Trade-Ideas: Hologic (HOLX) Is Today's Post-Market Leader Stock

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 leader 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 $94.6 million.
  • HOLX is up 2.8% 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. Currently there are 7 analysts that rate Hologic a buy, 1 analyst rates it a sell, and 11 rate it a hold.

The average volume for Hologic has been 4.7 million shares per day over the past 30 days. Hologic has a market cap of $6.1 billion and is part of the health care sector and health services industry. The stock has a beta of 1.58 and a short float of 8.9% with 3.63 days to cover. Shares are up 12.1% year-to-date as of the close of trading on Thursday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hologic as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • HOLX's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 3.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for HOLOGIC INC is rather high; currently it is at 59.93%. Regardless of HOLX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HOLX's net profit margin of -179.04% significantly underperformed when compared to the industry average.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, HOLOGIC INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 1332.3% when compared to the same quarter one year ago, falling from -$77.77 million to -$1,113.90 million.

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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