Hologic (HOLX) Outpaces Stock Market Gains: What You Should Know

Hologic (HOLX) closed the most recent trading day at $63.39, moving +1.75% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.2%.

Prior to today's trading, shares of the medical device maker had lost 0.8% over the past month. This has lagged the Medical sector's gain of 4.55% and the S&P 500's gain of 1.06% in that time.

Wall Street will be looking for positivity from HOLX as it approaches its next earnings report date. On that day, HOLX is projected to report earnings of $1.10 per share, which would represent year-over-year growth of 46.67%. Meanwhile, our latest consensus estimate is calling for revenue of $1.04 billion, up 26.06% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.73 per share and revenue of $5.14 billion, which would represent changes of +94.22% and +36.11%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for HOLX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. HOLX is holding a Zacks Rank of #5 (Strong Sell) right now.

In terms of valuation, HOLX is currently trading at a Forward P/E ratio of 8.06. Its industry sports an average Forward P/E of 40.5, so we one might conclude that HOLX is trading at a discount comparatively.

Also, we should mention that HOLX has a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Instruments stocks are, on average, holding a PEG ratio of 3.3 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HOLX in the coming trading sessions, be sure to utilize Zacks.com.

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