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Hologic, Inc. (HOLX), headquartered in Marlborough, Massachusetts, develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women's health through early detection and treatment. Valued at $19 billion by market cap, the company's core business units focus on diagnostics, breast health, GYN surgical, and skeletal health.
Shares of this medical technology company have underperformed the broader market considerably over the past year. HOLX has gained 11.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.3%. In 2024 alone, HOLX’s stock rose 13.9%, compared to SPX’s 17.6% rise on a YTD basis.
Narrowing the focus, HOLX has outperformed the SPDR S&P Health Care Equipment ETF (XHE). The exchange-traded fund has gained about 1.4% over the past year. Moreover, HOLX’s double-digit gains on a YTD basis outshine the ETF’s 3.4% returns over the same time frame.
HOLX's overall performance can be attributed to its strong execution in Diagnostics, Breast Health, and Surgical franchises. Increased gantry shipments drove breast health growth, while its Laparoscopy business in the surgical arm grew significantly over the years.
On Jul. 29, HOLX shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $1.06 exceeded Wall Street expectations of $1.02. The company’s revenue was $1.01 billion, topping Wall Street forecasts of $1 billion. HOLX updated its full-year guidance and expects its adjusted EPS to be between $4.04 and $4.11 and revenue to be between $4.01 billion and $4.03 billion.
For the current fiscal year, ending in September, analysts expect HOLX’s EPS to grow 3% to $4.08 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 15 analysts covering HOLX stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”
This configuration is more bullish than two months ago, with six analysts suggesting a “Strong Buy.”
On Aug. 16, RBC Capital analyst Conor McNamara maintained a “Hold” rating on HOLX with a price target of $82, implying a marginal upside potential from current levels.
The mean price target of $88.77 represents a 9.1% premium to HOLX’s current price levels. The Street-high price target of $96 suggests an upside potential of 18%.
On the date of publication, Neha Panjwani 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.
