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Why Hologic (HOLX) Outpaced the Stock Market Today

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In the latest trading session, Hologic (HOLX - Free Report) closed at $67.91, marking a +1.3% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.39%.

Coming into today, shares of the medical device maker had gained 1.21% in the past month. In that same time, the Medical sector gained 5.06%, while the S&P 500 gained 3.94%.

Market participants will be closely following the financial results of Hologic in its upcoming release. In that report, analysts expect Hologic to post earnings of $1.1 per share. This would mark year-over-year growth of 8.91%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.03 billion, indicating a 4.63% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.24 per share and a revenue of $4.08 billion, signifying shifts of +3.92% and 0%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Hologic. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Hologic is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Hologic is presently being traded at a Forward P/E ratio of 14.95. Its industry sports an average Forward P/E of 23.94, so one might conclude that Hologic is trading at a discount comparatively.

We can additionally observe that HOLX currently boasts a PEG ratio of 2.3. 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. As of the close of trade yesterday, the Medical - Instruments industry held an average PEG ratio of 2.52.

The Medical - Instruments industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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