Latest news with #Hologic
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2 days ago
- Business
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How Is Hologic's Stock Performance Compared to Other Health Care Equipment Stocks?
With a market cap of $14.3 billion, Hologic, Inc. (HOLX) is a Massachusetts-based medical technology firm, primarily focused on women's health. The company develops, manufactures, and sells a comprehensive suite of solutions, including molecular diagnostics, medical imaging systems, and surgical devices Companies worth $10 billion or more are generally described as 'large-cap stocks,' and Hologic fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the medical instruments & supplies industry. The company benefits from robust innovation, supported by over 7,000 patents, which fuels its proprietary technologies and product differentiation. Its diagnostics segment, particularly in molecular testing, has shown strong growth, positioning Hologic well in the expanding global healthcare market. 2 Outstanding Stocks Under $50 to Buy and Hold Now Nvidia's Bringing Sovereign AI to Germany. Should You Buy NVDA Stock Here? A $1 Billion Reason to Buy MicroStrategy Stock Here Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. However, HOLX shares have retreated 24.5% from their 52-week high of $84.67 touched on Aug. 9, 2024. Meanwhile, HOLX stock has surged 3.2% over the past three months, surpassing the SPDR S&P Health Care Equipment ETF's (XHE) 4.8% plunge over the same time frame. HOLX stock has plummeted 11.3% on a YTD basis and 10.5% over the past 52 weeks, compared to XHE's 10.6% dip in 2025 and a 6.3% fall over the past year. The stock has remained consistently below its 200-day moving average since early December last year, but has climbed above its 50-day moving average since late May. On May 27, HOLX shares surged more than 14%, leading S&P 500 gainers, after reports emerged that TPG Inc. (TPG) and Blackstone Inc. (BX) made (and were turned down on) a non-binding ~$16 billion takeover bid, valuing the company at $70–$72 per share. The stock's rally reflected investor optimism and underscored the premium valuation placed on its leadership in women's health and diagnostic capabilities. In the competitive healthcare equipment industry, top rival, Align Technology, Inc.'s (ALGN) 13.7% drop on a YTD basis and 25.7% decline over the past year trails HOLX's losses in the same time frames. Among the 19 analysts covering the HOLX stock, the consensus rating is a 'Moderate Buy.' Its mean price target of $68.27 suggests a 6.7% upside potential from current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
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Hologic (HOLX) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Hologic (HOLX) closed at $64.14, marking a -1.6% move from the previous day. This move lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw a decrease of 0.91%. Coming into today, shares of the medical device maker had gained 14.77% in the past month. In that same time, the Medical sector gained 0%, while the S&P 500 gained 1.44%. The investment community will be paying close attention to the earnings performance of Hologic in its upcoming release. The company is expected to report EPS of $1.06, unchanged from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.01 billion, indicating a 0.39% downward movement from the same quarter last year. HOLX's full-year Zacks Consensus Estimates are calling for earnings of $4.2 per share and revenue of $4.08 billion. These results would represent year-over-year changes of +2.94% and +1.16%, respectively. 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.27% decrease. Hologic presently features a Zacks Rank of #4 (Sell). Looking at its valuation, Hologic is holding a Forward P/E ratio of 15.52. This denotes a discount relative to the industry average Forward P/E of 26.88. It is also worth noting that HOLX currently has a PEG ratio of 2.39. 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. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices. The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 39% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. 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 Hologic, Inc. (HOLX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
6 days ago
- Business
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Hologic's Margin Stability Amid Tariffs: What's Behind the Confidence?
Hologic HOLX, a women's health-focused company, delivered a non-GAAP gross margin of 61.1% in the second quarter of fiscal 2025, up 40 basis points (bps) from the year-ago period. This was fueled by strong diagnostic sales and contributions from two recent high-margin additions — Endomagnetics and Gynesonics. While these acquisitions raised operating expenses by 1.7%, excluding them, costs were down 4.6% year over year, reflecting disciplined cost management despite a 0.5% dip in revenues at constant currency. Despite these integrations, Hologic posted a 30% operating margin in the quarter, which remains among the strongest in its peer group and also increased 60 bps sequentially. Amid ongoing macroeconomic volatility, Hologic has taken a cautious stance on its full-year outlook. Tariffs tied to its manufacturing operations in China and Costa Rica are expected to add $20 million-$25 million to the quarterly cost of goods sold. The company also lowered its China revenue forecast by roughly $20 million to just $50 million, reducing exposure to future geopolitical risks. Following the end of USAID funding, Hologic removed its $50 million HIV testing business from Molecular Diagnostics projections. Still, the Diagnostics segment is expected to lead the overall growth for the year, rising in the mid-single digits. Surgical is expected to grow in the high-single digits, supported by Gynesonics, International sales momentum and the strong uptake of the new Fluent Pro Fluid Management System. Further, an accelerated recovery in Skeletal product supply is also expected to boost performance. Together, these factors support Hologic's ability to deliver gross margins in the low 60s for the full year, even as the P&L impact of the tariffs intensifies. The operating margin is also forecasted to remain healthy in the low 30s. GE Healthcare GEHC posted an 80 bps year-over-year adjusted gross margin improvement in the first quarter of 2025 due to volume growth and new, higher-margin products. GEHC's adjusted EBIT margin of 15% improved 30 bps, led by ongoing productivity initiatives. For the full year, GE Healthcare now expects 14.2%-14.4% in the adjusted EBIT margin for the full year, with approximately $475 million of additional tariff-related costs since its February guidance. Bio-Rad BIO, operating in the molecular diagnostics space, delivered a non-GAAP gross margin of 53.8%, down 0.7% year over year. Meanwhile, BIO's non-GAAP operating margin increased 11.3% year over year to 10.8%, which also topped the consensus. Bio-Rad expects a net tariff headwind of 130 bps to its operating margin for 2025, mainly from shipping U.S.-manufactured products to China. In the past six months, Hologic shares have dropped 10.4% compared with the industry's decline of 13.8%. Image Source: Zacks Investment Research From a valuation standpoint, HOLX trades at a forward 12-month price-to-sales (P/S) of 3.42X, well above the sector. It carries a Value Score of B. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Hologic's fiscal 2025 earnings implies a 2.9% improvement year over year. Image Source: Zacks Investment Research HOLX stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Hologic, Inc. (HOLX) : Free Stock Analysis Report Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report GE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
13-06-2025
- Business
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2 Safe-and-Steady Stocks to Research Further and 1 to Approach with Caution
A stock with low volatility can be reassuring, but it doesn't always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere. Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here are two low-volatility stocks that could succeed under all market conditions and one that may not keep up. Rolling One-Year Beta: -0.23 As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ:HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness. Why Does HOLX Give Us Pause? Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 23.2 percentage points Waning returns on capital imply its previous profit engines are losing steam At $64.69 per share, Hologic trades at 14.7x forward P/E. If you're considering HOLX for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.18 Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE:HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses. Why Are We Bullish on HRB? Remarkable 30.5% revenue growth over the last five years demonstrates its ability to capture significant market share Share repurchases have amplified shareholder returns as its annual earnings per share growth of 41.5% exceeded its revenue gains over the last five years Industry-leading 56.7% return on capital demonstrates management's skill in finding high-return investments, and its returns are growing as it capitalizes on even better market opportunities H&R Block is trading at $56.28 per share, or 16.4x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our full research report, it's free. Rolling One-Year Beta: 0.54 With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions. Why Does SYK Catch Our Eye? Core business is healthy and doesn't need acquisitions to boost sales as its organic revenue growth averaged 10.4% over the past two years $23.22 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives Has the option to reinvest or return capital to investors as its 14.6% free cash flow margin is well above its peers Stryker's stock price of $379 implies a valuation ratio of 27.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
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Hologic Climbs 13% in a Month: How Should You Play the Stock?
After lagging for months, Hologic HOLX has picked up momentum in recent weeks. Shares of the Marlborough, MA-based company have climbed 13.3% over the past month, higher than the industry and the broader Medical sector's gains of 2.4% and 3.4%, respectively. The current price is now 23.9% above the 52-week low of $51.90, boosted in part by reports that Hologic declined a private takeover bid from TPG and Blackstone. HOLX has also managed to outperform two of its key competitors — Exact Sciences EXAS and Becton, Dickinson and Company BDX, or BD, in the same time frame. Image Source: Zacks Investment Research Investor sentiment was already subdued after the release of the company's fiscal 2025 second-quarter earnings in early May. Hologic met adjusted EPS expectations with a modest revenue beat but revised its annual outlook due to the growing tariff impact from China and Costa Rica, funding cuts affecting the Africa business, and a soft capital equipment market. In contrast, Exact Sciences anticipates 'little to no tariff impact' due to all domestic operations, while BD expects $90 million in tariff expenses for fiscal 2025, mostly from China imports. That said, let's explore what might be driving Hologic's recent rally. On May 27, HOLX shares rose nearly 15% following a report from the Financial Times that the company turned down a non-binding offer from private equity (PE) firms TPG and Blackstone. The deal was valued at up to $16.7 billion, including debt. These firms, known for their solid history of healthcare investments, teamed up last year to explore a potential acquisition of Bausch + Lomb, which eventually did not happen. The proposed takeover bid of Hologic would have been one of the largest leveraged buyouts of the year, valuing the company's shares between $70 and $72 — roughly a 30% premium to the May 23 closing price of $54.28. The report also stated that there is a possibility the deal discussions might resume, according to people with knowledge of the matter. Hologic has attracted buyers' attention for a while now. Of late, the take-private activities by PE firms have seen a sharp increase, such as Sycamore Partners' $24 billion deal for Walgreens Boots Alliance, Thoma Bravo's $10.6 billion acquisition of Boeing's software unit, and 3G Capital's $10.5 billion deal for Skechers. Nonetheless, the high premium in the offer signals strong confidence in Hologic's growth potential. The company presented new data showing the significant clinical impact of the Breast Cancer Index ('BCI') test at the 2025 American Society of Clinical Oncology Annual Meeting held on June 2. The molecular, gene expression-based test from Hologic's subsidiary, Biotheranostics, has been a key growth driver in the molecular diagnostics business over the past few quarters. The latest data from the prospective, multi-center BCI Registry Study highlights how this genomic test plays a critical role in guiding extended endocrine therapy decisions for women with early-stage, hormone receptor-positive (HR+) breast cancer. With more than 2,800 patients involved, the study found that BCI testing led to a change in treatment recommendations for about four in 10 cases. Additionally, physicians' confidence in their treatment recommendations got a boost, while patients felt comfortable in their decisions, citing fewer concerns about cost, drug safety and preference related to extended endocrine therapy benefits. Hologic looks attractive from a valuation standpoint. The stock has been trading at a price-to-sales (P/S) of 3.40X over the past five years compared to its median of 4.33X and the industry average of 4.16X. It has a Value Score of B at present. Image Source: Zacks Investment Research Meanwhile, both Exact Sciences and BD are trading at a premium to their industry average, with P/S of 3.16X and 2.20X respectively. Molecular Diagnostics assays are likely to continue to be the principal revenue-generating component in the Diagnostics division. As Hologic drives awareness and reimbursement in the highly unpenetrated U.S. vaginitis market, the BV CV/TV assay is poised to see a strong uptake. Aligning with its long-term revenue diversification strategy, the company's Breast Health service revenues are now larger and growing more steadily than the gantry business. The 2024 acquisition of Endomagnetics boosted the Interventional Breast portfolio with market-leading product lines and strong R&D capabilities for further portfolio expansion. The upcoming launch of innovations like the Envision Mammography Platform is likely to gain a favorable reception. In Surgical, Myosure's strong international growth points to the high demand for minimally invasive options for treating uterine polyps and fibroids. Hologic continues to expand this division both organically and through acquisitions such as Gynsesonics, leveraging its established sales channel. Further, the company is building capabilities to grow internationally on a consistent basis by going directly into more geographies and businesses. A consistently strong profitability has contributed to a fortress balance sheet over time, allowing Hologic to execute on both tuck-in M&A and share repurchases. Based on short-term price targets offered by 15 analysts, the Zacks average price target is $68.13 per share. The average suggests a potential 8.02% upside from last Friday's closing price. Image Source: Zacks Investment Research Hologic has some promising catalysts for long-term expansion, supported by an attractive valuation relative to its industry. However, despite outperforming peers over the past month, the Zacks Rank #3 (Hold) stock is navigating a turbulent macroeconomic landscape, which is expected to weigh on its financial performance in the near term. Hence, those eyeing HOLX may find it wise to wait for a better entry point, while current shareholders should retain their position. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Becton, Dickinson and Company (BDX) : Free Stock Analysis Report Hologic, Inc. (HOLX) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
