Can Hologic, Inc. Shares Fly Above $25?

Does this analyst make a good case? Or is it just more noise from Wall Street?

Apr 24, 2014 at 3:58PM

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Hologic (NASDAQ:HOLX) gained about 2% on Wednesday after BTIG initiated coverage on the medical imaging technologist with a buy rating.

So what: Along with the bullish call, analyst Sean Lavin planted a price target of $26 on the stock, representing about 27% worth of upside to yesterday's close. So while momentum traders might be turned off by Hologic's price sluggishness in recent months, Lavin's call could reflect a growing sense on Wall Street that its prospects are becoming too cheap to pass up.

Now what: According to BTIG, Hologic's risk/reward trade-off is particularly attractive at this point. "If Hologic can maintain flat to slightly down revenue and management follows its plan to pay down debt and buy back shares, EPS growth is nearly automatic," said Lavin. "As earnings growth shows up, a higher multiple should follow. While ThinPrep declines do worry us, we see expectations as very achievable given expected strong growth in the new 3D mammogram and MyoSure products." When you couple that upbeat outlook with Hologic's cheapish forward P/E of 13, it's tough to disagree with BTIG's bullishness. 

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Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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