Does Hologic (HOLX) Have a Compelling Valuation?

Sound Shore Management, an investment management firm, has released its investor letter for the second quarter of 2025. A copy of the letter can be downloaded here. The fund’s Investor Class (SSHFX) and Institutional Class (SSHVX) delivered 3.06% and 3.10%, respectively, in the second quarter of 2025 compared to a 3.79% return for the Russell 1000 Value Index (Russell Value) and 10.94% return for the Standard & Poor 500 Index (S&P 500). Sound Shore’s 35-year annualized returns were 14.92% and 15.14% for SSHFX and SSHVX, respectively, as of June 30, 2025, and were ahead of the Russell Value at 12.76% and trailed the S&P 500 at 19.71%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Sound Shore Management highlighted stocks such as Hologic, Inc. (NASDAQ:HOLX). Hologic, Inc. (NASDAQ:HOLX) is a medical instruments & supplies company that manufactures diagnostic products, medical imaging systems, and surgical products for women's health. The one-month return of Hologic, Inc. (NASDAQ:HOLX) was -3.75%, and its shares lost 18.55% of their value over the last 52 weeks. On September 10, 2025, Hologic, Inc. (NASDAQ:HOLX) stock closed at $65.50 per share, with a market capitalization of $14.57 billion.

Sound Shore Management stated the following regarding Hologic, Inc. (NASDAQ:HOLX) in its second quarter 2025 investor letter:

"In our first quarter letter, we discussed how some of our healthcare holdings impacted performance due to still undetermined regulatory policies. This uncertainty continued in the second quarter. Eventually, a clearer picture will emerge, but the myriad of proposals regarding Medicaid reimbursement, pharmaceutical pricing and tariffs have all contributed to a cloud over the group this year. As always, when there is a macro-led market drop, as we saw in March/April, we often take advantage of price dislocation and add to positions where we have the highest conviction. Similarly, we added to Hologic, Inc. (NASDAQ:HOLX), a medical technology supplier primarily focused on diagnostics and improving women's health. Rumors of a possible private equity buyout offer for the company surfaced in late May, which highlights the value within parts of the healthcare sector and Hologic’s particularly compelling valuation around 14 times earnings."

Hologic, Inc. (NASDAQ:HOLX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Hologic, Inc. (NASDAQ:HOLX) at the end of the second quarter, which was 46 in the previous quarter. In the fiscal third quarter of 2025, Hologic, Inc. (NASDAQ:HOLX) reported revenue of $1.024 billion, exceeding the guidance range. While we acknowledge the potential of Hologic, Inc. (NASDAQ:HOLX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Hologic, Inc. (NASDAQ:HOLX) and shared the list of most oversold stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.