On Sunday, Hologic HOLX presented new research evaluating the performance of its Genius AI Detection 2.0 software across diverse patient populations at the 110^th Scientific Assembly and Annual Meeting of the Radiological Society of North America (“RSNA”). The research, titled “Performance of a Digital Breast Tomosynthesis AI Detection Algorithm in Common U.S. Racial/Ethnic Groups,” revealed that the measured performance of the algorithm was similar across all evaluated cohorts.

Hologic is also introducing its next-generation Genius AI Detection PRO solution for use in the United States, extending its leadership in breast imaging AI.

HOLX Stock’s Likely Trend Following the News

After the announcement on Dec. 1, HOLX shares dipped 0.6%, finishing at $79.00. Meanwhile, the Breast Health segment is driving growth through increased breast imaging service revenues, and contributions from the gantry business and interventional products. The company’s upcoming innovations are likely to see expanded AI applications for improved performance and efficiency. We expect the recent development to boost market sentiment toward HOLX stock.

Hologic currently has a market capitalization of $18.04 billion. The company’s earnings yield of 5.42% compares favorably with the industry’s yield of -5.62%. It delivered an earnings beat of 3.1%, on average, in the trailing four quarters.

Importance of Hologic’s Research Findings

AI is becoming an essential tool in breast cancer, aiding in diagnosis and predicting a patient’s risk level and breast density. The creation of AI algorithms starts with the collection of large, high-quality databases of patient information and images, which are used to develop, train and test the algorithms. By including a diverse range of racial and ethnic groups from the U.S. population in the databases, the developed algorithms minimize inherent biases that create disparities for specific patient groups. Hologic’s new study assessed more than 7,500 digital breast tomosynthesis (DBT) cases from women who identified as Asian, Black, Hispanic or white.

Significant racial disparities in breast cancer screening and treatment exist, with studies indicating that Black women in the United States have a 40% higher death rate from breast cancer than white women. The company says that it strives to provide clinicians with effective, equitable solutions to advance the detection of breast cancer globally, ensuring that its technology performs effectively for all patients regardless of race, ethnicity or background.

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Meanwhile, the company’s latest Genius AI Detection PRO solution expands on the Genius AI Detection 2.0 solution by providing even greater accuracy and efficiency, giving radiologists more confidence and helping reduce false positives.

Other Updates From Hologic

Last month, Hologic entered into a $350 million agreement to acquire Gynesonics, Inc., a company specializing in minimally invasive solutions for women’s health. The acquisition will bring Gynesonics’ Sonata System, a technology intended for diagnostic intrauterine imaging and transcervical treatment of certain symptomatic uterine fibroids, including those associated with heavy menstrual bleeding.

Industry Prospects Favoring Hologic

Per a research report, global AI in the Breast Imaging market was valued at $363.83 million in 2023 and is expected to expand at a compound annual rate of 28.9% by 2031. AI’s popularity in this industry has increased due to the creation of complex AI algorithms that can analyze huge amounts of imaging data.

HOLX Stock Price Performance

In the past six months, shares of Hologic have risen 5.9% compared with the industry’s 0.9% growth.

HOLX’s Zacks Rank & Key Picks

Hologic currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are Penumbra PEN, Haemonetics HAE and Globus Medical GMED, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Penumbra shares have risen 7.8% in the past year. Estimates for the company’s 2024 earnings per share have jumped 8.1% to $2.79 in the past 30 days. PEN’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.54%. In the last reported quarter, it posted an earnings surprise of 23.19%.

Estimates for Haemonetics’ fiscal 2025 earnings per share have jumped 0.4% to $4.59 in the past 30 days. Shares of the company have rallied 8.9% in the past year compared with the industry’s growth of 21.2%. HAE’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.82%. In the last reported quarter, it delivered an earnings surprise of 2.75%.

Estimates for Globus Medical’s 2024 earnings per share have increased 3.9% to $2.95 in the past 30 days. Shares of the company have surged 90.3% in the past year compared with the industry’s 15.1% rise. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%. In the last reported quarter, it delivered an earnings surprise of 27.69%.

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