Everyone talks about torrid earnings growth as a key ingredient in a strong stock, but that is not entirely true. Sometimes all a stock needs to do very well is for the company to surpass lackluster results, and do so in a way that inspires confidence regarding sustainability. With that in mind, Hologic (Nasdaq: HOLX) may not have the most exciting growth profile, but the stock seems to be seriously underestimating the value of this well-run business.
An Okay Quarter
Although the company did manage to beat the consensus estimate for revenue, it probably will not make a huge difference in how investors view this stock. Hologic saw revenue rise about 6%, with 13% growth in breast health (driven by strong growth in services), a 3% decline in diagnostics, an 8% increase in GYN surgery and a 4% increase in skeletal health.
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