Hologic (HOLX) ended the recent trading session at $66.33, demonstrating a -2.84% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.49%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.72%.
Shares of the medical device maker witnessed a gain of 1.64% over the previous month, trailing the performance of the Medical sector with its gain of 1.93%, and the S&P 500's gain of 2.99%.
The upcoming earnings release of Hologic will be of great interest to investors. In that report, analysts expect Hologic to post earnings of $1.1 per share. This would mark year-over-year growth of 8.91%. At the same time, our most recent consensus estimate is projecting a revenue of $1.03 billion, reflecting a 4.63% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.23 per share and revenue of $4.08 billion, indicating changes of +3.68% and +1.35%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Hologic. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Currently, Hologic is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Hologic currently has a Forward P/E ratio of 16.13. This indicates a discount in contrast to its industry's Forward P/E of 24.07.
Investors should also note that HOLX has a PEG ratio of 2.48 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Instruments industry currently had an average PEG ratio of 2.53 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Hologic, Inc. (HOLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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