Hologic (HOLX) Outperforms Broader Market: What You Need to Know

In the latest trading session, Hologic (HOLX) closed at $61.77, marking a +0.73% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 1.01%, while the tech-heavy Nasdaq depreciated by 0.14%.

Coming into today, shares of the medical device maker had lost 3.27% in the past month. In that same time, the Medical sector lost 3.93%, while the S&P 500 lost 6.22%.

Investors will be eagerly watching for the performance of Hologic in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.02, marking a 0.97% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1 billion, indicating a 1.56% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $4.28 per share and a revenue of $4.08 billion, demonstrating changes of +4.9% and +1.29%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Hologic. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% lower. Hologic is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Hologic has a Forward P/E ratio of 14.34 right now. Its industry sports an average Forward P/E of 27.51, so one might conclude that Hologic is trading at a discount comparatively.

Also, we should mention that HOLX has a PEG ratio of 2.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Medical - Instruments industry held an average PEG ratio of 2.44.

The Medical - Instruments industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research