Marlborough, Massachusetts-based Hologic, Inc. (HOLX) develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women's health through early detection and treatment. Valued at a market cap of $12.3 billion, the company is known for its expertise in breast health, diagnostics, and gynecologic surgical solutions.

This women's healthtech company has considerably lagged behind the broader market over the past 52 weeks. Shares of HOLX have declined 26.8% over this time frame, while the broader S&P 500 Index ($SPX) has surged 12.3%. Moreover, on a YTD basis, the stock is down 23.2%, compared to SPX’s slight uptick. 

Narrowing the focus, HOLX has also underperformed the SPDR S&P Health Care Equipment ETF’s (XHE) 5.1% downtick over the past 52 weeks and 7.6% fall on a YTD basis. 

On May 1, HOLX delivered its Q2 results. While the company delivered slightly better-than-expected adjusted earnings of $1.03 per share and revenue of $1 billion, its stock dropped 5.5% in the following trading session. The decline was largely driven by a reduction in the company’s fiscal 2025 adjusted EPS guidance, which reflected the impact of tariffs and geopolitical uncertainties. Hologic now expects adjusted EPS to be between $4.15 and $4.25, and revenue in the range of $4.05 billion to $4.1 billion. Additionally, its Q2 revenue declined 1.2% year-over-year, mainly due to a drop in breast health revenue caused by lower sales of mammography capital equipment. Meanwhile, its adjusted net income also fell 4.6% year-over-year to $232.9 million. 

For the current fiscal year, ending in September, analysts expect Hologic’s EPS to grow 3.2% year over year to $4.21. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion. 

Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on five “Strong Buy,” one “Moderate Buy,” and 13 “Hold” ratings. 

This configuration is slightly less bullish than three months ago, with six analysts suggesting a “Strong Buy” rating. 

On May 13, Stephens maintained an “Overweight” rating on HOLX but lowered its price target to $70, which indicates a 26.4% potential upside from the current levels. 

The mean price target of $70.20 represents a 26.8% premium from Hologic’s current price levels, while the Street-high price target of $95 suggests an ambitious upside potential of 71.6%.