Entering text into the input field will update the search result below

Hologic: A Superb Steward Of Capital, Offsets Top-Line Risks

Apr. 19, 2023 12:53 AM ETHologic, Inc. (HOLX)3 Comments
Zach Bristow profile picture
Zach Bristow


  • Hologic is a long-term cash compounder with an attractive value proposition.
  • Here I demonstrate the firm's strengths going forward.
  • Despite top-line pressures, findings show the firm's business economics are exceptional and can throw off large piles of cash to shareholders.
  • Net-net, I reiterate buy at $173, revealing tremendous upside potential.

Business on Wall Street in Manhattan

Pgiam/iStock via Getty Images

Investment Summary

After a polished 1st FY'22 quarter the bullish case for Hologic, Inc. (NASDAQ:NASDAQ:HOLX) has only strengthened in my opinion and I therefore reaffirm my buy rating on HOLX stock. I

This article was written by

Zach Bristow profile picture
Strategist, global markets, at Bernard Holdings. Objective view on the directional bias of markets. Technical expertise bridges the complex relationships between value drivers, capital flows and price action. Clients are represented over the cross-section of financial markets, from speculators, hedgers, long-term traders and the public. Research covers investment securities and futures markets.Shoot me a message to talk trade ideas or portfolio construction. Disclaimer:All research is strictly for informational purposes only. Not to be considered investment advice. Please remember to conduct your own due diligence.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of HOLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (3)

I'd like to get your take on HOLX's 2Q results.
A couple statements stood out to me: 1) "In the third quarter of fiscal 2023, we expect strong financial results with total revenue in the range of $930 million to $980 million, representing another quarter of double-digit growth when you exclude COVID. For the full year fiscal 2023, we are again increasing our guidance and expect total revenue in the range of $3.925 billion to $4.025 billion",
and 2) "And clearly, what we're putting up right now is great. Now it's going to be much tougher clearly when we start bumping up against 24% comparable levels, then growing that in that 5% to 7% on top of those numbers. cumulative is going to be a lot better off than frankly, when we gave the guidance."
Although the share price is down around 3.5% this morning, most analysts raised their price targets.

Do the 2Q results and projections materially impact your analysis?
Zach Bristow profile picture
@CNY Investor The language in the results is further support of my numbers. There's no major change, but the support is there for a $4Bn top line this year. Then all of the economic characteristics of the business, recycling capital, etc.

Thanks for the questions. Still very constructive on HOLX.
I've had a large position in HOLX for about the last two years. I recently sold May $85 calls and September $90 calls. I'd be more than happy to reach those targets, but I'll have to reevaluate my approach based on your bullish forecast.

I don't understand why there's such a big market for their Panther systems. From what little I've read they seem to be underutilized and far more capable than how most are currently used.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About HOLX

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on HOLX

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.