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Hologic Hits 52-Week High on Q4 Earnings & Solid Prospects
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Share price of Bedford, MA-based Hologic Inc. (HOLX - Free Report) reached a new 52-week high of $41.01 on Dec 14, finally closing a tad lower at $40.79. The stock rallied 5.4% year to date and added roughly 4.6% over the past one year. The stock has a market cap of $11.4 billion.
Over the last six months, Hologic has consistently outperformed the Zacks Categorized Medical Products industry. The company has exited fiscal 2016 on a solid note with both its top and bottom line comfortably beating the Zacks Consensus Estimate. The company’s promising guidance for 2017 also raises confidence. In the last six months the stock rallied 9.3%, compared to 5.6% loss of the Zacks Categorized Medical Products Industry.
Hologic recently reported an impressive quarterly performance and issued a promising outlook. Revenues improved 3.4% year over year, while earnings grew 20.9% year over year.
Additionally, Hologic’s long-term growth fundamentals are compelling. The Zacks Rank #3 (Hold) company recorded a five-year CAGR of 9.5% for revenues and of 9% for earnings per share BNRI. Hologic has particularly seen an improvement in earnings over the last three years.
The company has an impressive Growth Style Score of ‘A’. Our Growth Style Score highlights all the vital metrics of the company’s financials to obtain a clearer picture of the quality and sustainability of growth. Our research shows that stocks with Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1, 2 or 3 offer the best investment opportunities.
Further, the estimate revision trend for Hologic is favorable. In the past 60 days, five estimates have gone up with no downward revision for fiscal 2017. The magnitude of estimate revision has also been encouraging over the same time period, increasing from $2.13 per share to $2.14 in the past 60 days. Hologic also has a trailing four-quarter average positive earnings surprise of 6.1%.
Growth Factors
On Dec 14, Hologic’s shares rallied on the announcement of the company’s agreement to sell a stake in its loss-making blood screening business to its commercial partner, Grifols. The rationale behind the divestment is to build a sustainable growth company by accelerating top as well as bottom-line growth and enhancing financial flexibility. This may further boost investor confidence in the stock.
Coming to the fourth-quarter details, management was particularly upbeat about the strong performance in the U.S. Hologic also witnessed growth across all of its business segments.
Hologic’s Surgical division was the main growth driver, up 17.6%. Investors are optimistic about the consistent growth at this division which was in turn driven by MyoSure market expansion efforts, NovaSure share gains as well as international sales. Geographically, management expects its international business to begin contributing to growth in fiscal 2017, in line with the company's overall growth rate.
Management also observed robust performance in its Diagnostics segment for the past one year, mainly driven by global molecular diagnostics and cytology and perinatal revenues.
Within the molecular diagnostics franchise, Hologic’s Genius 3D mammography systems and the Panther platform performed well in 2016. Management currently expects Hologic’s international molecular diagnostics to emerge as a new growth driver.
On the other hand, the domestic molecular diagnostics business delivered strong results. Particularly, Hologic noticed strong placements of its fully automated Panther system and competitive wins with increased utilization of assays for trichomonas, HPV and chlamydia/gonorrhea.
Further, the company announced FDA’s emergency use authorization (EUA) for the company's Aptima Zika virus diagnostic assay to be used with urine samples. Moreover, blood banks began testing donated blood for Zika with Hologic’s Procleix assay under an Investigational New Drug protocol. In the event of Zika virus spreading in the U.S., Hologic is well poised to benefit from the situation and boost its molecular diagnostic business in the days ahead.
Key Picks
Better-ranked medical stocks are NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical surged 28.7% over the last one year compared with the S&P 500’s 8.6% over the same period. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 19.1% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 113.2% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
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Hologic Hits 52-Week High on Q4 Earnings & Solid Prospects
Share price of Bedford, MA-based Hologic Inc. (HOLX - Free Report) reached a new 52-week high of $41.01 on Dec 14, finally closing a tad lower at $40.79. The stock rallied 5.4% year to date and added roughly 4.6% over the past one year. The stock has a market cap of $11.4 billion.
Over the last six months, Hologic has consistently outperformed the Zacks Categorized Medical Products industry. The company has exited fiscal 2016 on a solid note with both its top and bottom line comfortably beating the Zacks Consensus Estimate. The company’s promising guidance for 2017 also raises confidence. In the last six months the stock rallied 9.3%, compared to 5.6% loss of the Zacks Categorized Medical Products Industry.
Hologic recently reported an impressive quarterly performance and issued a promising outlook. Revenues improved 3.4% year over year, while earnings grew 20.9% year over year.
Additionally, Hologic’s long-term growth fundamentals are compelling. The Zacks Rank #3 (Hold) company recorded a five-year CAGR of 9.5% for revenues and of 9% for earnings per share BNRI. Hologic has particularly seen an improvement in earnings over the last three years.
The company has an impressive Growth Style Score of ‘A’. Our Growth Style Score highlights all the vital metrics of the company’s financials to obtain a clearer picture of the quality and sustainability of growth. Our research shows that stocks with Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1, 2 or 3 offer the best investment opportunities.
HOLOGIC INC Price and Consensus
HOLOGIC INC Price and Consensus | HOLOGIC INC Quote
Further, the estimate revision trend for Hologic is favorable. In the past 60 days, five estimates have gone up with no downward revision for fiscal 2017. The magnitude of estimate revision has also been encouraging over the same time period, increasing from $2.13 per share to $2.14 in the past 60 days. Hologic also has a trailing four-quarter average positive earnings surprise of 6.1%.
Growth Factors
On Dec 14, Hologic’s shares rallied on the announcement of the company’s agreement to sell a stake in its loss-making blood screening business to its commercial partner, Grifols. The rationale behind the divestment is to build a sustainable growth company by accelerating top as well as bottom-line growth and enhancing financial flexibility. This may further boost investor confidence in the stock.
Coming to the fourth-quarter details, management was particularly upbeat about the strong performance in the U.S. Hologic also witnessed growth across all of its business segments.
Hologic’s Surgical division was the main growth driver, up 17.6%. Investors are optimistic about the consistent growth at this division which was in turn driven by MyoSure market expansion efforts, NovaSure share gains as well as international sales. Geographically, management expects its international business to begin contributing to growth in fiscal 2017, in line with the company's overall growth rate.
Management also observed robust performance in its Diagnostics segment for the past one year, mainly driven by global molecular diagnostics and cytology and perinatal revenues.
Within the molecular diagnostics franchise, Hologic’s Genius 3D mammography systems and the Panther platform performed well in 2016. Management currently expects Hologic’s international molecular diagnostics to emerge as a new growth driver.
On the other hand, the domestic molecular diagnostics business delivered strong results. Particularly, Hologic noticed strong placements of its fully automated Panther system and competitive wins with increased utilization of assays for trichomonas, HPV and chlamydia/gonorrhea.
Further, the company announced FDA’s emergency use authorization (EUA) for the company's Aptima Zika virus diagnostic assay to be used with urine samples. Moreover, blood banks began testing donated blood for Zika with Hologic’s Procleix assay under an Investigational New Drug protocol. In the event of Zika virus spreading in the U.S., Hologic is well poised to benefit from the situation and boost its molecular diagnostic business in the days ahead.
Key Picks
Better-ranked medical stocks are NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical surged 28.7% over the last one year compared with the S&P 500’s 8.6% over the same period. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 19.1% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 113.2% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>