Medical technology companies are hot and not even climbing price-to-earnings multiples will slow down the likes of Hologic (HOLX) - Get Hologic, Inc. Report , Zimmer Biomet (ZBH) - Get Zimmer Biomet Holdings, Inc. Report , Zeltiq (ZLTQ) and NuVasive (NUVA) - Get NuVasive, Inc. Report , said Rich Newitter, managing director at Leerink. 'We think the sector can sustain its multiple premium given solid cash flow generation potential, strong balance sheets and cash flexibility, said Newitter. "It will continue to be a destination for fund rotation.' Shares of Hologic are barely positive year-to-date, but surged last week after the diagnostics specialist reported earnings and revenue that beat analysts' estimates for the 2016 fiscal third quarter. The Marlborough, MA-based medical device company reported earnings of $0.51 a share, higher than analysts' expectations of $0.48 a share. Revenue increased 3.4 percent to $717.4 million year-over-year and was above analysts' projections of $704.3 million. 'The underappreciated aspect of Hologic, and this came out in the quarter, is that the company has more growth drivers across all its other business and there are the beginnings of an international turnaround starting to take form and that has legs into the future,' said Newitter.