Medical technology companies are hot and not even climbing price-to-earnings multiples will slow down the likes of Hologic (HOLX) , Zimmer Biomet (ZBH) , Zeltiq (ZLTQ) and NuVasive (NUVA) , said Rich Newitter, managing director at Leerink. 'We think the sector can sustain its multiple premium given solid cash flow generation potential, strong balance sheets and cash flexibility, said Newitter. "It will continue to be a destination for fund rotation.' Shares of Hologic are barely positive year-to-date, but surged last week after the diagnostics specialist reported earnings and revenue that beat analysts' estimates for the 2016 fiscal third quarter. The Marlborough, MA-based medical device company reported earnings of $0.51 a share, higher than analysts' expectations of $0.48 a share. Revenue increased 3.4 percent to $717.4 million year-over-year and was above analysts' projections of $704.3 million. 'The underappreciated aspect of Hologic, and this came out in the quarter, is that the company has more growth drivers across all its other business and there are the beginnings of an international turnaround starting to take form and that has legs into the future,' said Newitter.
More from Video
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.