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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 $13.9 billion, Hologic operates through Diagnostics, Breast Health, GYN Surgical, and Skeletal Health segments.
Companies worth $10 billion or more are generally described as “large-cap stocks,” 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.
Despite its strengths, HOLX stock has tanked 28.2% from its 52-week high of $84.67 touched on Aug. 9, 2024. Meanwhile, HOLX stock has plunged 16.4% over the past three months, notably underperforming the Health Care Select Sector SPDR Fund’s (XLV) 4.3% gains during the same time frame.
Hologic’s performance looks even grimmer over the longer term. HOLX stock has plummeted 23.9% over the past six months and 19.6% over the past 52 weeks, notably underperforming XLV’s 4.8% dip over the past six months and a marginal 2 bps uptick over the past year.
To confirm the downturn, HOLX has remained consistently below its 50-day moving average since early November and below its 200-day moving average since early December last year.
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 bps 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.
Meanwhile, Hologic has performed slightly better than its peer Align Technology, Inc.’s (ALGN) 29.9% drop over the past six months and 46.8% decline over the past year.
Among the 19 analysts covering the HOLX stock, the consensus rating is a “Moderate Buy.” Its mean price target of $82.53 suggests a 35.7% upside potential from current price levels.
On the date of publication, Aditya Sarawgi 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. For more information please view the Barchart Disclosure Policy here.
