Hologic Inc Stock Upgraded (HOLX)
NEW YORK (
)
-- Hologic
(Nasdaq:
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 9.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- HOLOGIC INC 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 year. We feel that this trend should continue. During the past fiscal year, HOLOGIC INC turned its bottom line around by earning $0.59 versus -$0.25 in the prior year. This year, the market expects an improvement in earnings ($1.38 versus $0.59).
- 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 90.2% when compared to the same quarter one year prior, rising from $10.94 million to $20.81 million.
- The gross profit margin for HOLOGIC INC is rather high; currently it is at 65.90%. 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 4.40% significantly trails the industry average.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
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Hologic Inc. develops, manufactures, and supplies diagnostic, medical imaging systems, and surgical products for the healthcare needs of women. The company operates in four segments: Breast Health, Diagnostics, GYN Surgical, and Skeletal Health. The company has a P/E ratio of 32, below the average health services industry P/E ratio of 32.9 and above the S&P 500 P/E ratio of 17.7. Hologic has a market cap of $5.11 billion and is part of the
sector and
industry. Shares are up 20.5% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff
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