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Boston Scientific (BSX) Gains From MedSurg Growth & Buyouts
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Boston Scientific (BSX - Free Report) is gaining market share across all segments. New regulatory approvals and accretive acquisitions bode well for long-term growth. The stock carries a Zacks Rank #2 (Buy) currently.
Boston Scientific is consistently gaining market share within its MedSurg segment. The Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of gastrointestinal (GI) and pulmonary treatment options. Particularly, the company is gaining market share with its biliary franchise led by the AXIOS Stent and Delivery System and the hemostasis, single-use imaging and metal stents franchises. Within Urology, Boston Scientific continues to expand its market share globally. The company’s stone management franchise is growing well, led by LithoVue Single-Use Digital Flexible Ureteroscope System.
Within Neuromodulation, Boston Scientific’s pain business is consistently gaining traction on the strength of spinal cord stimulation (SCS), which is driven by its innovative Alpha portfolio with fast therapy in a cognitive suite of digital tools supporting patient activation.
Boston Scientific’s structural heart programs are also gaining momentum, banking on the strong performance of the WATCHMAN left atrial appendage closure device. WATCHMAN is the first device to offer a non-pharmacologic alternative to oral anticoagulants. It has been studied in a randomized clinical trial and is the leading device in percutaneous LAAC globally. The next generation WATCHMAN FLX is making strong inroads in the European market.
We are also impressed with Boston Scientific’s recent acquisitions that have added numerous products (though many are under development) with immense potential. These, in turn, should help boost the top line in the long term.
In March 2024, the company acquired the Endoluminal Vacuum Therapy portfolio from B. Braun. In December 2023, Boston Scientific initiated the acquisition of Axonics, a medical technology company that offers innovative devices to treat urinary and bowel dysfunction. With this $3.7-billion acquisition, the company expects to expand its differentiated technologies portfolio within Urology.
On the flip side, the industry-wide trend of difficult macroeconomic conditions in the form of geopolitical pressure leading to disruptions in economic activity, global supply chains and labor markets are creating a challenging business environment for Boston Scientific. International conflicts, including the Russia-Ukraine war and tension between China and Taiwan, have increased cybersecurity risks on a global basis. Further, volatile financial market dynamics and significant fluctuations in the price and availability of goods and services are putting pressure on Boston Scientific’s profitability. With the sustained macroeconomic pressures, the company may struggle to keep in check its operating expenses.
In the first quarter of 2024, the company reported a 16.3% rise in the cost of products sold, leading to a 67-basis point contraction in gross margin. Further, there was a 12.3% rise in selling, general and administrative expenses.
Hims & Hers Heath stock has increased 19.7% in the past year. Earnings estimates for the company have risen from 10 cents to 18 cents for 2024 and from 23 cents to 32 cents for 2025 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.
Estimates for High Tide’s 2024 earnings per share have remained unchanged in the past 30 days. Shares of the company have surged 69.7% upward in the past year against the industry’s fall of 3.2%.
HITI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 91.7%. In the last reported quarter, it delivered an earnings surprise of 100%.
Estimates for ResMed’s fiscal 2024 earnings per share have moved up 2% to $7.59 in the past seven days. Shares of the company have fallen 6.3% in the past year compared with the industry’s 3.2% decrease.
RMD’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 2.8%. In the last reported quarter, it delivered an average earnings surprise of 10.9%.
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Boston Scientific (BSX) Gains From MedSurg Growth & Buyouts
Boston Scientific (BSX - Free Report) is gaining market share across all segments. New regulatory approvals and accretive acquisitions bode well for long-term growth. The stock carries a Zacks Rank #2 (Buy) currently.
Boston Scientific is consistently gaining market share within its MedSurg segment. The Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of gastrointestinal (GI) and pulmonary treatment options. Particularly, the company is gaining market share with its biliary franchise led by the AXIOS Stent and Delivery System and the hemostasis, single-use imaging and metal stents franchises. Within Urology, Boston Scientific continues to expand its market share globally. The company’s stone management franchise is growing well, led by LithoVue Single-Use Digital Flexible Ureteroscope System.
Within Neuromodulation, Boston Scientific’s pain business is consistently gaining traction on the strength of spinal cord stimulation (SCS), which is driven by its innovative Alpha portfolio with fast therapy in a cognitive suite of digital tools supporting patient activation.
Boston Scientific Corporation Price
Boston Scientific Corporation price | Boston Scientific Corporation Quote
Boston Scientific’s structural heart programs are also gaining momentum, banking on the strong performance of the WATCHMAN left atrial appendage closure device. WATCHMAN is the first device to offer a non-pharmacologic alternative to oral anticoagulants. It has been studied in a randomized clinical trial and is the leading device in percutaneous LAAC globally. The next generation WATCHMAN FLX is making strong inroads in the European market.
We are also impressed with Boston Scientific’s recent acquisitions that have added numerous products (though many are under development) with immense potential. These, in turn, should help boost the top line in the long term.
In March 2024, the company acquired the Endoluminal Vacuum Therapy portfolio from B. Braun. In December 2023, Boston Scientific initiated the acquisition of Axonics, a medical technology company that offers innovative devices to treat urinary and bowel dysfunction. With this $3.7-billion acquisition, the company expects to expand its differentiated technologies portfolio within Urology.
On the flip side, the industry-wide trend of difficult macroeconomic conditions in the form of geopolitical pressure leading to disruptions in economic activity, global supply chains and labor markets are creating a challenging business environment for Boston Scientific. International conflicts, including the Russia-Ukraine war and tension between China and Taiwan, have increased cybersecurity risks on a global basis. Further, volatile financial market dynamics and significant fluctuations in the price and availability of goods and services are putting pressure on Boston Scientific’s profitability. With the sustained macroeconomic pressures, the company may struggle to keep in check its operating expenses.
In the first quarter of 2024, the company reported a 16.3% rise in the cost of products sold, leading to a 67-basis point contraction in gross margin. Further, there was a 12.3% rise in selling, general and administrative expenses.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Hims & Hers Health (HIMS - Free Report) , High Tide (HITI - Free Report) and ResMed (RMD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hims & Hers Heath stock has increased 19.7% in the past year. Earnings estimates for the company have risen from 10 cents to 18 cents for 2024 and from 23 cents to 32 cents for 2025 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.
Estimates for High Tide’s 2024 earnings per share have remained unchanged in the past 30 days. Shares of the company have surged 69.7% upward in the past year against the industry’s fall of 3.2%.
HITI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 91.7%. In the last reported quarter, it delivered an earnings surprise of 100%.
Estimates for ResMed’s fiscal 2024 earnings per share have moved up 2% to $7.59 in the past seven days. Shares of the company have fallen 6.3% in the past year compared with the industry’s 3.2% decrease.
RMD’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 2.8%. In the last reported quarter, it delivered an average earnings surprise of 10.9%.