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Boston Scientific (BSX) Gains As Market Dips: What You Should Know

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In the latest trading session, Boston Scientific (BSX - Free Report) closed at $76.12, marking a +0.3% move from the previous day. This change outpaced the S&P 500's 0.02% loss on the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 0.09%.

Shares of the medical device manufacturer witnessed a gain of 4.36% over the previous month, beating the performance of the Medical sector with its gain of 4.28% and underperforming the S&P 500's gain of 4.59%.

Market participants will be closely following the financial results of Boston Scientific in its upcoming release. The company is predicted to post an EPS of $0.58, indicating a 9.43% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.02 billion, indicating a 11.68% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.32 per share and revenue of $15.99 billion. These totals would mark changes of +13.17% and +12.3%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Boston Scientific. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Boston Scientific holds a Zacks Rank of #2 (Buy).

Investors should also note Boston Scientific's current valuation metrics, including its Forward P/E ratio of 32.7. Its industry sports an average Forward P/E of 22.54, so one might conclude that Boston Scientific is trading at a premium comparatively.

We can also see that BSX currently has a PEG ratio of 2.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. BSX's industry had an average PEG ratio of 2.18 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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