For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Hologic (HOLX) ten years ago? It may not have been easy to hold on to HOLX for all that time, but if you did, how much would your investment be worth today?
Hologic's Business In-Depth
With that in mind, let's take a look at Hologic's main business drivers.
Headquartered in Bedford, MA, Hologic Inc. develops, manufactures, and supplies diagnostics, medical imaging systems and surgical products which cater to the healthcare needs of women.
Hologic operates through the following four segments:
Diagnostics (63.6% of total revenues in FY21): With the Gen-Probe acquisition, Hologic currently offers APTIMA family of assays that includes the APTIMA Combo 2 assay, which feature the APTIMA CT and APTIMA GC assays, the APTIMA HPV assay and the APTIMA Trichomonas assay. Other products include the ThinPrep system, primarily used in cytology applications. In the fourth quarter of fiscal 2019, this segment registered 6.2% growth year-over year.
Breast Health (25.4% of total revenues in FY21): Products include a broad portfolio of breast imaging and related products and accessories, including digital and film-based mammography systems, computer-aided detection (CAD), breast biopsy guidance systems, minimally invasive breast biopsy and tissue extraction devices and breast brachytherapy products. In the fourth quarter of fiscal 2019, this segment registered 6.3% growth year-over year.
GYN Surgical (9.3% of total revenues in FY21): Products include the NovaSure endometrial ablation system – used in the treatment of heavy menstrual bleeding and the MyoSure hysteroscopic tissue removal system – which allows incision less removal of fibroids and polyps within the uterus. In the fourth quarter of fiscal 2019, this segment registered 6.6% growth year over year.
Skeletal Health (1.8% of total revenues in FY21): This segment includes dual-energy X-ray bone densitometry systems, an ultrasound-based osteoporosis assessment product, and Fluoroscan mini-C arm imaging products.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Hologic a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in April 2012 would be worth $3,684.24, or a 268.42% gain, as of April 14, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 224.51% and the price of gold increased 14.80% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for HOLX.
Hologic exited the first quarter of fiscal 2022 with better-than-expected results. Impressive performance by the Breast Imaging and Interventional Breast Solutions business drove the top line. The recently-completed buyout of Bolder Surgical along with the launch of the Panther Trax bodes well for the company. Further, the uptick in GYN Surgical business led by MyoSure is encouraging. The company has raised full-year 2022 guidance, which indicates the continuation of this bullish trend. Over the past six months, Hologic has outperformed its industry. However, the year-over-year decline in revenues driven by lower sales of COVID-19 assays compared to the prior-year period is discouraging. Escalating operating costs and contraction of both margins are worrying. A weak solvency position and capital structure is discouraging too.
Shares have gained 6.23% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.Just Released: Zacks Top 10 Stocks for 2022
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Hologic, Inc. (HOLX): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.