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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 $70.11, marking a -0.54% move from the previous day. This change lagged the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Heading into today, shares of the medical device maker had gained 3.36% over the past month, lagging the Medical sector's gain of 8.26% and the S&P 500's gain of 7.25% in that time.

Hologic will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2022. In that report, analysts expect Hologic to post earnings of $0.69 per share. This would mark a year-over-year decline of 48.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $896.2 million, down 23.29% from the year-ago period.

HOLX's full-year Zacks Consensus Estimates are calling for earnings of $5.54 per share and revenue of $4.67 billion. These results would represent year-over-year changes of -34.13% and -17.14%, respectively.

Investors might also notice recent changes to analyst estimates for Hologic. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 remained stagnant. Hologic is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Hologic has a Forward P/E ratio of 12.72 right now. Its industry sports an average Forward P/E of 29, so we one might conclude that Hologic is trading at a discount comparatively.

Meanwhile, HOLX's PEG ratio is currently 0.88. 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 1.85 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.

To follow HOLX in the coming trading sessions, be sure to utilize Zacks.com.


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