NEW YORK (Stockpickr) -- At Stockpickr, we track the top holdings of a variety of high-profile investors, such as Warren Buffett and George Soros.
Must Read: Warren Buffett's Top 10 Dividend Stocks
One of our most popular professional portfolios is that of Carl Icahn's Icahn Capital. Today, we're taking a closer look at Icahn's top 10 holdings as of the most recently reported quarter ended Sept. 30.
"We rate Hologic (HOLX) a buy. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Hologic reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, Hologic turned its bottom line around by earning $0.06 versus -$4.33 in the prior year. This year, the market expects an improvement in earnings ($1.53 versus $0.06).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 102.5% when compared to the same quarter one year prior, rising from -$1,113.90 million to $28.10 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 7.2%. Since the same quarter one year prior, revenues slightly increased by 6.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 68.85% to $131.70 million when compared to the same quarter last year. In addition, Hologic has also vastly surpassed the industry average cash flow growth rate of 1.22%.
- The gross profit margin for Hologic is rather high; currently it is at 65.11%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, HOLX's net profit margin of 4.25% significantly trails the industry average.