Hologic (NASDAQ:HOLX) Stock, Quote.Headers.trade-ideas

Hologic

Hologic manufactures proprietary products for the healthcare needs of women. The company operates in five segments: diagnostics (60% of total sales, boosted by pandemic), breast health (14% of sales, suppressed by pandemic), surgical (11%), and skeletal health (1%). While the company traditionally focused on breast health, the acquisition of Gen-Probe put greater emphasis on commercial diagnostics. The United States accounts for the largest portion of the firm's revenue (69%), followed by Europe (20%), Asia (8%), and other international markets (3%). Hologic is headquartered in Bedford, Massachusetts.

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HOLX

The Cooper Companies, Inc. (NASDAQ: COO) is well-poised for growth, backed by strong prospects in its CooperVision and CooperSurgical business segments. Acquisitions boost the company&#39;s portfolio and buoy optimism.

Reasons to Add The Cooper Companies to Your Portfolio Now

Analyst Color

Health Care

Initiation

Women&#39;s Health-Focused Hologic Has Significant Capacity For Expansion Via M&amp;A, Bullish Analyst Says

xr:d:DAFzgn8dVBs:2,j:9120197723021318877,t:23110718

ACAD

GRAB

VRTX

This Vertex Pharmaceuticals Analyst Begins Coverage On A Bullish Note; Here Are Top 5 Initiations For Thursday

Hologic Inc

Hologic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>) has outperformed the market over the past 10 years by 1.0% on an annualized basis producing an average annual return of 11.71%. Currently, Hologic has a market capitalization of $17.55 billion. 
Buying $1000 In HOLX: If an investor had bought $1000 of HOLX stock 10 years ago, it would be worth $3,078.34 today based on a price of $75.19 for HOLX at the time of writing.
<h3>Hologic's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721930413_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In Hologic 10 Years Ago Would Be Worth This Much Today

The Cooper Companies, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/coo#NASDAQ">COO</a>) is well-poised for growth, backed by strong prospects in its CooperVision and CooperSurgical business segments. Acquisitions boost the company&#39;s portfolio and buoy optimism. However, unfavorable currency movements and rising costs continue to hurt revenues and margins, respectively.
Shares of this Zacks Rank #2 (Buy) company have lost 4.1% year to date against the industry&#39;s 0.4% growth. The S&amp;P 500 Index has gained 17.1% in the said time frame.
The Cooper Companies, with a market capitalization of $18.21 billion, is a global specialty medical device company.
The company&#39;s bottom line is estimated to improve 11.3% over the next five years. Its earnings beat estimates in two of the trailing four quarters and met the mark in the other two, delivering an average surprise of 2.50%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/72/72278.jpg?v=823218699" />
Image Source: Zacks Investment Research
<h3>What&#39;s Driving COO&#39;s Performance?</h3>
The Cooper Companies has been leading the specialty lenses market, owing to innovative product portfolios, market-leading flexibility and strength in key accounts. Its flagship silicone hydrogel lenses, including MyDay and clarity, are expected to drive strong sales in the upcoming quarters. Moreover, its silicone hydrogel FRP lenses, Biofinity and Avaira, should boost top-line growth.
In the second quarter, the company continued to witness substantial growth across CVI&#39;s Toric, Multifocal and single-use sphere subunits. It also experienced an organic improvement in sales on a geographical basis, with EMEA, the Americas and the Asia-Pacific markets exhibiting strength. Moreover, the robust performance of COO&#39;s myopia management portfolio, primarily driven by strong demand for MiSight, is also encouraging.
The CVI segment displayed solid performance in the same period, with its revenues rising 10% at a constant exchange rate to $635.9 million. Per management, strong demand for silicone hydrogel lenses contributed to the segmental uptick.
CVI revenues are likely to be in the $2.591-$2.613 billion range (organic growth of 8.5-9.5%) in fiscal 2024.
The Cooper Companies is also well-positioned to benefit from the expanding CSI product portfolio. In the fiscal second quarter, CSI witnessed constant-currency revenue growth in two focus areas, which were fertility and office, and surgical products.
Revenues from fertility increased 2% year over year to $123.8 million, indicating sustained solid performance. Sales of office and surgical products improved 12% to $182.9 million.
For fiscal 2024, CSI revenues are expected to be in the $1.272-$1.293 billion range, implying organic growth of 5-7%.
<h3>What&#39;s Weighing on the Stock?</h3>
The Cooper Companies generates a significant portion of its revenues in foreign currencies. Fluctuations in foreign exchange rates may significantly affect its overseas revenues.
Moreover, an increase in the cost of sales and selling, general and administrative expenses is concerning. The contraction in the operating margin during the first quarter is disappointing.
<h3>Estimate Trend</h3>
The Zacks Consensus Estimate for the company&#39;s fiscal 2024 revenues is pegged at $3.88 billion, implying growth of 8% from the year-ago reported figure. The consensus mark for adjusted earnings per share is pinned at $3.57, indicating an improvement of 11.6% from the previous year&#39;s recorded level.
In the past 60 days, COO&#39;s earnings estimate for fiscal 2024 has improved 2% to $3.57 per share.
<div class="chart_embed">
<h3>The Cooper Companies, Inc. Price</h3>
<img alt="The Cooper Companies, Inc. Price" src="https://staticx-tuner.zacks.com/images/charts/88/1721806604.png" style="height:251px; width:536px" title="" />
The Cooper Companies, Inc. price | The Cooper Companies, Inc. Quote
</div>
<h3>Other Key Picks</h3>
Some other top-ranked stocks in the broader medical space are Becton, Dickinson and Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bdx#NYSE">BDX</a>), Boston Scientific (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bsx#NYSE">BSX</a>) and Hologic (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/holx#NASDAQ">HOLX</a>), each carrying a Zacks Rank of 2.
Becton, Dickinson and Company has an estimated long-term growth rate of 8.8%. Its earnings surpassed estimates in three of the trailing four quarters and met the same in one, delivering an average surprise of 5.41%.
Becton, Dickinson and Company&#39;s shares have declined 3.9% against the industry&#39;s 0.4% growth year to date.
Boston Scientific has an estimated earnings growth rate of 12.5% in 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.49%.
BSX&#39;s shares have risen 36% year to date compared with the industry&#39;s 4.2% growth.
Hologic has an estimated long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.94%.
Hologic&#39;s shares have risen 9.3% year to date compared with the industry&#39;s 6.2% growth.
<a href="https://www.zacks.com/stock/news/2307653/reasons-to-add-the-cooper-companies-coo-to-your-portfolio-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2307653">To read this article on Zacks.com click here.</a>

Hologic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>) has outperformed the market over the past 20 years by 6.31% on an annualized basis producing an average annual return of 14.81%. Currently, Hologic has a market capitalization of $18.13 billion. 
Buying $100 In HOLX: If an investor had bought $100 of HOLX stock 20 years ago, it would be worth $1,541.14 today based on a price of $77.69 for HOLX at the time of writing.
<h3>Hologic's Performance Over Last 20 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721064669_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $100 Invested In Hologic 20 Years Ago Would Be Worth Today

Evercore ISI Group analyst Vijay Kumar maintains Hologic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>) with a In-Line and lowers the price target from $78 to $76.

Price Target

Evercore ISI Group Maintains In-Line on Hologic, Lowers Price Target to $76

Hologic's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NYSE">HOLX</a>) short percent of float has fallen 8.59% since its last report. The company recently reported that it has 4.64 million shares sold short, which is 2.98% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.77 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Hologic Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1719859514_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Hologic has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Hologic's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Hologic's peer group average for short interest as a percentage of float is 5.19%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into Hologic's Recent Short Interest

Stephens initiated coverage on Hologic Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>), citing it as a major player in women&#8217;s health, known for its consistent revenue growth, strong free cash flow, and attractive profit margins, is well-positioned in the molecular diagnostics <a target="_blank" href="https://www.benzinga.com/quote/holx" rel="noreferrer noopener">sector post-COVID</a>.
Stephens analyst writes, &#8220;Hologic is a leader in women&#8217;s health with a portfolio of products that have become the gold standard for care. Hologic emerged from the pandemic with new growth drivers, a scaled installed base, and a stronger balance sheet.&#8221;
The analyst says Hologic is well-positioned to execute on near-term targets and fuel long-term growth. A change to cervical cancer screening guidelines can potentially cause near-term share volatility.
However, the impact from the change will be manageable, won&#8217;t impact near-term numbers, and will ultimately be immaterial to Hologic&#8217;s long-term growth profile.
Stephens initiates with an Overweight rating and a <a target="_blank" href="https://www.benzinga.com/quote/holx/analyst-ratings" rel="noreferrer noopener">price target of $87</a>.
In the near term, 5%- 7% growth seems achievable. However, longer-term growth will be dependent on M&amp;A. With its leverage ratio at a 10-year low, the Stephens analyst expects Hologic to deploy capital and thinks M&amp;A represents a key opportunity to bolster both near-term and long-term growth and drive multiple expansions.
Stephens writes that mergers and acquisitions are crucial for Hologic&#8217;s long-term growth, and this strategy is expected to drive its stock performance over the next year.
Management has prioritized M&amp;A for capital allocation. While the company will likely continue with smaller tuck-in deals, it is also prepared to pursue larger acquisitions (over $1 billion) if the right opportunity arises. This focus on M&amp;A presents a significant opportunity for multiple expansion.
Price Action: HOLX shares are up 2.05% at $73.76 at the last check on Thursday.

Women's Health-Focused Hologic Has Significant Capacity For Expansion Via M&A, Bullish Analyst Says

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our <a href="https://www.benzinga.com/analyst-ratings/">analyst ratings page</a>.
<ul>
<li>BMO Capital analyst Keith Tapper initiated coverage on ACADIA Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACAD#NASDAQ">ACAD</a>) with an Outperform rating and announced a price target of $31. ACADIA Pharmaceuticals shares fell 0.6% to close at $15.50 on Wednesday. <a href="https://www.benzinga.com/quote/ACAD/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Mizuho analyst Wei Fang initiated coverage on Grab Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GRAB#NASDAQ">GRAB</a>) with an Outperform rating and announced a price target of $5. Grab shares fell 0.3% to close at $3.51 on Wednesday. <a href="https://www.benzinga.com/quote/GRAB/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Redburn Atlantic analyst Steve Chesney initiated coverage on Vertex Pharmaceuticals Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRTX#NASDAQ">VRTX</a>) with a Buy rating and announced a price target of $545. Vertex Pharmaceuticals shares rose 0.1% to settle at $474.00 on Wednesday. See how other analysts view this stock. <a href="https://www.benzinga.com/quote/VRTX/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Stephens &amp; Co. analyst Mason Carrico initiated coverage on Hologic, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>) with an Overweight rating and announced a price target of $87. Hologic shares gained 0.9% to close at $72.27 on Wednesday. <a href="https://www.benzinga.com/quote/HOLX/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Oppenheimer analyst Ian Zaffino initiated coverage on Kyndryl Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KD#NYSE">KD</a>) with an Outperform rating and announced a price target of $33. Kyndryl shares fell 1% to settle at $25.28 on Wednesday. <a href="https://www.benzinga.com/quote/KD/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
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Throughout the last three months, 7 analysts have evaluated Hologic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>), offering a diverse set of opinions from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Hologic, revealing an average target of $89.43, a high estimate of $95.00, and a low estimate of $78.00. This upward trend is apparent, with the current average reflecting a 6.46% increase from the previous average price target of $84.00.
<img src="https://www.benzinga.com/files/images/story/2024/1719489622_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
A comprehensive examination of how financial experts perceive Hologic is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Mason Carrico</td>
<td>Stephens &amp; Co.</td>
<td>Announces</td>
<td>Overweight</td>
<td>$87.00</td>
<td>-</td>
</tr>
<tr>
<td>David Toung</td>
<td>Argus Research</td>
<td>Raises</td>
<td>Buy</td>
<td>$95.00</td>
<td>$89.00</td>
</tr>
<tr>
<td>Mike Matson</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$90.00</td>
<td>$90.00</td>
</tr>
<tr>
<td>Casey Woodring</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$91.00</td>
<td>$85.00</td>
</tr>
<tr>
<td>Mike Matson</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$90.00</td>
<td>-</td>
</tr>
<tr>
<td>Vijay Kumar</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>In-Line</td>
<td>$78.00</td>
<td>$76.00</td>
</tr>
<tr>
<td>Patrick Donnelly</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$95.00</td>
<td>$80.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Hologic. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Hologic compared to the broader market.</li>
<li>Price Targets: Understanding forecasts, analysts offer estimates for Hologic's future value. Examining the current and prior targets provides insight into analysts' changing expectations.</li>
</ul>
To gain a panoramic view of Hologic's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/HOLX/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Hologic analyst ratings.</a>
<h2>Unveiling the Story Behind Hologic</h2>
Hologic manufactures proprietary products for the healthcare needs of women. The company operates in five segments: diagnostics (60% of total sales, boosted by pandemic), breast health (14% of sales, suppressed by pandemic), surgical (11%), and skeletal health (1%). While the company traditionally focused on breast health, the acquisition of Gen-Probe put greater emphasis on commercial diagnostics. The United States accounts for the largest portion of the firm's revenue (69%), followed by Europe (20%), Asia (8%), and other international markets (3%). Hologic is headquartered in Bedford, Massachusetts.
<h3>Unraveling the Financial Story of Hologic</h3>
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Hologic's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -0.85%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 16.69%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Hologic's ROE stands out, surpassing industry averages. With an impressive ROE of 3.58%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Hologic's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.98%, the company showcases efficient use of assets and strong financial health.
Debt Management: Hologic's debt-to-equity ratio is below the industry average at 0.53, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Scoreboard: 7 Ratings For Hologic

Stephens &amp; Co. analyst Mason Carrico initiates coverage on Hologic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>) with a Overweight rating and announces Price Target of $87.

Stephens & Co. Initiates Coverage On Hologic with Overweight Rating, Announces Price Target of $87

West Pharmaceutical Services, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wst#NYSE">WST</a>) is well poised for growth, backed by the robust Proprietary Products segment and sustained strength in research and development (R&amp;D). However, foreign exchange volatility is a concern.
Shares of this Zacks Rank #3 (Hold) company have lost 6.6% year to date against the industry&#39;s 2% growth. The S&amp;P 500 Index has increased 15.2% in the same time frame.
West Pharmaceutical, with a market capitalization of $23.46 billion, is a leading global manufacturer, engaged in the design and production of technologically advanced, high-quality, integrated containment and delivery systems for injectable drugs and healthcare products. Its earnings are anticipated to improve 7.3% over the next five years. The company delivered a trailing four-quarter average earnings surprise of 12.02%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/40/69302.jpg?v=1307525686" /> 
Image Source: Zacks Investment Research
Let&#39;s delve deeper.
<h3>Key Catalysts</h3>
Although sales of the Proprietary Products business declined in the first quarter of 2024, the segment continues to exhibit strength and is an important contributor to WST&#39;s top line. Proprietary Products&#39; customers primarily comprise several major biologic, generic and pharmaceutical drug companies globally that incorporate its components and other offerings in their injectable products.
Sales were negatively impacted during the first quarter by lower high-value product (HVP) sales and weak Generic product sales. However, the unfavorable factors are unlikely to continue in upcoming quarters as the company maintains its market share. Moreover, HVP sales are also expected to improve going forward with no slowdown in view.
Approval for new biologics should bring in additional revenues, further boosting the Biologics market unit&#39;s top-line growth. Sales declined 3% organically in the first quarter of 2024. High-value products (components and devices) accounted for more than 70% of segmental sales and delivered mid-single-digit organic sales growth. Per management, the top-line decline was driven by Proprietary Products&#39; lower HVP sales and weak Generic product sales. However, higher Contract Manufacturing component sales and continued demand for NovaPure and self-injection device platforms partially offset the decline.
West Pharmaceutical also continues to expand its high-value product manufacturing capacity to support rising customer demand from recent launches and anticipates drug programs in the coming years.WST maintains its research-scale production facilities and laboratories for creating new products. It also provides contract engineering design and development services to help customers with new product developments.
The company continues to pursue innovative strategic platforms in prefillable syringes, injectable containers, advanced injections, and safety and administration systems. In the first quarter, the company&#39;s R&amp;D expenses increased 2.9% from the prior-year period&#39;s level.
West Pharmaceutical remains committed to seeking innovative opportunities for the acquisition, licensing, partnering or development of products, services and technologies. The company is focused on its objective of connecting dots throughout science and technology for potential value creation.
<h3>Factors Hurting the Stock</h3>
The growing exposure to international markets makes WST susceptible to adverse foreign exchange volatility. Unfavorable fluctuations in currency exchange rates can affect the company&#39;s international sales. Although weaker, declining sales related to COVID-19 vaccines continue to hurt the Biologics market unit. The company expects to reach pre-COVID levels soon. However, destocking by WST&#39;s customers is likely to continue to hurt the top line like the first quarter.
Contraction in gross and operating margins does not bode well.
<h3>Estimates Trend</h3>
The company has been witnessing an improving estimate movement for 2024. In the past 60 days, the Zacks Consensus Estimate for earnings has increased 1.8% to $7.76 per share. The figure implies a decline of 4% from the prior-year level. The consensus mark for revenues is pegged at $3.01 billion, indicating a 2% increase from the 2023 level.
<div class="chart_embed">
<h3>West Pharmaceutical Services, Inc. Price</h3>
<img alt="West Pharmaceutical Services, Inc. Price" src="https://staticx-tuner.zacks.com/images/charts/ce/1718976635.png" style="height:254px; width:543px" title="" />
West Pharmaceutical Services, Inc. price | West Pharmaceutical Services, Inc. Quote
</div>
<h3>Stocks to Consider</h3>
Some better-ranked stocks in the broader medical space are DaVita Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dva#NYSE">DVA</a>), Boston Scientific (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bsx#NYSE">BSX</a>) and Hologic (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/holx#NASDAQ">HOLX</a>).
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 13.6%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 29.4%.&nbsp;
DaVita&#39;s shares have risen 35.7% compared with the industry&#39;s 8.4% growth year to date.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 12.5% in 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.49%.
BSX&#39;s shares have risen 32.1% year to date compared with the industry&#39;s 3% growth.
Hologic, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.94%.
Hologic&#39;s shares have risen 0.1% year to date compared with the industry&#39;s 5.6% growth.
<a href="https://www.zacks.com/stock/news/2291719/reasons-to-hold-west-pharmaceutical-wst-in-your-portfolio-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2291719">To read this article on Zacks.com click here.</a>

Reasons to Hold West Pharmaceutical in Your Portfolio Now

The Medical Instruments industry has been witnessing a gradual transition from remote healthcare and contactless services during the pandemic to its original space of point-of-care testing, heavy as well as minimally invasive implants, elective procedures, and so on. This industry is highly fragmented, with participants engaged in research and development (R&amp;D) in therapeutic areas.
The Zacks defined Medical Instruments industry has advanced 8.9% in the past year and 9.7% year to date, respectively. Since the Medical Instruments industry ranks within the top 38% of Zacks Ranked industries, we expect it to outperform the market over the next three to six months.
The medical instruments space has been benefiting from the ongoing merger and acquisition trend. The smaller and mid-sized industry players have been trying to compete with the big shots through consolidation. This trend is more visible after the pandemic-led downturn. The big players are also attempting to enter new markets by acquiring niche products.
Moreover, since the beginning of 2023, this industry has been witnessing a massive adoption of artificial intelligence&nbsp;and the Internet of Medical Things in the form of digital healthcare options in hospitals and other healthcare settings. Digital enhancement, amid cost optimization proves to be better for clinical outcomes.
With an increase in the adoption of digital platforms within the medical device space, robotic surgeries, big-data analytics, bioprinting, 3D printing, electronic health records, predictive analytics, real-time alerting and revenue cycle management services are gaining prominence in the United States.
An October 2023 report of Precedence Research suggested that the global digital health market size is anticipated to reach around $939.54 billion by 2032, up from $262.63 billion in 2022, at a CAGR of 13.1%.
However, the Medical Instruments players are suffering from logistical challenges and higher unit costs. The pandemic-led devastation of the global supply-chain management system and the effects of monetary policy tightening by the Fed to combat a record-high inflation rate and the withdrawal of fiscal support amid high debt are negatively impacting the industry.
<h3>Our Top Picks</h3>
We have narrowed our search to five Medical Instruments stocks with strong potential for 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank# 2 (Buy).
The chart below shows the price performance of our five picks year to date.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/bd/67326.jpg?v=1468466896" /> 
Image Source: Zacks Investment Research
Alcon Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/alc#NYSE">ALC</a>) is witnessing strength in the Surgical and Vision Care segments backed by healthy markets. Within Surgical, ALC continues to gain market share driven by strong consumables and equipment sales. ALC&#39;s flagship lenses, Vivity and PanOptix and monofocal torics continue to lead the category globally.
In Vision Care, ALC is registering solid growth, banking on strong sales of its contact lenses and ocular health products. In contact lenses, ALC is successfully executing its strategy of investing in fast-growing market segments. ALC is witnessing a strong uptake of its specialty daily lenses, including DAILIES Total1 Toric, DAILIES Total1 Multifocal and Precision1 Toric.
Alcon has an expected revenue and earnings growth rate of 6.2% and 11.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days.
RxSight Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rxst#NASDAQ">RXST</a>) is a commercial-stage medical device company, engaged in the research and development, manufacture, and sale of light-adjustable intraocular lenses used in cataract surgery in the United States and internationally.
RXST offers the RxSight system that enables doctors to customize and enhance the visual acuity for patients after a cataract surgery. RXST&#39;s RxSight system includes RxSight Light Adjustable Lens, a unique photosensitive material that changes shape and power.
RxSight has an expected revenue and earnings growth rate of 51.6% and 73.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 26% over the last 30 days.
Hologic Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/holx#NASDAQ">HOLX</a>) continues to witness revenue growth with a recovery in procedural volumes and an acceleration in new business lines. HOLX&#39;s GYN Surgical business is registering growth driven by contributions from MyoSure Fluent Fluid Management and Laparoscopy.
HOLX&#39;s expanded global installed base of Panthers instruments represents the catalyst for sustained growth in Diagnostics. HOLX&#39;s international business continues to drive strong top-line growth. To streamline its operations and reduce the cost of revenues, Hologic has been adopting strategies that are likely to drive future growth.
Hologic has an expected revenue and earnings growth rate of 0.1% and 2.8%, respectively, for the current year (ending September 2024). The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the last 30 days.
Veracyte Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vcyt#NASDAQ">VCYT</a>) continues the strong growth momentum with a robust display of strength in the testing business using its established diagnostic platform. Afirma test&#39;s differentiation is leading to market share gains owing to the evidence of its quality and performance. The new GRID ROU tool is garnering strong interest from physicians, while the addition of TERT testing reinforces VCYT&#39;s competitive position.
The Decipher Prostrate test is also making strides, achieving a &lsquo;Level 1B&#39; designation in the updated NCCN guidelines and advancing on the reimbursement front. VCYT&#39;s strategic R&amp;D investment in long-term growth projects is paying off. Favorable solvency appears encouraging.
Veracyte has an expected revenue and earnings growth rate of 11.9% and 81.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 34.5% over the last 30 days.
Masimo Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/masi#NASDAQ">MASI</a>) products have been the subject of various studies over the past few months, which is promising. MASI&#39;s focus on patient monitoring and its ongoing research and product development efforts are also impressive. A solid product suite is likely to aid MASI in solidifying its business globally. A strong liquidity position is an added plus.
Masimo has an expected revenue and earnings growth rate of 11.9% and 5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 28.5% over the last 30 days.
<a href="https://www.zacks.com/stock/news/2277850/buy-5-medical-instruments-stocks-to-enhance-your-portfolio?cid=CS-BENZ-FT-analyst_blog|investment_ideas-2277850">To read this article on Zacks.com click here.</a>

Small Cap

MASI

RXST

VCYT

Buy 5 Medical Instruments Stocks to Enhance Your Portfolio

<a href="https://www.fda.gov/medical-devices/medical-device-recalls/hologic-inc-recalls-biozorb-marker-due-complications-implanted-devices" title="https://www.fda.gov/medical-devices/medical-device-recalls/hologic-inc-recalls-biozorb-marker-due-complications-implanted-devices">https://www.fda.gov/medical-devices/medical-device-recalls/hologic-inc-recalls-biozorb-marker-due-complications-implanted-devices</a>

Hologic Recalls BioZorb Marker Due To Complications With Implanted Devices

Hologic, Inc. Recalls Biozorb Marker Due To Reported Complications And Adverse Events With Implanted Devices - FDA

Argus Research analyst David Toung maintains Hologic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>) with a Buy and raises the price target from $89 to $95.

Argus Research Maintains Buy on Hologic, Raises Price Target to $95

JP Morgan analyst Casey Woodring maintains Hologic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>) with a Overweight and raises the price target from $85 to $91.

JP Morgan Maintains Overweight on Hologic, Raises Price Target to $91

In the latest quarter, 4 analysts provided ratings for Hologic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>), showcasing a mix of bullish and bearish perspectives.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets, analyzed by analysts, offer insights with an average target of $88.25, a high estimate of $95.00, and a low estimate of $78.00. This current average reflects an increase of 13.14% from the previous average price target of $78.00. 
<img src="https://www.benzinga.com/files/images/story/2024/1714741213_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive Hologic. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Mike Matson</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$90.00</td>
<td>-</td>
</tr>
<tr>
<td>Mike Matson</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$90.00</td>
<td>-</td>
</tr>
<tr>
<td>Vijay Kumar</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>In-Line</td>
<td>$78.00</td>
<td>$76.00</td>
</tr>
<tr>
<td>Patrick Donnelly</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$95.00</td>
<td>$80.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Hologic. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Hologic compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Hologic's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Capture valuable insights into Hologic's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/HOLX/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Hologic analyst ratings.</a>
<h2>Get to Know Hologic Better</h2>
Hologic manufactures proprietary products for the healthcare needs of women. The company operates in five segments: diagnostics (60% of total sales, boosted by pandemic), breast health (14% of sales, suppressed by pandemic), surgical (11%), and skeletal health (1%). While the company traditionally focused on breast health, the acquisition of Gen-Probe put greater emphasis on commercial diagnostics. The United States accounts for the largest portion of the firm's revenue (69%), followed by Europe (20%), Asia (8%), and other international markets (3%). Hologic is headquartered in Bedford, Massachusetts.
<h3>Financial Insights: Hologic</h3>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Decline in Revenue: Over the 3 months period, Hologic faced challenges, resulting in a decline of approximately -5.69% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: Hologic's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 24.33% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Hologic's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.1%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Hologic's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.8% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Hologic's debt-to-equity ratio is below the industry average. With a ratio of 0.55, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>The Significance of Analyst Ratings Explained</h2>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Deep Dive Into Hologic Stock: Analyst Perspectives (4 Ratings)

Needham analyst Mike Matson reiterates Hologic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>) with a Buy and maintains $90 price target.

Reiteration

Needham Reiterates Buy on Hologic, Maintains $90 Price Target

WIIM

Hologic shares are trading higher after the company reported better-than-expected Q2 earnings and narrowed its guidance.

Guidance

Hologic Revises FY24 Adj EPS Outlook From $3.97-$4.12 To $4.02-$4.12 (Est $4.03), Revenue From $3.99B-$4.065B To $4B-$4.05B (Est $4.247B)

Hologic Expects Q3 Adj EPS Of $0.98-$1.05 (Est $1.02), Revenue Of $992.5M-$1,007.5M (Est $1.011B)

BTIG analyst Ryan Zimmerman has maintained their neutral stance on HOLX stock, giving a Hold rating on April 29. Ryan Zimmerman has given his Hold ...

Hologic: Hold Rating Affirmed Amid Mixed Financial Performance and Modest Growth Outlook

Companies in the Healthcare sector have received a lot of coverage today as analysts weigh in on Community Health (CYH – Research Report) and Holog...

Analysts Have Conflicting Sentiments on These Healthcare Companies: Community Health (CYH) and Hologic (HOLX)

Companies in the Healthcare sector have received a lot of coverage today as analysts weigh in on Ultragenyx Pharmaceutical (RARE – Research Report)...

Analysts Have Conflicting Sentiments on These Healthcare Companies: Ultragenyx Pharmaceutical (RARE), Hologic (HOLX) and Arbutus Biopharma (ABUS)

Hologic: Women's Health Play Looks Healthier Itself

Hologic's recall of BioZorb Markers classified as FDA's most serious type

Parnassus Mid Cap Fund Q1 2024 Investment Commentary

In a report released on June 21, Conor McNamara from RBC Capital maintained a Hold rating on Hologic (HOLX – Research Report), with a price target ...

Hologic (HOLX) Receives a Hold from RBC Capital

Goldman's top 50 high Sharpe Ratio stocks

Analyst Mason Carrico of Stephens maintained a Buy rating on Hologic (HOLX – Research Report), with a price target of $87.00. Mason Carrico has giv...

Hologic (HOLX) Buy Rating Affirmed: Strong Position in Women's Health and Growth Potential

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Sports betting is a huge, rapidly growing business in the U.S. According to Statista, the revenue of <a href="https://www.statista.com/outlook/amo/online-gambling/online-sports-betting/united-states" target="_blank">the U.S. online sports betting market</a> reached about $19 billion in 2023, up from roughly $15 billion in 2022. And in 2026, the sector&rsquo;s sales are expected to surge to nearly $40 billion.



Moreover, between 2024 and 2029, experts predict that the space&rsquo;s compound annual growth rate will be an impressive 12%, while they estimate it will attract nearly 55 million users by 2029. Providing more evidence that the U.S. online sports sector is attractive, Carl Icahn, a renowned investor, and a multibillionaire, <a href="https://www.bloomberg.com/news/articles/2024-05-31/carl-icahn-said-to-build-sizable-stake-in-casino-group-caesars" target="_blank">obtained</a> &ldquo;a sizable position&rdquo; in Caesars Entertainment (NYSE:<a href="https://investorplace.com/stock-quotes/czr-stock-quote/" target="_blank">CZR</a>), Bloomberg reported on May 31. One of Caesar&rsquo;s most valuable assets is its digital unit.



Last quarter, the latter business, which includes an online sports betting app, <a href="https://www.legalsportsreport.com/180618/online-gaming-a-bright-spot-for-caesars-through-difficult-q1/" target="_blank">generated $5 million in EBITDA,</a> excluding certain items. Moreover, its revenue jumped 18.5% compared to the same period a year earlier to $282 million. Here are three top online sports betting stocks to buy now.



<h2>DraftKings (DKNG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/04/draftkings-300x169.jpg" alt="DraftKings (DKNG) logo, magnified, on its app."><div>Source: Lori Butcher/Shutterstock.com</div></div>DraftKings (NASDAQ:<a href="https://investorplace.com/stock-quotes/dkng-stock-quote/" target="_blank">DKNG</a>) is the most attractive pure play on online sports betting. On June 10, Morgan Stanley <a href="https://seekingalpha.com/news/4114402-draftkings-is-a-top-pick-at-morgan-stanley-with-positive-catalysts-in-play?source=content_type%3Areact%7Csection%3Asummary%7Csection_asset%3Anews_news%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A4" target="_blank">identified DKNG stock</a> as &ldquo;a top pick in the North America gaming and lodging sector.&rdquo;



The bank believes that the company&rsquo;s free cash flow has reached a positive turning point, while the firm is benefiting from the strong growth of the sports betting market and the sector&rsquo;s relatively strong pricing trends.



Bank of America was also upbeat on DKNG stock earlier this month, as the bank <a target="_blank" href="https://seekingalpha.com/news/4112692-nvidia-draftkings-and-kirby-get-called-up-to-bofas-us-1-list?source=content_type%3Areact%7Csection%3Asummary%7Csection_asset%3Anews_news%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A8">added the shares</a> to its list of best investment ideas.



On May 2, the company reported very strong Q1 results. Its top line jumped 53% versus the same period a year earlier to $1.17 billion, while its EBITDA, excluding certain items, came in at $22.39 million, versus an adjusted EBITDA loss of $221.6 million. Further, DraftKings raised the midpoint of its 2024 sales guidance to $4.9 billion from $4.775 billion, and the firm increased its adjusted EBITDA outlook to $500 million from $460 million.



The company&rsquo;s strong financial performance makes it one of the best sports betting stocks to buy.



<h2>Caesars Entertainment (CZR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/03/czr-stock-1-300x169.jpg" alt="Caesar's Palace (CZR) in Las Vegas"><div>Source: Jason Patrick Ross/Shutterstock.com</div></div>As I mentioned in the introduction to this column, the well-regarded, multibillionaire investor Carl Icahn obtained a &ldquo;sizeable position&rdquo; in Caesars, according to a report by Bloomberg that was published last month. Icahn <a href="https://finance.yahoo.com/news/long-term-returns-carl-icahn-150229115.html" target="_blank">has had many successful investments.</a> For example, he obtained a 64% profit from his stake in medical supplies company Hologic (NASDAQ:<a href="https://investorplace.com/stock-quotes/holx-stock-quote/" target="_blank">HOLX</a>), versus the S&amp;P 500&rsquo;s gain of just 16% during the same period, while his investment in Dell Technologies (NYSE:<a href="https://investorplace.com/stock-quotes/dell-stock-quote/" target="_blank">DELL</a>) yielded him a 14.5% gain, well above the S&amp;P&rsquo;s loss of 9.6% in the same time frame.



Moreover, as I noted in this article&rsquo;s opening paragraph, the company&rsquo;s digital unit, including its sports betting business, appears to perform very well. That&rsquo;s because the <a href="https://seekingalpha.com/pr/19706221-caesars-entertainment-inc-reports-first-quarter-2024-results?hasComeFromMpArticle=false&amp;source=content_type%253Areact%257Csection%253Amain_content%257Cbutton%253Abody_link%257Cfirst_level_url%253Anews" target="_blank">division&rsquo;s top line climbed</a> 18.5% year-over-year to $282 million in Q1, while its adjusted EBITDA reached $5 million. That was a big improvement over the adjusted EBITDA loss of $4 million that the unit posted in Q1 of 2023 and represented the fourth straight quarter of positive adjusted EBITDA for the company&rsquo;s digital assets.



Earlier this year, the company <a href="https://abc11.com/caesars-sportsbook-mobile-sports-betting-north-carolina/14373703/" target="_blank">launched mobile sports betting</a> in North Carolina. Over the longer term, its sports betting business will likely get a big boost from legalizing sports gambling in the large states of California, Texas, and Georgia. Efforts are underway to legalize the practice in all of those jurisdictions.



<h2>MGM Resorts (MGM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/12/mgm_growth_mgp1600-300x169.jpg" alt="MGM Stock Shows Signs of Life Amid Second Virus Wave Concerns"><div>Source: Jason Patrick Ross / Shutterstock.com</div></div>BetMGM is an online sports betting and iGaming joint venture owned by MGM (NYSE:<a href="https://investorplace.com/stock-quotes/mgm-stock-quote/" target="_blank">MGM</a>) and U.K.-based Entain (OTCMKTS:<a href="https://investorplace.com/stock-quotes/gmvhf-stock-quote/" target="_blank">GMVHF</a>). Last year, BetMGM&rsquo;s revenue jumped 36% to $1.96 billion, representing the upper end of the unit&rsquo;s guidance of $1.8 billion to $2 billion. Also, BetMGM&rsquo;s same-state revenue climbed 14% last year, while it generated positive EBITDA in the second half of the year.



BetMGM expects to generate EBITDA of $500 million in 2026. And according to World Casino News, BetMGM&rsquo;s &ldquo;<a target="_blank" href="https://news.worldcasinodirectory.com/betmgm-reached-1-96billion-in-revenues-in-2023-looking-to-hit-500-million-ebitda-by-2026-112135#:~:text=BetMGM%20Reached%20%241.96Billion%20in,%24500%20Million%20EBITDA%20by%202026">first-time deposits (and)</a> bonus levels&rdquo; also climbed last year. Last year, the unit launched new operations in Ohio, Massachusetts, and Kentucky. In March, the unit <a target="_blank" href="https://www.prnewswire.com/news-releases/betmgm-launches-mobile-sports-betting-in-north-carolina-302085495.html">started operations in</a> North Carolina. The division&rsquo;s 2024 financial results are likely to be boosted by its entrance into North Carolina and its first full year in the three states in which it launched in 2023. And like Caesars, BetMGM will probably get a big lift from the eventual legalization of sports betting in California, Texas, and Georgia.



Meanwhile, MGM, which has many casinos in Las Vegas, is also likely to get a big boost from the accelerating growth of gambling revenue in the city. I&rsquo;m drawing that conclusion from the fact that <a target="_blank" href="https://seekingalpha.com/news/4111217-nevada-casinos-notch-record-gaming-win-for-the-month-of-april?source=content_type%3Areact%7Csection%3Asummary%7Csection_asset%3Anews_news%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A6">the &ldquo;gaming win&rdquo; of casinos </a>on the Las Vegas Strip jumped 6.6% versus the same period a year earlier to a record $666 million.



On the date of publication, Larry Ramer held a long position in MGM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel&rsquo;s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/06/3-online-sports-betting-stocks-that-look-like-likely-winners/">3 Online Sports Betting Stocks That Look Like Likely Winners</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Online Sports Betting Stocks That Look Like Likely Winners

ABUS

ADBE

AKAM

ANSS

AVTR

BEPC

BLDR

BRENF

CBOE

CMCSA

CSCO

DELL

DKNG

EPAM

FERG

FTNT

GMVHF

GWRE

INTC

JBHT

KEYS

KLAC

LRCX

MDLZ

MNST

NDSN

ODFL

RARE

RGEN

SBAC

SNPS

TRMB

VRSN

VTRS

WYNN

XLRE

Press Releases

Newly Published Results Reveal a Significant Proportion of Early-Stage HR+ Breast Cancer Survivors May Be Over- or Undertreated Without Breast Cancer Index Genomic Testing

Hologic to Announce Financial Results for the Second Quarter of Fiscal 2024 on Thursday, May 2, 2024

Opinion

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Hologic Announces Financial Results for Second Quarter of Fiscal 2024

Hologic to Webcast Presentations at Upcoming Investor Conferences

Hologic to Announce Financial Results for the Third Quarter of Fiscal 2024 on Monday, July 29, 2024

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