Gartner Analyst Changes Outlook; Check Out Wednesday's Top 5 Downgrades
Analyst Downgrades: Keybanc downgraded Global Payments Inc from Overweight to Sector Weight, while Jefferies downgraded Commercial Metals Co from Buy to Hold, maintaining a price target of $70.
Further Downgrades: JP Morgan downgraded Hologic Inc from Overweight to Neutral with a price target of $78, and Barclays downgraded Gartner Inc from Overweight to Equal-Weight, reducing the price target from $320 to $270.
W R Berkley Corp Rating Change: BMO Capital downgraded W R Berkley Corp from Market Perform to Underperform, keeping the price target at $64.
Current Stock Prices: As of Tuesday, Global Payments shares closed at $87.65, Commercial Metals at $62.06, Hologic at $73.98, Gartner at $258.17, and W R Berkley at $73.48.
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- FDA Approval: Hologic's Aptima® HPV Assay has received FDA approval, becoming the only mRNA-based HPV test, designed to enhance flexibility and choice in cervical cancer screening, which is expected to significantly improve screening efficiency for clinicians.
- Importance of Screening: It is estimated that by 2026, approximately 13,490 new cases of cervical cancer will be diagnosed in the U.S., with about 4,200 women dying from the disease; Hologic's testing can reduce these preventable deaths through early screening and timely follow-up.
- Clinical Research Support: The approval is based on one of the largest real-world HPV screening studies involving over 650,000 women, showing that the sensitivity of the Aptima HPV Assay is clinically comparable to that of an FDA-approved DNA-based HPV test, further enhancing its credibility in clinical applications.
- Diverse Screening Options: Hologic's portfolio now includes Pap + HPV co-testing, Pap testing, and HPV primary testing, providing multiple FDA-approved screening methods that help physicians select the most appropriate testing approach based on patient age and risk factors.
- Earnings Miss: Hologic reported a Q4 non-GAAP EPS of $1.04, missing expectations by $0.06, indicating pressure on profitability that could undermine investor confidence.
- Flat Revenue: The company’s Q4 revenue stood at $1.05 billion, flat year-over-year but $20 million below market expectations, reflecting weak market demand that may impact future growth strategies.
- Challenging Outlook: Hologic indicated that the outlook for 2026 is more challenging due to halted product shipments, which could lead to a decline in market share, necessitating a reassessment of product lines and market strategies to address these challenges.
- Analyst Rating Watch: Following the earnings miss, analysts' quant ratings on Hologic may be affected, prompting investors to monitor subsequent rating changes to adjust their investment strategies.
- Earnings Announcement Date: Hologic (HOLX) is set to release its Q4 fiscal year 2023 earnings on January 29th after market close, with consensus EPS estimate at $1.10, reflecting a 2.7% year-over-year decline, and revenue estimate at $1.07 billion, indicating a 1.9% year-over-year increase.
- Historical Performance: Over the past two years, Hologic has consistently beaten EPS estimates 100% of the time and revenue estimates 75% of the time, demonstrating strong execution in financial forecasting.
- Estimate Revision Trends: In the last three months, EPS estimates have seen five upward revisions and no downward adjustments, while revenue estimates experienced four upward revisions and one downward, indicating growing market confidence in the company's future performance.
- Challenges and Opportunities: Despite facing challenges in product shipments for 2026, Hologic reported a non-GAAP EPS of $1.13, exceeding expectations by $0.03, and revenue of $1.05 billion, surpassing estimates by $20 million, showcasing the company's resilience in maintaining profitability amid adversity.
- FOMC Meeting Insights: The first FOMC meeting of 2026 provided significant information for Federal Reserve observers.
- Market Reaction: Despite the insights from the meeting, there was little impact on stock market performance.

Market Performance: Stocks ended the week mostly unchanged after experiencing significant volatility, with the S&P 500 index dropping 2.1% on Tuesday, marking its largest decline since October.
Political Influence: The decline was triggered by President Trump's threats of tariffs on European countries related to his controversial interest in acquiring Greenland from Denmark.
Recovery Efforts: Following the initial drop, the stock market managed to recover most of its losses later in the week.
Trump's Remarks: The recovery was aided by Trump's speech at the World Economic Forum in Davos, where he softened his stance on the tariff threats.
- Earnings Season Begins: Apple is set to report earnings next Thursday, with expectations of growth driven by the iPhone 17 replacement cycle, potentially ending its eight-week decline and boosting investor confidence.
- Tech Stocks Under Pressure: Meta and Microsoft are down over 18% from their 52-week highs, Apple is down 13%, and Tesla nearly 10%, setting a low bar for upcoming earnings that may allow these giants to exceed market expectations.
- Small Caps Leading: The Russell 2000 index has rallied over 10% year-to-date, while the S&P 500 is up about 1%, indicating a strong performance from small caps that is further driving overall market gains.
- Federal Reserve Meeting: The upcoming Federal Reserve meeting is expected to keep interest rates steady at 3.50% to 3.75%, with investors keenly awaiting Chair Powell's comments to gauge future monetary policy direction.









