Yahoo Finance Hologic (HOLX) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with Hologic (HOLX) standing at $71.65, reflecting a -1.15% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.16%.
Coming into today, shares of the medical device maker had lost 1.79% in the past month. In that same time, the Medical sector gained 2.3%, while the S&P 500 gained 2.83%.
The investment community will be paying close attention to the earnings performance of Hologic in its upcoming release. The company is forecasted to report an EPS of $1.02, showcasing a 9.68% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1 billion, up 1.66% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.08 per share and revenue of $4.04 billion, indicating changes of +3.03% and +0.13%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Hologic. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. At present, Hologic boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Hologic is currently trading at a Forward P/E ratio of 17.76. For comparison, its industry has an average Forward P/E of 24.41, which means Hologic is trading at a discount to the group.
It's also important to note that HOLX currently trades at a PEG ratio of 2.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Instruments industry currently had an average PEG ratio of 2.41 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 163, placing it within the bottom 36% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Hologic, Inc. (HOLX) : Free Stock Analysis Report
