Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Hologic

(

HOLX

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Hologic as such a stock due to the following factors:

  • HOLX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.8 million.
  • HOLX is down 2% today from today's close.

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More details on HOLX:

Hologic, Inc. develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women in the United States and internationally. The company operates in four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health. HOLX has a PE ratio of 493.7. Currently there are 7 analysts that rate Hologic a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for Hologic has been 1.6 million shares per day over the past 30 days. Hologic has a market cap of $8.3 billion and is part of the health care sector and health services industry. The stock has a beta of 1.88 and a short float of 5.3% with 4.06 days to cover. Shares are up 10.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hologic as a

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, 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 ratings report include:

  • HOLX's revenue growth has slightly outpaced the industry average of 4.6%. 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.
  • 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 two years. We feel that this trend should continue. During the past fiscal year, HOLOGIC INC 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.
  • 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 INC has also vastly surpassed the industry average cash flow growth rate of -18.13%.
  • The gross profit margin for HOLOGIC INC 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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