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HOLX vs. DGX: Which Women's Health-Focused Stock Is the Better Pick?
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With women’s health increasingly becoming a global priority, investors are actively targeting companies operating in this space to boost their portfolios. Research and Markets projects the women’s health diagnostics market to expand at a compound annual rate of 9.25% through 2030, driven by technological advancements, increasing healthcare expenditures, and initiatives for early detection of women-specific conditions like reproductive health issues, breast cancer, osteoporosis and more. Two U.S. healthcare innovators, Hologic (HOLX - Free Report) and Quest Diagnostics (DGX - Free Report) , have established a strong foothold in this space, each with its own areas of specialization.
Hologic, with a market cap of $12.10 billion, develops products and services across the women’s healthcare continuum, such as advanced diagnostics products, medical imaging systems and surgical products. In comparison, Quest Diagnostics, with a market cap of $19.12 billion, provides a comprehensive portfolio of diagnostic tests for all stages of a woman’s life — from routine screenings like cervical cancer and sexually transmitted infections (STIs) to pregnancy and fertility testing.
Between these two, which one stands out as the smarter pick now? Let’s dive deep into their fundamentals, growth drivers and challenges to find out.
The Case for Hologic
The Marlborough, MA-based company benefits from its strategy of building multiple durable growth drivers across all its global franchises. Key offerings include Aptima and Panther Fusion assays for sexually transmitted diseases (STDs), vaginitis and respiratory infections. The BV/CV/TV assay shows strong double-digit growth, supported by rising awareness and reimbursement in the U.S. vaginitis market. Molecular growth is further backed by the Biotheranostics business, driven by the rising adoption of the Breast Cancer Index test. However, weaker HIV testing in Africa due to federal funding cuts affected the fiscal 2025 second-quarter performance and is likely to persist.
Hologic is seeing strong adoption of the Genius Digital Diagnostics System — the first FDA-cleared digital cytology system for cervical cancer screening, combining novel artificial intelligence (AI) with advanced imaging. However, Q2 International cytology and perinatal sales were impacted by South Korea’s physician strike and reduced hospital spending in China.
On the MedTech side, the company’s mammography products continue to command leading market shares. In the second quarter, recurring service revenues (more than 45% of total Breast Health revenues) rose 12% year over year. The addition of Endomagnetics enhanced its Interventional Breast portfolio, with Hologic now selling its products directly through its U.S. salesforce to tap into wireless localization market opportunities. However, as anticipated, softer capital equipment sales caused the segment’s revenues to decline 7.4%.
Internationally, the Surgical business continues to be a standout. The company demonstrates sound financial health, with the flexibility to execute both tuck-in M&A and share repurchases. Still, macroeconomic challenges, including the ongoing trade war in China, have affected its 2025 outlook. Tariffs are expected to impact manufacturing costs by $20 million to $25 million per quarter, with two-thirds of it tied to imports from Costa Rica.
The Case for Quest Diagnostics
Based in Secaucus, NJ, Quest Diagnostics is experiencing strong growth in Women's and Reproductive Health, one of its five key clinical areas where it offers Advanced Diagnostics. The growth is largely driven by prenatal and hereditary genetic testing over the past several quarters. In March 2025, the company launched a new solution that allows patients to self-collect a specimen for human papillomavirus (HPV) cervical cancer screening in a physician's office or other healthcare setting. The test uses Roche’s (RHHBY - Free Report) HPV self-collection solution and builds on Quest Diagnostics’ STI-related self-collection option, introduced in October last year.
Other clinical areas — advanced cardiometabolic, autoimmune, brain health and oncology — also posted double-digit growth in the first quarter of 2025, contributing to the 12% year-over-year revenue increase. Recent introductions include a laboratory-developed test to confirm Alzheimer's disease (AD) pathology in symptomatic patients and the Haystack MRD — its first circulating tumor DNA (ctDNA) minimal residual disease (MRD) test for assessing early risk of cancer recurrence. The company continues expanding the Advanced Diagnostics portfolio to enable growth across its core channels: Physicians, Hospitals and Consumers.
In 2024, Quest Diagnostics completed eight acquisitions, including LifeLabs in Canada, and formed new health plan relationships. These favorably impacted both Q1 Diagnostic Information Services sales and adjusted operating income, translating to 8.3% growth in adjusted earnings per share (EPS). The company also became the first independent lab in the Optum Health preferred network. In February, Quest Diagnostics extended its chronic kidney disease test portfolio to include dialysis-related laboratory and water testing capabilities via a new agreement with Fresenius Medical Care (FMS - Free Report) .
Operationally, Quest Diagnostics is increasing the use of automation, robotics and AI across the business to drive productivity gains and improve user experience. The company teamed up with Google Cloud to streamline data management using generative AI. Despite broader economic pressures, Quest Diagnostics reaffirmed its 2025 revenue and adjusted EPS guidance. Yet, its escalating debt levels are a concern, ending the first quarter with $5.86 billion in long-term debt and just $188 million in cash and cash equivalents.
Estimate Movement for HOLX and DGX
The Zacks Consensus Estimate for Hologic’s fiscal 2025 sales and EPS implies a year-over-year improvement of 1.2% and 3.2%, respectively. The bottom-line estimates have shown mixed movements in the last 30 days. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DGX’s 2025 sales and EPS suggests a year-over-year improvement of 9.2% and 8.6%, respectively. Analysts seem more bullish on Quest Diagnostics, given the upward EPS estimate revisions in the last 30 days.
Image Source: Zacks Investment Research
Price Performance of HOLX & DGX
In the past six months, Hologic’s shares have plunged significantly, down 31.6%, while the benchmark S&P 500 slipped just 3.2%. In contrast, Quest Diagnostics held its ground with a 4.9% gain.
Image Source: Zacks Investment Research
Assessing HOLX & DGX Valuation
Hologic is trading at a forward price-to-sales (P/S) multiple of 2.87X, higher than Quest Diagnostics’ 1.75X P/S over the last five years. However, both HOLX and DGX appear discounted when compared to their respective industry averages of 4.04X and 2.71X. Each of them has a Value score of B.
Image Source: Zacks Investment Research
HOLX or DGX: Which Stock to Pick?
As a pure-play in women’s health, Hologic continues to benefit from its diversified revenue model and growth drivers. International prospects are encouraging, while expanding into new areas through M&A activities instills optimism. While near-term headwinds from both internal and external pressures remain, the company’s financial strength and a P/S below the industry suggest potential for long-term stability. For now, holding onto HOLX stock seems like a prudent choice.
Meanwhile, Quest Diagnostics, as a clinical laboratory services company, sees strong growth opportunities in the women’s and reproductive health space. Steady growth from Advanced Diagnostics and contributions from recent acquisitions are highly promising. Further, the stock’s recent favorable performance, attractive valuation and upward analyst estimate revisions make it an equally compelling case to stay invested.
Image: Bigstock
HOLX vs. DGX: Which Women's Health-Focused Stock Is the Better Pick?
With women’s health increasingly becoming a global priority, investors are actively targeting companies operating in this space to boost their portfolios. Research and Markets projects the women’s health diagnostics market to expand at a compound annual rate of 9.25% through 2030, driven by technological advancements, increasing healthcare expenditures, and initiatives for early detection of women-specific conditions like reproductive health issues, breast cancer, osteoporosis and more. Two U.S. healthcare innovators, Hologic (HOLX - Free Report) and Quest Diagnostics (DGX - Free Report) , have established a strong foothold in this space, each with its own areas of specialization.
Hologic, with a market cap of $12.10 billion, develops products and services across the women’s healthcare continuum, such as advanced diagnostics products, medical imaging systems and surgical products. In comparison, Quest Diagnostics, with a market cap of $19.12 billion, provides a comprehensive portfolio of diagnostic tests for all stages of a woman’s life — from routine screenings like cervical cancer and sexually transmitted infections (STIs) to pregnancy and fertility testing.
Between these two, which one stands out as the smarter pick now? Let’s dive deep into their fundamentals, growth drivers and challenges to find out.
The Case for Hologic
The Marlborough, MA-based company benefits from its strategy of building multiple durable growth drivers across all its global franchises. Key offerings include Aptima and Panther Fusion assays for sexually transmitted diseases (STDs), vaginitis and respiratory infections. The BV/CV/TV assay shows strong double-digit growth, supported by rising awareness and reimbursement in the U.S. vaginitis market. Molecular growth is further backed by the Biotheranostics business, driven by the rising adoption of the Breast Cancer Index test. However, weaker HIV testing in Africa due to federal funding cuts affected the fiscal 2025 second-quarter performance and is likely to persist.
Hologic is seeing strong adoption of the Genius Digital Diagnostics System — the first FDA-cleared digital cytology system for cervical cancer screening, combining novel artificial intelligence (AI) with advanced imaging. However, Q2 International cytology and perinatal sales were impacted by South Korea’s physician strike and reduced hospital spending in China.
On the MedTech side, the company’s mammography products continue to command leading market shares. In the second quarter, recurring service revenues (more than 45% of total Breast Health revenues) rose 12% year over year. The addition of Endomagnetics enhanced its Interventional Breast portfolio, with Hologic now selling its products directly through its U.S. salesforce to tap into wireless localization market opportunities. However, as anticipated, softer capital equipment sales caused the segment’s revenues to decline 7.4%.
Internationally, the Surgical business continues to be a standout. The company demonstrates sound financial health, with the flexibility to execute both tuck-in M&A and share repurchases. Still, macroeconomic challenges, including the ongoing trade war in China, have affected its 2025 outlook. Tariffs are expected to impact manufacturing costs by $20 million to $25 million per quarter, with two-thirds of it tied to imports from Costa Rica.
The Case for Quest Diagnostics
Based in Secaucus, NJ, Quest Diagnostics is experiencing strong growth in Women's and Reproductive Health, one of its five key clinical areas where it offers Advanced Diagnostics. The growth is largely driven by prenatal and hereditary genetic testing over the past several quarters. In March 2025, the company launched a new solution that allows patients to self-collect a specimen for human papillomavirus (HPV) cervical cancer screening in a physician's office or other healthcare setting. The test uses Roche’s (RHHBY - Free Report) HPV self-collection solution and builds on Quest Diagnostics’ STI-related self-collection option, introduced in October last year.
Other clinical areas — advanced cardiometabolic, autoimmune, brain health and oncology — also posted double-digit growth in the first quarter of 2025, contributing to the 12% year-over-year revenue increase. Recent introductions include a laboratory-developed test to confirm Alzheimer's disease (AD) pathology in symptomatic patients and the Haystack MRD — its first circulating tumor DNA (ctDNA) minimal residual disease (MRD) test for assessing early risk of cancer recurrence. The company continues expanding the Advanced Diagnostics portfolio to enable growth across its core channels: Physicians, Hospitals and Consumers.
In 2024, Quest Diagnostics completed eight acquisitions, including LifeLabs in Canada, and formed new health plan relationships. These favorably impacted both Q1 Diagnostic Information Services sales and adjusted operating income, translating to 8.3% growth in adjusted earnings per share (EPS). The company also became the first independent lab in the Optum Health preferred network. In February, Quest Diagnostics extended its chronic kidney disease test portfolio to include dialysis-related laboratory and water testing capabilities via a new agreement with Fresenius Medical Care (FMS - Free Report) .
Operationally, Quest Diagnostics is increasing the use of automation, robotics and AI across the business to drive productivity gains and improve user experience. The company teamed up with Google Cloud to streamline data management using generative AI. Despite broader economic pressures, Quest Diagnostics reaffirmed its 2025 revenue and adjusted EPS guidance. Yet, its escalating debt levels are a concern, ending the first quarter with $5.86 billion in long-term debt and just $188 million in cash and cash equivalents.
Estimate Movement for HOLX and DGX
The Zacks Consensus Estimate for Hologic’s fiscal 2025 sales and EPS implies a year-over-year improvement of 1.2% and 3.2%, respectively. The bottom-line estimates have shown mixed movements in the last 30 days. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DGX’s 2025 sales and EPS suggests a year-over-year improvement of 9.2% and 8.6%, respectively. Analysts seem more bullish on Quest Diagnostics, given the upward EPS estimate revisions in the last 30 days.
Image Source: Zacks Investment Research
Price Performance of HOLX & DGX
In the past six months, Hologic’s shares have plunged significantly, down 31.6%, while the benchmark S&P 500 slipped just 3.2%. In contrast, Quest Diagnostics held its ground with a 4.9% gain.
Image Source: Zacks Investment Research
Assessing HOLX & DGX Valuation
Hologic is trading at a forward price-to-sales (P/S) multiple of 2.87X, higher than Quest Diagnostics’ 1.75X P/S over the last five years. However, both HOLX and DGX appear discounted when compared to their respective industry averages of 4.04X and 2.71X. Each of them has a Value score of B.
Image Source: Zacks Investment Research
HOLX or DGX: Which Stock to Pick?
As a pure-play in women’s health, Hologic continues to benefit from its diversified revenue model and growth drivers. International prospects are encouraging, while expanding into new areas through M&A activities instills optimism. While near-term headwinds from both internal and external pressures remain, the company’s financial strength and a P/S below the industry suggest potential for long-term stability. For now, holding onto HOLX stock seems like a prudent choice.
Meanwhile, Quest Diagnostics, as a clinical laboratory services company, sees strong growth opportunities in the women’s and reproductive health space. Steady growth from Advanced Diagnostics and contributions from recent acquisitions are highly promising. Further, the stock’s recent favorable performance, attractive valuation and upward analyst estimate revisions make it an equally compelling case to stay invested.
HOLX and DGX each carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.