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Hologic In Good Health, Will The Rally Continue?

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Shares of Hologic Inc. (HOLX), which touched a 52-week high of $50.43 in intraday trading yesterday, are up 30 percent year-to-date.

The Company develops, manufactures and supplies premium diagnostics products, medical imaging systems, surgical products, and light-based aesthetic and medical treatment systems with an emphasis on women's health.

Operating in 5 segments - Diagnostics, Breast Health, Medical Aesthetics, GYN Surgical, and Skeletal Health - Hologic has delivered strong year-over-year growth in revenue and even stronger growth in non-GAAP EPS since 2014.

Some of the recently launched products of Hologic include the Aptima Mycoplasma genitalium assay and the Unifi Analytics business intelligence tool for mammography centers in the United States, the Omni hysteroscope in Europe and Canada, the LOCalizer wireless breast lesion localization system in Europe, and the Trident HD specimen radiography system in United States, Canada and Europe.

In the fiscal second quarter ended March 30, 2019, Hologic reported revenue of $818.4 million and non-GAAP EPS of $0.58.

The Company is scheduled to report financial results for the fiscal third quarter ended June 30, 2019, on July 31, 2019.

In May of this year, the Company forecast revenue for the third quarter of 2019 to be in the range of $825 million to $840 million and non-GAAP EPS to range between $0.60 and $0.62. The consensus third-quarter revenue forecast amongst 16 polled analysts covering Thomson Reuters is $835.75 million and the consensus EPS forecast amongst 18 polled analysts is $0.61 per share.

In a bid to strengthen its breast health product portfolio, Hologic made a binding offer last month to acquire France-based ultrasound equipment manufacturer SuperSonic Imagine for a maximum enterprise value of $85 million.

The last time Hologic opened its wallet was in September 2018 when it acquired Focal Therapeutics, a privately-held medical device company, for $125 million in cash. Another deal that the Company executed in 2018 was the acquisition of Faxitron Bioptics, a privately-held leader in digital specimen radiography, for approximately $85 million.

Earlier this month, the Company announced a partnership with MagView, a mammography information solutions provider, to develop Unifi EQUIP, an automated solution that will allow mammography facilities to more efficiently manage FDA inspection process. Unifi EQUIP is expected to be commercially available in October 2019.

As the new product launches and growth-accretive tuck-in deals continue to drive revenue, Hologic for sure merits attention if this stock hasn't caught your eyes yet.

HOLX has traded in a range of $37.47 to $50.43 in the last 1 year. The stock closed Monday's (July 29) trading at $50.38, up 1.80%.

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