We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HOLX vs. ABT: Which Medical Technology Stock Is the Better Investment?
Read MoreHide Full Article
Key Takeaways
Hologic agreed to a $79-per-share buyout with Blackstone and TPG, a 46% premium to May prices.
HOLX investors eye Breast Health growth and Q4 earnings as the deal awaits 2026 completion.
Abbott posted Q3 strength in pharmaceuticals, Diabetes Care and Nutrition, led by Libre and Ensure.
Hologic (HOLX - Free Report) and Abbott (ABT - Free Report) are two of the biggest names in the U.S. MedTech industry. Abbott’s business is far more diversified, encompassing diagnostics, medical devices, nutrition and branded generic pharmaceuticals. In contrast, Hologic specializes in women’s health and well-being, offering premium diagnostics, medical imaging, and surgical solutions that aid in early detection and treatment.
Via an Oct. 21 release, Hologic confirmed plans to go private after reaching an agreement with private equity firms Blackstone and TPG. The deal, valued at up to $79 per share, or nearly $18.3 billion, represents a 46% premium to the company’s May 23 close, the day before media reports of a possible transaction surfaced. Under the agreement, shareholders will receive $76 per share in cash and a non-tradable contingent value right (CVR) of up to $3 per share, split into two payments of up to $1.50 each, tied to meeting Breast Health revenue goals in fiscal 2026 and 2027.
Shares moved higher on the announcement, gaining 2.9% and closing at $73.98 yesterday. This implies an upside potential of 2.7% to the $76 offer, assuming the deal gets stockholder approval and other customary closing conditions ahead of the expected first-half 2026 completion. The question now is whether the small gap is worth waiting for.
The Case for Staying Bullish on Hologic Ahead of Q4 Release
Investors will be watching the Breast Health results closely when Hologic reports its fourth-quarter fiscal 2025 earnings on Nov. 3. The segment is likely to have achieved its anticipated return to growth, building on the previous quarter’s optimistic progress. Improvement is expected to have been driven by solid execution of the new leadership, including a bifurcated sales structure between capital and disposables and the rollout of an end-of-life strategy for older gantries. The Interventional performance may have been solid, aided by the addition of Endomagnetics in organic revenues.
In Diagnostics, growth in the Molecular Diagnostics unit may have been supported by the BV, CV/ TV assay. Biotheranostics is likely to have benefited from the strong adoption of the Breast Cancer Index test. Growth in GYN Surgical is expected to have been driven by the International unit, reflecting strong performance in newly reimbursed markets and more geographic expansion.
Highlights From Abbott’s Q3 Earnings
Strong Outlook for Established Pharmaceuticals: In the third quarter of 2025, Abbott’s Established Pharmaceuticals sales increased 7% year over year, led by double-digit growth in the key 15 markets. Several therapeutic areas — including gastroenterology, cardiometabolic and pain management — performed strongly, supported by favorable demographics and growing demand for affordable, high-quality medicines. The company also advanced its biosimilar strategy, progressing regulatory approvals and staying on track with planned product expansion initiatives.
Libre Drives Diabetes Care: Abbott’s Diabetes Care business continued to benefit from FreeStyle Libre, which has demonstrated global leadership in continuous glucose monitoring systems (CGM) for both Type 1 and Type 2 users. CGM sales increased 17% year over year in the third quarter, with sustained demand and market share gains in both the United States and international markets.
Nutrition Momentum Continues: Despite softness in certain international pediatric markets, Abbott’s Nutrition achieved growth in the third quarter. The Ensure brand remains the principal revenue driver in the Adult Nutrition portfolio, backed by strong brand recognition and favorable demographic and dietary trends. International Adult Nutrition sales climbed 10%, driven by sustained demand for Ensure and Glucerna.
Price Target
Based on short-term price targets by 15 analysts, the average price target for Hologic comes to $75.86, implying a 2.5% increase from the last close.
Image Source: Zacks Investment Research
Based on short-term price targets by 24 analysts, the average price target for Abbott of $146.29 implies a 15.5% upside from the last close.
Image Source: Zacks Investment Research
HOLX vs. ABT: Price Performance & Valuation
Year to date, both Hologic and Abbott have underperformed the benchmark S&P 500 composite.
Image Source: Zacks Investment Research
Based on the forward, five-year Price/Sales (P/S) ratio, Hologic and Abbott are trading below their median.
Image Source: Zacks Investment Research
Final Verdict
While Hologic’s going-private approach provides a clear valuation floor and limited downside risk, the narrow spread to the $76 cash consideration means near-term upside is modest. With fourth-quarter results approaching and key Breast Health execution milestones still being validated, we believe investors are better served waiting for greater clarity. Meanwhile, Abbott’s recent results demonstrate strong tailwinds for sustained long-term growth, making it a worthwhile investment option as well.
Image: Bigstock
HOLX vs. ABT: Which Medical Technology Stock Is the Better Investment?
Key Takeaways
Hologic (HOLX - Free Report) and Abbott (ABT - Free Report) are two of the biggest names in the U.S. MedTech industry. Abbott’s business is far more diversified, encompassing diagnostics, medical devices, nutrition and branded generic pharmaceuticals. In contrast, Hologic specializes in women’s health and well-being, offering premium diagnostics, medical imaging, and surgical solutions that aid in early detection and treatment.
Via an Oct. 21 release, Hologic confirmed plans to go private after reaching an agreement with private equity firms Blackstone and TPG. The deal, valued at up to $79 per share, or nearly $18.3 billion, represents a 46% premium to the company’s May 23 close, the day before media reports of a possible transaction surfaced. Under the agreement, shareholders will receive $76 per share in cash and a non-tradable contingent value right (CVR) of up to $3 per share, split into two payments of up to $1.50 each, tied to meeting Breast Health revenue goals in fiscal 2026 and 2027.
Shares moved higher on the announcement, gaining 2.9% and closing at $73.98 yesterday. This implies an upside potential of 2.7% to the $76 offer, assuming the deal gets stockholder approval and other customary closing conditions ahead of the expected first-half 2026 completion. The question now is whether the small gap is worth waiting for.
The Case for Staying Bullish on Hologic Ahead of Q4 Release
Investors will be watching the Breast Health results closely when Hologic reports its fourth-quarter fiscal 2025 earnings on Nov. 3. The segment is likely to have achieved its anticipated return to growth, building on the previous quarter’s optimistic progress. Improvement is expected to have been driven by solid execution of the new leadership, including a bifurcated sales structure between capital and disposables and the rollout of an end-of-life strategy for older gantries. The Interventional performance may have been solid, aided by the addition of Endomagnetics in organic revenues.
In Diagnostics, growth in the Molecular Diagnostics unit may have been supported by the BV, CV/ TV assay. Biotheranostics is likely to have benefited from the strong adoption of the Breast Cancer Index test. Growth in GYN Surgical is expected to have been driven by the International unit, reflecting strong performance in newly reimbursed markets and more geographic expansion.
Highlights From Abbott’s Q3 Earnings
Strong Outlook for Established Pharmaceuticals: In the third quarter of 2025, Abbott’s Established Pharmaceuticals sales increased 7% year over year, led by double-digit growth in the key 15 markets. Several therapeutic areas — including gastroenterology, cardiometabolic and pain management — performed strongly, supported by favorable demographics and growing demand for affordable, high-quality medicines. The company also advanced its biosimilar strategy, progressing regulatory approvals and staying on track with planned product expansion initiatives.
Libre Drives Diabetes Care: Abbott’s Diabetes Care business continued to benefit from FreeStyle Libre, which has demonstrated global leadership in continuous glucose monitoring systems (CGM) for both Type 1 and Type 2 users. CGM sales increased 17% year over year in the third quarter, with sustained demand and market share gains in both the United States and international markets.
Nutrition Momentum Continues: Despite softness in certain international pediatric markets, Abbott’s Nutrition achieved growth in the third quarter. The Ensure brand remains the principal revenue driver in the Adult Nutrition portfolio, backed by strong brand recognition and favorable demographic and dietary trends. International Adult Nutrition sales climbed 10%, driven by sustained demand for Ensure and Glucerna.
Price Target
Based on short-term price targets by 15 analysts, the average price target for Hologic comes to $75.86, implying a 2.5% increase from the last close.
Image Source: Zacks Investment Research
Based on short-term price targets by 24 analysts, the average price target for Abbott of $146.29 implies a 15.5% upside from the last close.
Image Source: Zacks Investment Research
HOLX vs. ABT: Price Performance & Valuation
Year to date, both Hologic and Abbott have underperformed the benchmark S&P 500 composite.
Image Source: Zacks Investment Research
Based on the forward, five-year Price/Sales (P/S) ratio, Hologic and Abbott are trading below their median.
Image Source: Zacks Investment Research
Final Verdict
While Hologic’s going-private approach provides a clear valuation floor and limited downside risk, the narrow spread to the $76 cash consideration means near-term upside is modest. With fourth-quarter results approaching and key Breast Health execution milestones still being validated, we believe investors are better served waiting for greater clarity. Meanwhile, Abbott’s recent results demonstrate strong tailwinds for sustained long-term growth, making it a worthwhile investment option as well.
HOLX and ABT each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.