Hologic, Inc. HOLX announced that it has completed the previously announced acquisition of Gynesonics, Inc. — a privately held medical device company focused on developing minimally invasive solutions for women’s health. Hologic acquired Gynesonics for approximately $350 million. 

The latest acquisition is aimed at strengthening Hologic’s GYN Surgical business segment.

Likely Trend of HOLX Stock Following the News

Following the announcement, shares of the company surged 0.8% to $73.77 yesterday.

The transformation of Hologic’s Surgical business over recent years has been phenomenal. The business is currently focusing on internal innovation and product line additions through value-added acquisitions. The company’s latest acquisition of Gynesonics strengthens its commitment to providing women with minimally invasive treatment. 

The acquisition enhances the existing Surgical portfolio, offering GYN surgeons worldwide an expanded range of options to treat women suffering from heavy periods and fibroids. Accordingly, we expect the latest acquisition to bolster investor confidence and maintain an upward momentum in HOLX's share price in the upcoming days.

Hologic has a market capitalization of $16.26 billion at present. The company’s earnings yield of 5.85% compares favorably to the industry’s -4.10%. It delivered an average earnings surprise of 3.1% for the trailing four quarters.

More on Hologic’s Acquisition of Gynesonics

Gynesonics is the developer of Sonata System technology. The Sonata System is used for diagnostic intrauterine imaging and transcervical treatment of certain symptomatic uterine fibroids. The technology combines real-time intrauterine ultrasound guidance with targeted radiofrequency ablation in an incision-less procedure.

The acquisition will add Sonata System to Hologic’s Surgical portfolio. The Sonata System will complement and expand Hologic’s range of minimally invasive solutions for heavy periods and fibroids. The acquisition will further increase access to the Sonata System. The acquisition reflects Hologic’s commitment to advancing women's health and improving patient outcomes through cutting-edge technologies.

Hologic’s Previous Strategic Acquisition

Earlier in 2024, Hologic acquired Endomagnetics Limited — a UK-based developer of breast cancer surgery technologies — for approximately $310 million. This strategic move bolsters Hologic's breast surgery portfolio, offering surgeons and radiologists an expanded range of innovative solutions for breast cancer procedures. Per Hologic, the acquisition of Endomagnetics is a pivotal step for the company in enhancing its breast health portfolio with advanced technologies. 

Image Source: Zacks Investment Research

Industry Prospects Favor Hologic

Per a report from Grand View Research, the global women’s health market size is expected to witness a compound annual growth rate (CAGR) of 5.1% from 2025 to 2030. Market growth can be attributed to the increase in the geriatric population of women and the introduction of new advanced therapeutic products for their health. Furthermore, favorable policies initiated by governments to improve women’s health and raise awareness are likely to drive market growth during the aforementioned period. 

Other Recent Developments by Hologic

Last month, Hologic entered into an agreement with the Centers for Disease Control and Prevention to develop analyte-specific reagents — the “active ingredients” of laboratory-developed tests aimed at detecting H5N1 bird flu. The latest development builds on the company’s existing strong portfolio of diagnostic solutions, including assays used for the detection of COVID-19.

The same month, Hologic announced the introduction of its next-generation Genius AI Detection PRO solution for use in the United States, extending its leadership in breast imaging AI.

HOLX Stock Price Performance

In the past year, Hologic’s shares have risen 3.4% compared with the industry’s 5.4% growth.

HOLX’s Zacks Rank & Key Picks

Hologic currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Veracyte VCYT, ResMed RMD and Omnicell OMCL.

Veracyte, carrying a Zacks Rank of #1 (Strong Buy) at present, has an estimated earnings growth rate of 65.8% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

VCYT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 520.58%. Veracyte’s shares have risen 49.2% in the past year compared with the industry’s 5.5% growth.

ResMed, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 21.1% for 2025. 

RMD’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.41%. Its shares have risen 34.1% compared with the industry’s 7.7% growth in the past year. 

Omnicell, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 72.7% for fourth-quarter 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 121.74%.

OMCL’s shares have risen 26.4% against the industry’s 15.7% decline in the past year. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Omnicell, Inc. (OMCL) : Free Stock Analysis Report

ResMed Inc. (RMD) : Free Stock Analysis Report

Hologic, Inc. (HOLX) : Free Stock Analysis Report

Veracyte, Inc. (VCYT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research