Hologic Inc (HOLX): Today's Featured Health Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Hologic ( HOLX) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day up 0.1%. By the end of trading, Hologic rose 26 cents (1.3%) to $21.05 on average volume. Throughout the day, 2.3 million shares of Hologic exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $20.74-$21.13 after having opened the day at $20.80 as compared to the previous trading day's close of $20.79. Other companies within the Health Services industry that increased today were: Graymark Healthcare ( GRMH), up 33.9%, Hansen Medical ( HNSN), up 17.4%, Vanguard Health Systems ( VHS), up 7.5%, and Accuray ( ARAY), up 7.3%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

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. Hologic has a market cap of $5.49 billion and is part of the health care sector. The company has a P/E ratio of 172.9, equal to the average health services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 18.7% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate Hologic a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Hologic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, USMD Holdings ( USMD), down 26.4%, Edap TMS ( EDAP), down 6.3%, Enzo Biochem ( ENZ), down 6%, and Neostem ( NBS), down 5%, were all laggards within the health services industry with Life Technologies ( LIFE) being today's health services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health services industry could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health services industry could consider ProShares Ultra Short Health Care ( RXD).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Bring On the Bitcoin Futures Trading Insanity!

Bring On the Bitcoin Futures Trading Insanity!

Six Off the Beaten Path Healthcare Stock Gems

Six Off the Beaten Path Healthcare Stock Gems

These Stocks Have Changed Direction

These Stocks Have Changed Direction

How to Buy Great, Cheap Stocks When Indexes Are at All-Time Highs

How to Buy Great, Cheap Stocks When Indexes Are at All-Time Highs

These Stocks Are Ready to Reverse Course

These Stocks Are Ready to Reverse Course