Play the bounce with Hologic, Inc. (HOLX)

Hologic, Inc (HOLX) has had a rough year so far. Shares are down -38% YTD. It’s the classic case of surging revenue and declining profit – in the short term.

With a company growing as rapidly as Hologic is, you have to expect major corrections from time to time. During the past five years, Hologic has bounced back from a 25% drop multiple times and come back swinging like Rocky Balboa.

HOLX 1 year chart:

Hologic is a company that specializes in the healthcare needs of women. Its mammography and breast care products include a portfolio of breast imaging and related products, including digital and film-based mammography systems, computer-aided detection, breast biopsy guidance systems, minimally invasive breast biopsy and tissue extraction devices and its MammoPad breast cushion.

Yes, I said it, MammoPad breast cushion! Is that not the coolest name you’ve ever heard for a medical product?

If I ever develop man-boobs, I’m definitely picking up one of those babies.

Anyway, back to Hologic. The company is fired up. Revenue is growing 138% yoy, Earnings growth 158% yoy. In addition, they just completed a big merger with Cytec, which is still early in the integration phase. Once they get the companies aligned and hitting on all cylinders, we should see some great results from HOLX.

Disclaimer: The author currently holds no positions in HOLX

Article written by Eric Cheshier

Co-Founder of theStockMasters.com

If you liked this article, Eric Cheshier also contributes to the Master Picks Newsletter and the Quant Method , only available at WallstNewsletters.com.