Saturday, August 7, 2010

Still Time To Buy Hologic

Maybe one of the more interesting legacies of this recession will be the demise of the popular myth that healthcare is a safe sector because people need care in good times and bad. Across the board, whether it is a capital goods-intensive company like Intuitive Surgical (Nasdaq:ISRG) or Varian (NYSE:VAR) or a more consumables-oriented company like Carefusion (NYSE:CFN) or Becton Dickinson (NYSE:BDX), companies have suffered from lower levels of hospital spending and fewer people visiting doctors.

As a company that depends on both capital spending and routine patient visits, Hologic (Nasdaq:HOLX) has been in the middle of this riptide. True, the company has not seen nearly the sort of cyclical decline that you might expect from an industrial company, but there is enough economic uncertainty here to make investors rethink the idea that healthcare stocks are always safe. 

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