Key Points:
- The company is ranked third in the Zacks Rank by virtue of the magnitude of the most recent change in the consensus estimate.
- Hologic is expected to show a profit of $0.62 per share for the current quarter, which represents a decrease of -61.5% from the same period last year.
- A company’s earnings growth may be the strongest sign of its financial health, but without increasing revenues, not much happens.
The most recently searched stocks on Zacks.com included Hologic (HOLX), In order to know if it is worth it to bet on Hologic, Inc. (HOLX) l, you might want to consider some of the important factors that may influence the performance of the stock in the near future.
In comparison to the -3.1% change in the Zacks S&P 500 composite during the past month, shares of this producer of medical equipment have returned -4.4%. Hologic is a member of the Zacks Medical – Instruments industry, which has experienced a loss of 5.2% over this time. Where might the stock be heading in the near future is now the key question.
There are always certain fundamental factors that ultimately influence the buy-and-hold choice, even while media reports or rumors about a significant change in a company’s business prospects generally cause its stock to trend and lead to an immediate price change.
Even if media reports or rumors about a significant change in a company’s business prospects often cause its stock to trend and result in an immediate price change, there are always some underlying variables that ultimately influence the buy-and-hold decisions.
At Zacks, we place evaluating the change in a company’s earnings projection priority over everything else. This is because, in our opinion, the fair value of its stock is decided by the value of its future expected earnings stream.
We essentially analyze the way in which sell-side analysts who cover the stock are updating their profit estimates to account for the effects of the most recent industry movements. Additionally, if a company’s profits forecasts are improved, its stock’s fair value will rise. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Hologic is expected to show a profit of $0.62 per share for the current quarter, which represents a decrease of -61.5% from the same period last year. Over the previous 30 days, the Zacks Consensus Estimate stayed constant.
The consensus earnings estimate of $5.82 for the current fiscal year indicates a drop of -30.8% from the previous year. This estimate has not changed over the past 30 days.
The average earnings estimate of $3.49 for the new fiscal year represents a change of -40% from what Hologic is expected to report a year ago. The estimate hasn’t changed in the past month.
Our proprietary stock rating tool, the Zacks Rank, which has a solid externally verified track record, provides a more definitive view of a firm’s price direction in the near term since it effectively harnesses the power of earnings estimate revisions. Hologic is ranked third in the Zacks Rank by virtue of the magnitude of the most recent change in the consensus estimate as well as three other earnings estimate-related metrics (Hold).
Even while a company’s earnings growth may be the strongest sign of its financial health, if it can’t boost its revenues, not much happens. A business can hardly increase its earnings without consistently increasing its revenue. Therefore, it is essential to understand a company’s potential for revenue growth.
Hologic’s consensus sales estimate of $866.83 million for the current quarter represents a -34.2% year-over-year change. The current and next fiscal years’ estimates of $4.78 billion and $3.79 billion display changes of -15.2% and -20.7%, respectively.
Hologic reported $1 billion in revenue in the most recent quarter, representing a -14.2% year-over-year change. The same-period EPS of $0.95 compares to $1.33 a year ago.
The reported revenues are +11.88% higher than the Zacks Consensus Estimate of $896.2 million. The per-share earnings surprise was +37.68%.
In each of the previous four quarters, the company surpassed consensus EPS estimates. During this time, the company consistently outperformed consensus revenue estimates.
No investment decision can be effective unless the valuation of a stock is presumed. It is critical to determine whether a stock’s current price accurately reflects the intrinsic value of the underlying business and the company’s growth prospects when predicting its future price performance.
While comparing the current values of a company’s valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values can help determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters can offer a good sense of the stock’s price’s reasonability.
The Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B, B is better than C, and so on), making it useful in assessing whether a stock is overvalued, rightly valued, or temporarily undervalued as part of the Zacks Style Scores system.
Hologic obtains an A on this criterion, indicating that it wants to trade at a discount to its peers.
The information presented here, as well as much more on Zacks.com, may aid in identifying whether it is worthwhile to pay attention to the market buzz surrounding Hologic. However, its Zacks Rank #3 implies that it may outperform the market in the short term.
Among the thousands of stocks, five Zacks analysts have chosen their favorite to rise by 100% or more in the coming months. Sheraz Mian, Director of Research, needs to select one of those five to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% year over year while remaining dirt cheap. With unrelenting demand, soaring earnings estimates for 2022, and $1.5 billion obtainable for repurchasing shares, retail investors could jump in at any time.
This company may contend with or even exceed other recent Zacks’ Stocks Set to Double, such as Boston Beer Company (+143.0% in less than 9 months) and NVIDIA (+175.9% in a year), which all continued to rise.
