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Is Hologic Stock's Low Valuation an Opportunity or a Value Trap?
Is Hologic Stock's Low Valuation an Opportunity or a Value Trap?

Globe and Mail

time08-07-2025

  • Business
  • Globe and Mail

Is Hologic Stock's Low Valuation an Opportunity or a Value Trap?

At a glance, Hologic HOLX appears to be attractively priced, as reflected by its Value Score of B. The Marlborough, MA-based company, which specializes in women's health products, is currently trading at a forward five-year price-to-sales (P/S) of 3.39X, lower than its median of 4.33X and the industry average of 4.14X. HOLX Five-Year Forward P/S The valuation also compares favorably to peers QIAGEN QGEN and Abbott ABT, which have a P/S of 3.30X and 2.50X, respectively. Still, the stock trades at a premium to the broader Medical sector's historical five-year average of 2.33X. A tough macroeconomic environment, shifting policy landscape and soft end-market trends have created headwinds for the company since the beginning of fiscal 2025. Hologic shares are down 10.8% year to date, lagging behind the industry's 7.8% decline and the S&P 500 composite's 6.2% gain. In contrast, QIAGEN shares have risen 3.7%, while Abbott has outpaced all with its 18.1% gain in the same time frame. YTD Snapshot: HOLX vs. Industry & Peers What's Dragging Hologic's Performance? The company returned to top-line growth in the third quarter of fiscal 2024 after a prolonged period of COVID-19-related slowdown. However, fiscal 2025 has seen a mixed performance. First-quarter revenues rose just 0.9%, held back by an approximately $9 million headwind from a stronger U.S. dollar. The second quarter saw a 1.2% year-over-year decrease, mainly due to a 7.4% revenue drop in Breast Health revenues from lower sales of mammography capital equipment. Hologic's Molecular Diagnostics business also faced challenges from reduced HIV testing sales in Africa following the cease of USAID funding by the Trump administration. The $50 million annual revenue stream has now been conservatively removed from the company's fiscal 2025 outlook. In cytology and perinatal businesses, strong U.S. adoption of the Genius AI product was offset by a modest decline internationally due to a physician strike in South Korea and reduced hospital spending in China. Meanwhile, after delivering sequential adjusted earnings per share (EPS) growth in recent months, Hologic reported flat EPS in the second quarter. In the coming quarters, tariff-related pressures are expected to have a profound impact on Hologic's operations. The company reaffirmed its revenue guidance but lowered its adjusted EPS forecast to $4.15-$4.25 from the prior $4.25-$4.35 range. Management expects a $20-$25 million quarterly gross impact tied to its manufacturing activities in Costa Rica and China. To minimize exposure to future geopolitical risks, Hologic cut its full-year China revenue forecast by approximately $20 million, now expecting around $50 million. Hologic's Earnings Estimate Revisions Slide Analysts are turning increasingly cautious on Hologic's earnings outlook. Over the past 90 days, the Zacks Consensus Estimate for the company's fiscal 2025 EPS has decreased 2.1% to $4.19, while the consensus mark for fiscal 2026 has dipped 2.6% to $4.50. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Meanwhile, both QIAGEN and Abbott's 2025 and 2026 earnings estimates are displaying an upward trend. Hologic's Positives to Note The company's strategy of building durable growth drivers across each of its global businesses continues to pay off. Here are two key tailwinds that continue to stand out. Strength in GYN Surgical: Hologic's Surgical business has delivered a 7.6% compound annual growth rate (CAGR) over the last 10 years, led by its minimally invasive treatment of fibroids products — MyoSure and the related Fluent fluid management system. A key driver is the International business, which grew 16.2% in the fiscal second quarter, as Hologic advances market development and boosts awareness for its GYN offerings. NovaSure is seeing solid uptake overseas despite declining U.S. growth, while Accesa is growing faster than the core business. The January 2025 acquisition of Gynesonics enhanced the Surgical segment by bringing SOMATEX — a minimally invasive radiofrequency ablation tool to treat uterine fibroids that are less accessible by MyoSure or Accesa. In fiscal 2025, Hologic expects low-single-digit organic Surgical growth, supported by International momentum and the rising adoption of the new Fluent Pro Fluid Management System. Solid Financial Health: The company's fortress balance sheet and consistent cash flows give it ample strategic and financial flexibility. In the second quarter of fiscal 2025, Hologic generated $169.5 million in operating cash, driven by its market-leading brands. As of March-end, it had cash and equivalents of $1.43 billion, $192 million in short-term investments and an adjusted net leverage of just 0.8X. The company continues to look for tuck-in opportunities across its three core franchises, as seen with the recent deals like Endomagnetics and Gynesonics, as well as Biotheranostics (2021). Hologic also remains committed to returning value to shareholders, having repurchased more than $4.5 billion of stock since 2016, including $200 million in the second quarter. Endnote on HOLX Stock Hologic's ongoing momentum in its Surgical division and financial stability are noteworthy, but macroeconomic headwinds have continued to weigh on its performance. The decline in Breast Health sales, the loss of the HIV testing business in Africa and China's difficult operating landscape have impacted results. Despite an attractive valuation compared to peers and industry, the stock has underperformed both so far this year. The negative earnings estimate trend reinforces the outlook of continued near-term challenges. Considering all factors, Hologic doesn't offer a very compelling investment case right now. HOLX stock currently has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Abbott Laboratories (ABT): Free Stock Analysis Report Hologic, Inc. (HOLX): Free Stock Analysis Report QIAGEN N.V. (QGEN): Free Stock Analysis Report

QIAGEN N.V. to Release Results for Q2 2025 and Hold Webcast
QIAGEN N.V. to Release Results for Q2 2025 and Hold Webcast

Globe and Mail

time08-07-2025

  • Business
  • Globe and Mail

QIAGEN N.V. to Release Results for Q2 2025 and Hold Webcast

QIAGEN N.V. (NYSE: QGEN) (Frankfurt Stock Exchange: QIA) today announced plans to release results for the second quarter of 2025. Press release date / time: Tuesday, August 5, shortly after 22:05 Frankfurt time / 21:05 London time / 16:05 New York time. Conference call date / time: Wednesday, August 6, at 15:30 Frankfurt time / 14:30 London time / 09:30 New York time. Three options for joining the conference call Register for call back connection - Click here: Connect me Service is available 15 minutes before the call starts Dial-in by phone U.S.: +1 929 477 0402 UK: +44 (0)330 165 3655 GER: +49 (0)69 6610 2480 Conference ID: 1992038 To avoid waiting time, please join the event conference 5-10 minutes prior to the start time. Access the audio webcast - Click here: Access Webcast A conference call replay will be available by using the following link: Contact : IR@ About QIAGEN QIAGEN N.V., a Netherlands-based holding company, is the leading global provider of Sample to Insight solutions, enabling customers to extract and gain valuable molecular insights from samples containing the building blocks of life. Our sample technologies isolate and process DNA, RNA and proteins from blood, tissue and other materials. Assay technologies prepare these biomolecules for analysis while bioinformatics software and knowledge bases can be used to interpret data to find actionable insights. Automation solutions bring these processes together into seamless and costeffective workflows. QIAGEN serves over 500,000 customers globally in Life Sciences (academia, pharma R&D and industrial applications, primarily forensics) and Molecular Diagnostics for clinical healthcare. As of March 31, 2025, QIAGEN employed more than 5,600 people in over 35 locations worldwide. For more information, visit

QIAGEN N.V. to Release Results for Q2 2025 and Hold Webcast
QIAGEN N.V. to Release Results for Q2 2025 and Hold Webcast

Yahoo

time08-07-2025

  • Business
  • Yahoo

QIAGEN N.V. to Release Results for Q2 2025 and Hold Webcast

VENLO, Netherlands, July 08, 2025--(BUSINESS WIRE)--QIAGEN N.V. (NYSE: QGEN) (Frankfurt Stock Exchange: QIA) today announced plans to release results for the second quarter of 2025. Press release date / time: Tuesday, August 5, shortly after 22:05 Frankfurt time / 21:05 London time / 16:05 New York time. Conference call date / time: Wednesday, August 6, at 15:30 Frankfurt time / 14:30 London time / 09:30 New York time. Three options for joining the conference call Register for call back connection - Click here: Connect me Service is available 15 minutes before the call starts Dial-in by phoneU.S.: +1 929 477 0402UK: +44 (0)330 165 3655GER: +49 (0)69 6610 2480Conference ID: 1992038To avoid waiting time, please join the event conference 5-10 minutes prior to the start time. Access the audio webcast - Click here: Access Webcast A conference call replay will be available by using the following link: Contact: IR@ About QIAGEN QIAGEN N.V., a Netherlands-based holding company, is the leading global provider of Sample to Insight solutions, enabling customers to extract and gain valuable molecular insights from samples containing the building blocks of life. Our sample technologies isolate and process DNA, RNA and proteins from blood, tissue and other materials. Assay technologies prepare these biomolecules for analysis while bioinformatics software and knowledge bases can be used to interpret data to find actionable insights. Automation solutions bring these processes together into seamless and costeffective workflows. QIAGEN serves over 500,000 customers globally in Life Sciences (academia, pharma R&D and industrial applications, primarily forensics) and Molecular Diagnostics for clinical healthcare. As of March 31, 2025, QIAGEN employed more than 5,600 people in over 35 locations worldwide. For more information, visit category: Financial View source version on Contacts John GilardiVice President Head of Corporate Communications+49 2103 29 11711+49 152 018 11711+1 240 686 2222Email: ir@ Domenica MartoranaAssociate Director Investor Relations+49 2103 29 11244+49 152 018 11244Email: ir@

QIAGEN N.V. to Release Results for Q2 2025 and Hold Webcast
QIAGEN N.V. to Release Results for Q2 2025 and Hold Webcast

Business Wire

time08-07-2025

  • Business
  • Business Wire

QIAGEN N.V. to Release Results for Q2 2025 and Hold Webcast

VENLO, Netherlands--(BUSINESS WIRE)--QIAGEN N.V. (NYSE: QGEN) (Frankfurt Stock Exchange: QIA) today announced plans to release results for the second quarter of 2025. Press release date / time: Tuesday, August 5, shortly after 22:05 Frankfurt time / 21:05 London time / 16:05 New York time. Conference call date / time: Wednesday, August 6, at 15:30 Frankfurt time / 14:30 London time / 09:30 New York time. Three options for joining the conference call Register for call back connection - Click here: Connect me Service is available 15 minutes before the call starts Dial-in by phone U.S.: +1 929 477 0402 UK: +44 (0)330 165 3655 GER: +49 (0)69 6610 2480 Conference ID: 1992038 To avoid waiting time, please join the event conference 5-10 minutes prior to the start time. Access the audio webcast - Click here: Access Webcast A conference call replay will be available by using the following link: Contact: IR@ About QIAGEN QIAGEN N.V., a Netherlands-based holding company, is the leading global provider of Sample to Insight solutions, enabling customers to extract and gain valuable molecular insights from samples containing the building blocks of life. Our sample technologies isolate and process DNA, RNA and proteins from blood, tissue and other materials. Assay technologies prepare these biomolecules for analysis while bioinformatics software and knowledge bases can be used to interpret data to find actionable insights. Automation solutions bring these processes together into seamless and costeffective workflows. QIAGEN serves over 500,000 customers globally in Life Sciences (academia, pharma R&D and industrial applications, primarily forensics) and Molecular Diagnostics for clinical healthcare. As of March 31, 2025, QIAGEN employed more than 5,600 people in over 35 locations worldwide. For more information, visit category: Financial

QIAGEN Announces Election of Stephen Rusckowski as Chairman of Supervisory Board
QIAGEN Announces Election of Stephen Rusckowski as Chairman of Supervisory Board

Business Wire

time26-06-2025

  • Business
  • Business Wire

QIAGEN Announces Election of Stephen Rusckowski as Chairman of Supervisory Board

VENLO, Netherlands--(BUSINESS WIRE)--QIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) today announced that its Supervisory Board has elected Stephen H. Rusckowski as Chairman following the Annual General Meeting of Shareholders (AGM) on June 26, 2025. He succeeds Lawrence A. Rosen, who did not stand for re-election after serving for 12 years on the Supervisory Board. The Dutch Corporate Governance Code indicates that Directors of public companies should not serve more than 12 years for a company on their Supervisory Board. At the AGM, where 80.4% of QIAGEN's issued shares were represented, shareholders approved all proposed resolutions, including the initiation of an annual cash dividend and a new share repurchase authorization of up to $500 million. Mr. Rusckowski joined the Supervisory Board in 2023 and has served as Chairman of the Nomination & Governance Committee and as a member of the Human Resources & Compensation Committee. He brings deep global healthcare and leadership experience, having previously served as Chairman, President and CEO of Quest Diagnostics and as CEO of Philips Healthcare. Mr. Rusckowski said: 'QIAGEN has built an outstanding portfolio of solutions trusted for their quality and scientific excellence. What continues to impress me is the clear vision that drives this company: a commitment to making improvements in life possible. I take on this role with deep respect for QIAGEN, its culture and its people, and with a clear recognition of the Supervisory Board's responsibility to be a strong and engaged partner for shareholders and other stakeholders.' Mr. Rosen stepped down after serving as Chairman since 2020 and serving as a member of the Supervisory Board since 2013. Under his leadership, QIAGEN underwent a period of focused strategic transformation and strengthened governance. Five new members have joined the Supervisory Board since 2020, enhancing its already strong international profile and deep expertise. 'It has been an extraordinary privilege to serve QIAGEN through a period of meaningful transformation and growth, and I believe QIAGEN has never been in a stronger position,' Mr. Rosen said. 'I will very much enjoy watching the progress as the employees of QIAGEN do great things to help our customers advance science and improve healthcare for people around the world.' Additionally, Prof. Dr. Elaine Mardis stepped down from the Supervisory Board after deciding not to stand for re-election. Prof. Dr. Mardis brought important scientific expertise to the Board since 2014, especially through her service on the Science & Technology and Human Resources & Compensation Committees. Following the AGM, QIAGEN's Supervisory Board now consists of eight members, reflecting the implementation of a plan announced in 2024 to return to a size consistent with historical levels and continuing to represent all the necessary expertise to support the future development of QIAGEN in a highly effective manner. The AGM approved the re-appointment for one-year terms of the following Board members: Dr. Metin Colpan, Dr. Toralf Haag, Prof. Dr. Ross L. Levine, Mr. Bert van Meurs, Ms. Eva van Pelt, Dr. Eva Pisa, Ms. Elizabeth Tallett and Mr. Stephen H. Rusckowski. Shareholders also approved the initiation of QIAGEN's first-ever annual cash dividend - a milestone that reflects QIAGEN's strong financial position and disciplined capital allocation strategy, which includes dividends in addition to organic investments, value-creating acquisitions and share repurchases. The first dividend payment will be $0.25 per ordinary share, totaling approximately $54 million, with a record and ex-date of July 2, 2025, and payment date of July 10, 2025. In addition, the AGM approved a new synthetic share repurchase authorization of up to $500 million, reinforcing QIAGEN's commitment to returning capital to shareholders while preserving financial flexibility to invest in innovation and long-term growth. About QIAGEN QIAGEN N.V., a Netherlands-based holding company, is the leading global provider of Sample to Insight solutions, enabling customers to extract and gain valuable molecular insights from samples containing the building blocks of life. Our sample technologies isolate and process DNA, RNA and proteins from blood, tissue and other materials. Assay technologies prepare these biomolecules for analysis while bioinformatics software and knowledge bases can be used to interpret data to find actionable insights. Automation solutions bring these processes together into seamless and cost-effective workflows. QIAGEN serves over 500,000 customers globally in Life Sciences (academia, pharma R&D and industrial applications, primarily forensics) and Molecular Diagnostics for clinical healthcare. As of March 31, 2025, QIAGEN employed more than 5,600 people in over 35 locations worldwide. For more information, visit Forward-Looking Statement Certain statements in this press release may constitute forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These statements, including those regarding QIAGEN's products, development timelines, marketing and / or regulatory approvals, financial and operational outlook, growth strategies, collaborations and operating results - such as expected adjusted net sales and adjusted diluted earnings - are based on current expectations and assumptions. However, they involve uncertainties and risks. These risks include, but are not limited to, challenges in managing growth and international operations (including the effects of currency fluctuations, regulatory processes and logistical dependencies), variability in operating results, commercial development for our products to customers in the Life Sciences and clinical healthcare, changes in relationships with customers, suppliers or strategic partners; competition and rapid technological advancements; fluctuating demand for QIAGEN's products due to factors such as economic conditions, customer budgets and funding cycles; obtaining and maintaining regulatory approvals for our products; difficulties in successfully adapting QIAGEN's products into integrated solutions and producing these products; and protecting product differentiation from competitors. Additional uncertainties may arise from market acceptance of new products, integration of acquisitions, governmental actions, global or regional economic developments, natural disasters, political or public health crises, and other "force majeure" events. There is also no guarantee that anticipated benefits from restructuring programs and acquisitions will materialize as expected. For a comprehensive overview of risks, please refer to the 'Risk Factors' contained in our most recent Annual Report on Form 20-F and other reports filed with or furnished to the U.S. Securities and Exchange Commission. Source: QIAGEN N.V.

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