Stock of the Day

May 10, 2021

Hologic (HOLX)

$64.47
+$0.15 (+0.2%)
Market Cap: $14.43B

About Hologic

Hologic, Inc. develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women's health through early detection and treatment. The company operates through four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health. It provides Aptima molecular diagnostic assays to detect the infectious microorganisms; Aptima viral load assays for Hepatitis B virus, Hepatitis C virus, human immunodeficiency virus, and human cytomegalo virus; Aptima bacterial vaginosis and candida vaginitis assays for the diagnosis of vaginitis; Aptima SARS-CoV-2 and Panther Fusion SARS-CoV-2 assays to detect SARS-CoV-2; ThinPrep System for cytology applications; and Rapid Fetal Fibronectin Test that assists physicians in assessing the risk of pre-term birth. The company also offers breast cancer care solutions in the areas of radiology, breast surgery, pathology, and treatment, such as 3D digital mammography systems, image analytics software, reading workstations, minimally invasive breast biopsy guidance systems, breast biopsy site markers, localization, specimen radiology, and connectivity solutions; and breast conserving surgery products. In addition, it provides MyoSure Hysteroscopic Tissue Removal System for the removal of fibroids and polyps in the uterus; NovaSure Endometrial Ablation System to treat abnormal uterine bleeding; Fluent Fluid Management System that provides liquid distention during diagnostic and operative hysteroscopic procedures; Acessa ProVu system to treat various fibroids; and CoolSeal portfolio, such as bipolar vessel sealing devices. Further, the company offers Horizon DXA, a dual energy X-ray system; and Fluoroscan Insight FD mini C-arm to perform minimally invasive orthopedic surgical procedures. It sells its products through direct sales, service forces, independent distributors, and sales representatives. Hologic, Inc. was incorporated in 1985 and is headquartered in Marlborough, Massachusetts.

Hologic Bull Case

Here are some ways that investors could benefit from investing in Hologic, Inc.:

  • Hologic, Inc. reported earnings per share (EPS) of $1.03 for the latest quarter, exceeding analysts' expectations of $1.02, indicating strong financial performance and effective management.
  • The company has a solid return on equity of 19.72%, which suggests that it is efficient in generating profits from its equity investments, a positive sign for potential investors.
  • With a current stock price around $76.34, Hologic, Inc. is trading within a range that reflects its recent performance and market conditions, making it an attractive option for investors looking for growth.
  • Hologic, Inc. has a net margin of 18.42%, which indicates that it retains a significant portion of revenue as profit, showcasing its operational efficiency.
  • The company has a strong institutional ownership of 94.73%, suggesting confidence from large investors, which can be a positive indicator for retail investors.

Hologic Bear Case

Investors should be bearish about investing in Hologic, Inc. for these reasons:

  • The stock has experienced a 12-month high of $84.67 and a low of $63.62, indicating volatility that may concern risk-averse investors.
  • Recent insider selling, including a significant transaction by the COO who sold 24,856 shares, may raise red flags about the company's future prospects and insider confidence.
  • Hologic, Inc. has a price-to-earnings (P/E) ratio of 20.49, which could suggest that the stock is overvalued compared to its earnings, potentially limiting future price appreciation.
  • The company has a debt-to-equity ratio of 0.52, which, while manageable, indicates that it does carry some debt, potentially impacting financial flexibility.
  • Recent trading volumes have been lower than average, which may indicate reduced investor interest or liquidity concerns in the stock.

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