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HOLX vs. TMO: Which Diagnostic Giant Is the Stronger Buy Today?
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Key Takeaways
Hologic drives growth in Molecular Diagnostics, oncology and GYN Surgical, backed by acquisitions.
Thermo Fisher expands via acquisitions like Olink and Solventum while launching key lab innovations.
HOLX stock gained 4.2% in six months, while TMO fell 7.7%, with both raising full-year guidance.
In the fast-growing diagnostics landscape, Hologic (HOLX - Free Report) and Thermo Fisher Scientific (TMO - Free Report) are two prominent players, each with its own focus and strengths. Hologic, with a market cap of $14.75 billion, specializes in molecular diagnostic assays for infectious diseases centered on women’s health, including sexually transmitted diseases (STDs) and hepatitis, along with tests for acute respiratory infections. These run on the company’sadvanced instrumentation systems, Panther and Panther Fusion.
In contrast, Thermo Fisher is much larger, with a valuation of $181.10 billion, offering a broad range of diagnostic test kits, reagents, culture media, instruments and related products to support faster, accurate, and cost-efficient patient care across healthcare, clinical, pharmaceutical, industrial and food safety laboratories.
With both companies navigating a challenging macroeconomic backdrop, let's compare which one emerges as a more favorable investment option right now.
The Case for Hologic
Based in Marlborough, MA, Hologic has experienced much of the forecasted geopolitical impact on its Diagnostics segment this year, including funding cuts to USAID in Africa and China’s challenging environment. Despite this, the core growth drivers remain strong. Molecular Diagnostics leads the growth, supported by the high adoption of the BV, CV/TV assay. Since its 2019 launch, the test has become Hologic’s second-largest globally, mainly through converting manual tests to the fully automated Panther system. Hologic is making progress in increasing awareness and securing reimbursement, tapping into a significant opportunity in the U.S. vaginitis market.
In the Biotheranostics oncology business, the adoption of the Breast Cancer Index test is gaining momentum. The company’s Genius Digital Diagnostics system is also receiving positive feedback from labs around the world for its workflow advantages, bolstering long-term prospects in Cytology. Meanwhile, Hologic’s Breast Health business is rebounding. It is on the path to return to growth in the fourth quarter of fiscal 2025. The improvement reflects better commercial execution by the new leadership team, ongoing innovations and solid contributions from the 2024 acquisition of Endomagnetics.
The company is seeing strong momentum across its entire GYN Surgical portfolio internationally, along with strong adoption in markets where reimbursement for its minimally invasive products is established. Earlier this year, Hologic acquired Gynesonics in this division, expanding the fibroid portfolio, which consists of MyoSure and Acessa.
Backed by a fortress balance sheet, Hologic is able to pursue both tuck-in acquisitions and share repurchases. As of the third quarter-end, it had $1.88 billion in cash and short-term investments, $343 million in operating cash flow and a net leverage ratio of 0.6.
Cost management is also a focus, with tariffs tied to its operations in Costa Rica and China expected to add $10-$12 million in costs per quarter in fiscal 2026, representing nearly 100 basis points of headwinds to the gross margin. Hologic lifted the midpoints of its full-year guidance, projecting revenues of $1.03-$1.04 billion and adjusted earnings per share (EPS) of $1.09-$1.12.
The Case for Thermo Fisher
Waltham, MA-based Thermo Fisher is consistently gaining from strong growth in its bioproduction and pharma services businesses, and the research and safety market channel. The company emphasizes high-impactful innovations, marked by several notable launches this year, including the Thermo Scientific Vulcan Automated Lab and two next-generation Thermo Scientific Orbitrap mass spectrometers.
Additionally, the company continues to strengthen its other two growth pillars — trusted partner status with customers and a top-tier commercial engine. The Accelerator Drug Development solution, introduced last year, is seeing strong customer uptake. It combines Pharma Services and clinical research capabilities to ultimately reduce the time and cost of the drug development process. Thermo Fisher also acquired Sanofi’s sterile fill-finish and packaging site in Ridgefield, NJ, under an expanded strategic partnership between the companies for additional U.S. drug product manufacturing.
At the same time, it has a capital deployment strategy that combines strategic M&A and shareholder returns. The recent acquisition of Solventum’s Purification and Filtration business is set to expand the company’s bioproduction offerings with advanced filtration technologies. Another major buyout, Olink, advanced Thermo Fisher’s capabilities in the high-growth proteomics market.
Operationally, the company’s Practical Process Improvement Business System is driving competitive advantage in a tariff-impacted environment. The aggressive cost management actions help deliver strong bottom-line growth, with the company now enhancing it further with AI to streamline internal processes and reduce costs.
As of June 28, 2025, Thermo Fisher had $6.39 billion in cash and short-term investments against a short-term debt of $2.21 billion. The company projects revenues to be between $43.6 and $44.2 billion and adjusted earnings in the range of $22.22-$22.84 per share for the full year, both of which have been raised from prior estimates. Meanwhile, the U.S. administration’s policy focus is likely to have the largest impact on the company’s U.S. academic and government customers, as well as those in China, leading to more muted demand for equipment and instrumentation.
HOLX and TMO: Price Performance and Valuation
In the last six months, HOLX shares have gained 4.2%, outpacing Thermo Fisher stock’s 7.7% fall.
Image Source: Zacks Investment Research
Valuation-wise, Hologic shares are trading at a forward five-year price/earnings (P/E) of 14.41X, lower than Thermo Fisher’s P/E of 20.12X.
Image Source: Zacks Investment Research
Estimate Picture: HOLX & TMO
The Zacks Consensus Estimate for Hologic’s fiscal 2025 EPS implies year-over-year growth of 3.7% to $4.23. Over the past 60 days, the estimate has increased 0.7%.
Image Source: Zacks Investment Research
Meanwhile, the consensus mark for Thermo Fisher’s 2025 EPS of $22.52 has edged up 0.8% in the past 60 days. The estimate indicates a 3% improvement over 2024.
Image Source: Zacks Investment Research
HOLX or TMO: Which One to Pick?
Both companies maintain solid fundamentals and financial stability, as well as disciplined cost controls. Thermo Fisher’s robust investments in innovations and commercial pipeline, along with its reputation as a partner, position it well for continued share gains. Hologic’s strong momentum in Molecular Diagnostics and GYN Surgical deserves praise, with its ongoing actions for Breast Health recovery signaling resilience. Analysts are projecting upbeat earnings for both companies, which is promising. However, in terms of stock performance and valuation, Hologic has the edge and appears to be a more favorable option.
Image: Bigstock
HOLX vs. TMO: Which Diagnostic Giant Is the Stronger Buy Today?
Key Takeaways
In the fast-growing diagnostics landscape, Hologic (HOLX - Free Report) and Thermo Fisher Scientific (TMO - Free Report) are two prominent players, each with its own focus and strengths. Hologic, with a market cap of $14.75 billion, specializes in molecular diagnostic assays for infectious diseases centered on women’s health, including sexually transmitted diseases (STDs) and hepatitis, along with tests for acute respiratory infections. These run on the company’sadvanced instrumentation systems, Panther and Panther Fusion.
In contrast, Thermo Fisher is much larger, with a valuation of $181.10 billion, offering a broad range of diagnostic test kits, reagents, culture media, instruments and related products to support faster, accurate, and cost-efficient patient care across healthcare, clinical, pharmaceutical, industrial and food safety laboratories.
With both companies navigating a challenging macroeconomic backdrop, let's compare which one emerges as a more favorable investment option right now.
The Case for Hologic
Based in Marlborough, MA, Hologic has experienced much of the forecasted geopolitical impact on its Diagnostics segment this year, including funding cuts to USAID in Africa and China’s challenging environment. Despite this, the core growth drivers remain strong. Molecular Diagnostics leads the growth, supported by the high adoption of the BV, CV/TV assay. Since its 2019 launch, the test has become Hologic’s second-largest globally, mainly through converting manual tests to the fully automated Panther system. Hologic is making progress in increasing awareness and securing reimbursement, tapping into a significant opportunity in the U.S. vaginitis market.
In the Biotheranostics oncology business, the adoption of the Breast Cancer Index test is gaining momentum. The company’s Genius Digital Diagnostics system is also receiving positive feedback from labs around the world for its workflow advantages, bolstering long-term prospects in Cytology. Meanwhile, Hologic’s Breast Health business is rebounding. It is on the path to return to growth in the fourth quarter of fiscal 2025. The improvement reflects better commercial execution by the new leadership team, ongoing innovations and solid contributions from the 2024 acquisition of Endomagnetics.
The company is seeing strong momentum across its entire GYN Surgical portfolio internationally, along with strong adoption in markets where reimbursement for its minimally invasive products is established. Earlier this year, Hologic acquired Gynesonics in this division, expanding the fibroid portfolio, which consists of MyoSure and Acessa.
Backed by a fortress balance sheet, Hologic is able to pursue both tuck-in acquisitions and share repurchases. As of the third quarter-end, it had $1.88 billion in cash and short-term investments, $343 million in operating cash flow and a net leverage ratio of 0.6.
Cost management is also a focus, with tariffs tied to its operations in Costa Rica and China expected to add $10-$12 million in costs per quarter in fiscal 2026, representing nearly 100 basis points of headwinds to the gross margin. Hologic lifted the midpoints of its full-year guidance, projecting revenues of $1.03-$1.04 billion and adjusted earnings per share (EPS) of $1.09-$1.12.
The Case for Thermo Fisher
Waltham, MA-based Thermo Fisher is consistently gaining from strong growth in its bioproduction and pharma services businesses, and the research and safety market channel. The company emphasizes high-impactful innovations, marked by several notable launches this year, including the Thermo Scientific Vulcan Automated Lab and two next-generation Thermo Scientific Orbitrap mass spectrometers.
Additionally, the company continues to strengthen its other two growth pillars — trusted partner status with customers and a top-tier commercial engine. The Accelerator Drug Development solution, introduced last year, is seeing strong customer uptake. It combines Pharma Services and clinical research capabilities to ultimately reduce the time and cost of the drug development process. Thermo Fisher also acquired Sanofi’s sterile fill-finish and packaging site in Ridgefield, NJ, under an expanded strategic partnership between the companies for additional U.S. drug product manufacturing.
At the same time, it has a capital deployment strategy that combines strategic M&A and shareholder returns. The recent acquisition of Solventum’s Purification and Filtration business is set to expand the company’s bioproduction offerings with advanced filtration technologies. Another major buyout, Olink, advanced Thermo Fisher’s capabilities in the high-growth proteomics market.
Operationally, the company’s Practical Process Improvement Business System is driving competitive advantage in a tariff-impacted environment. The aggressive cost management actions help deliver strong bottom-line growth, with the company now enhancing it further with AI to streamline internal processes and reduce costs.
As of June 28, 2025, Thermo Fisher had $6.39 billion in cash and short-term investments against a short-term debt of $2.21 billion. The company projects revenues to be between $43.6 and $44.2 billion and adjusted earnings in the range of $22.22-$22.84 per share for the full year, both of which have been raised from prior estimates. Meanwhile, the U.S. administration’s policy focus is likely to have the largest impact on the company’s U.S. academic and government customers, as well as those in China, leading to more muted demand for equipment and instrumentation.
HOLX and TMO: Price Performance and Valuation
In the last six months, HOLX shares have gained 4.2%, outpacing Thermo Fisher stock’s 7.7% fall.
Image Source: Zacks Investment Research
Valuation-wise, Hologic shares are trading at a forward five-year price/earnings (P/E) of 14.41X, lower than Thermo Fisher’s P/E of 20.12X.
Image Source: Zacks Investment Research
Estimate Picture: HOLX & TMO
The Zacks Consensus Estimate for Hologic’s fiscal 2025 EPS implies year-over-year growth of 3.7% to $4.23. Over the past 60 days, the estimate has increased 0.7%.
Image Source: Zacks Investment Research
Meanwhile, the consensus mark for Thermo Fisher’s 2025 EPS of $22.52 has edged up 0.8% in the past 60 days. The estimate indicates a 3% improvement over 2024.
Image Source: Zacks Investment Research
HOLX or TMO: Which One to Pick?
Both companies maintain solid fundamentals and financial stability, as well as disciplined cost controls. Thermo Fisher’s robust investments in innovations and commercial pipeline, along with its reputation as a partner, position it well for continued share gains. Hologic’s strong momentum in Molecular Diagnostics and GYN Surgical deserves praise, with its ongoing actions for Breast Health recovery signaling resilience. Analysts are projecting upbeat earnings for both companies, which is promising. However, in terms of stock performance and valuation, Hologic has the edge and appears to be a more favorable option.
HOLX and TMO each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.