Headquartered in Marlborough, Massachusetts, Hologic, Inc. (HOLX) is a global medical technology company dedicated to improving women's health and well-being. With a market cap of $18.2 billion, Hologic serves healthcare providers worldwide through its innovative diagnostic, surgical, and medical imaging solutions, leveraging cutting-edge technology to enhance patient care and outcomes.

Shares of this medical technology company have significantly underperformed the broader market over the past year. The stock has gained 8.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 30.1%. In 2024, HOLX stock is up 9.2%, while the SPX has returned 24.1% on a YTD basis.

Narrowing the focus, HOLX has underperformed the SPDR S&P Health Care Equipment ETF (XHE). The exchange-traded fund has gained about 21% over the past year. However, HOLX’s gains on a YTD basis outshine the ETF’s 6.4% returns over the same time frame.

Shares of Hologic declined 5.9% following the release of its Q3 earnings on Nov. 4. Its adjusted EPS of $1.01 missed the $1.02 consensus estimate despite a 13.5% year-over-year increase. Its revenue increased 4.5% year-over-year to $987.9 million but came below the forecast. 

However, for fiscal 2025, Hologic projects revenue between $4.15 billion and $4.20 billion, representing 3% to 4% year-over-year growth, and adjusted EPS is estimated to be between $4.25 and $4.35, reflecting 4.2% to 6.6% annual growth.

For the current fiscal year, ending in September 2025, analysts expect Hologic’s EPS to grow 4.7% to $4.27 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on one other occasion.  

Among the 15 analysts covering HOLX stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, two “Moderate Buys,” and seven “Holds.”

This configuration is less bullish than three months ago when seven analysts suggested a "Strong Buy." 

However, on Nov. 5, RBC Capital raised Hologic's price target to $89 from $86, citing achievable fiscal 2025 guidance, realistic margin targets, a focus on M&A and buybacks, and efforts to expand into international markets.

The mean price target of $89.93 represents a 15.2% premium to HOLX’s current price levels. The Street-high price target of $96 suggests an upside potential of 23%.