has a PEG ratio of 2.51. 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. HOLX's industry had an average PEG ratio of 2.51 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% 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.

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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