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Boston Scientific (BSX) Rises But Trails Market: What Investors Should Know

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The latest trading session saw Boston Scientific (BSX - Free Report) ending at $84, denoting a +0.1% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.15%.

Shares of the medical device manufacturer witnessed a gain of 6% over the previous month, beating the performance of the Medical sector with its gain of 0.38% and the S&P 500's gain of 2%.

Analysts and investors alike will be keeping a close eye on the performance of Boston Scientific in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.58, signifying a 16% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.03 billion, indicating a 14.36% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $2.40 per share and a revenue of $16.26 billion, demonstrating changes of +17.07% and +14.22%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Boston Scientific. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% increase. Boston Scientific is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Boston Scientific's current valuation metrics, including its Forward P/E ratio of 34.96. This indicates a premium in contrast to its industry's Forward P/E of 24.05.

Also, we should mention that BSX has a PEG ratio of 2.78. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Medical - Products industry was having an average PEG ratio of 2.06.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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