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Why Hologic (HOLX) Outpaced the Stock Market Today

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Hologic (HOLX - Free Report) closed at $71.19 in the latest trading session, marking a +1.17% move from the prior day. This change outpaced the S&P 500's 0.61% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.28%.

The medical device maker's stock has dropped by 3.18% in the past month, falling short of the Medical sector's gain of 1.64% and the S&P 500's gain of 2.08%.

The investment community will be paying close attention to the earnings performance of Hologic in its upcoming release. The company is slated to reveal its earnings on February 5, 2025. The company is expected to report EPS of $1.01, up 3.06% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.03 billion, showing a 1.39% escalation compared to the year-ago quarter.

HOLX's full-year Zacks Consensus Estimates are calling for earnings of $4.27 per share and revenue of $4.17 billion. These results would represent year-over-year changes of +4.66% and +3.48%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Hologic. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% lower. Hologic currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Hologic has a Forward P/E ratio of 16.47 right now. This represents a discount compared to its industry's average Forward P/E of 28.55.

It's also important to note that HOLX currently trades at a PEG ratio of 2.4. 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. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.26 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 60, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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