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Marlborough, Massachusetts-based Hologic, Inc. (HOLX) develops, manufactures, and supplies diagnostics products, imaging systems, and surgical products for women's health through early detection and treatment worldwide. With a market cap of $14.5 billion, Hologic operates through Diagnostics, Breast Health, GYN Surgical, and Skeletal Health segments.
Hologic has significantly underperformed the broader market over the past year. HOLX stock has plummeted 14.2% over the past 52 weeks and 11.9% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 20.5% gains over the past year and 2.9% returns in 2025.
Zooming in further, HOLX has also underperformed the iShares U.S. Medical Devices ETF’s (IHI) 12.4% gains over the past year and 9.4% returns on a YTD basis.
Despite delivering better-than-expected financials for the quarter, Hologic’s stock prices plunged 10.1% in the trading session after the release of its Q1 results on Feb. 5. Although its revenues for the quarter observed a marginal 86 basis point increase compared to the year-ago quarter to $1.02 billion, it was in line with the Street’s expectations. Meanwhile, its non-GAAP EPS of $1.03 came at the high end of management’s guidance and surpassed the consensus estimates by 98 basis points.
However, observing the currency headwinds and weakness in breast health capital sales, the company reduced its full-year revenues guidance range to $4.05 billion - $4.10 billion, down from the previous range of $4.15 billion - $4.20 billion, which shattered investor confidence.
For the current fiscal 2025, ending in September, analysts expect HOLX to report a 4.9% year-over-year growth in earnings to $4.28 per share. However, the company has a mixed earnings surprise history. While it has surpassed the Street’s bottom-line estimates thrice over the past four quarters, it has missed the estimates on one other occasion.
Among the 18 analysts covering the HOLX stock, the consensus rating is a “Moderate Buy.” That’s based on six “Strong Buy,” one “Moderate Buy,” and 11 “Hold” ratings.
This configuration is slightly less bullish than a month ago when seven analysts gave “Strong Buy” recommendations and two suggested “Moderate Buy” ratings.
On Feb. 6, Raymond James analyst Andrew Cooper reiterated an “Outperform” rating, however, the analyst lowered the price target to $90.
HOLX’s mean price target of $84.25 represents a 32.6% premium to current price levels, while its street-high target of $95 suggests a staggering 49.5% upside potential.
