Jim Cramer - Mad Money Hologic HOLX-Q BUY Oct 03, 2022

Stockchase Research Editor: Michael O'Reilly HOLX manufactures medical equipment and diagnostic devices including COVID-19 test kits. Sales were recently reported up almost 90% and management guidance calls for revenue to double over the year to over $1.5 billion. Trading at 11x earnings, it is good value here. We would buy this with a stop-loss at $56, looking to achieve $89 -- upside potential of 25%. Yield 0% (Analysts’ price target is $89.08)

Stockchase Research Editor: Michael O'Reilly We reiterate HOLX as a TOP PICK. The company manufactures medical equipment and diagnostic devices including COVID-19 test kits and women's health early detection and treatment. It trades at 9x earnings compared to peers at 32x. EPS growth will naturally slow somewhat as the pandemic wave crests, but the company continues to have a good pipeline of projects. We would buy this with a stop loss at $60, looking to achieve $87 - upside potential over 20%. Yield 0% (Analysts’ price target is $86.93)

Stockchase Research Editor: Michael O'Reilly On the back of continued performance growth, we again reiterate HOLX as a TOP PICK. The manufacturer of medical equipment and diagnostic devices including COVID-19 test kits and women's health early detection and treatment is increasing Q1 revenue expectations well above previous guidance. It trades at 10x earnings compared to peers at 18x. Previously reported earnings beat analyst expectations by over 55% and the company maintains an astounding 57% ROE. We like they also continue to increase cash reserves, while paying down debt and buying back shares. EPS growth will naturally slow somewhat as the pandemic wave crests, but the company continues to have a good pipeline of projects. We recommend trailing up the stop (from $60) to $64, looking to achieve $86.50 - upside potential over 20%. Yield 0%

Stockchase Research Editor: Michael O'Reilly We again reiterate this $17 billion market cap developer of medical diagnostics imaging systems of products. Recently reported earnings beat analyst expectations by 85%. Although revenues were down on the year due to the pandemic, they too beat expectations. It trades at 11x earnings compared to peers at 20x. We like that cash reserves continue to grow, while the company buys back shares. We would buy this with a $60 stop loss, looking to achieve $85 -- upside potential over 20%. Yield 0% (Analysts’ price target is $85.09)

(A Top Pick Feb 24/22, Up 7.8%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with HOLX is progressing well. To remain disciplined, we now recommend trailing up the stop (from $60) to $68.

Stockchase Research Editor: Michael O'Reilly We again reiterate HOLX, a $17 billion market cap developer of medical diagnostics imaging systems of products as a TOP PICK. Earnings will be released soon and analysts have been revising up expectations. Many medical device companies have been negatively impacted by the pandemic as it slowed demand for some of their products, but analysts believe HOLX should still be benefitting on most of its products. Nevertheless, we recommend keeping the stop tight at $68, looking to achieve $85 -- upside potential of 20%. Yield 0% (Analysts’ price target is $85.09)

(A Top Pick Apr 26/22, Down 3.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with HOLX has triggered its stop at $68. To remain disciplined, we recommend covering the position at this time.