Hologic (HOLX) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest market close, Hologic (HOLX) reached $77.38, with a -0.77% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.04%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw an increase of 0.03%.

Heading into today, shares of the medical device maker had gained 1.21% over the past month, outpacing the Medical sector's loss of 0.6% and lagging the S&P 500's gain of 2.57% in that time.

The upcoming earnings release of Hologic will be of great interest to investors. The company's earnings report is expected on May 2, 2024. In that report, analysts expect Hologic to post earnings of $0.98 per share. This would mark a year-over-year decline of 7.55%. In the meantime, our current consensus estimate forecasts the revenue to be $1 billion, indicating a 2.49% decline compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.02 per share and revenue of $4.02 billion, indicating changes of +1.52% and -0.19%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Hologic should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Hologic currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Hologic is currently exchanging hands at a Forward P/E ratio of 19.42. This signifies a discount in comparison to the average Forward P/E of 25.38 for its industry.

Meanwhile, HOLX's PEG ratio is currently 2.64. 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. As the market closed yesterday, the Medical - Instruments industry was having an average PEG ratio of 2.39.

The Medical - Instruments industry is part of the Medical sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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