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Boston Scientific Hits a 52-Week High on Solid Prospects

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Share price of Natick, MA-based Boston Scientific Corporation (BSX - Free Report) reached a new 52-week high of $26.76 on May 16, eventually closing a bit lower at $26.48. The company gained 18.8% over the past one year, much better than the S&P 500’s gain of 9.8% over the same period.

Average volume of shares traded over the last three months was remarkable at approximately 7.44 million. The stock has a market cap of $36.26 billion.

In the majority of last one year, Boston Scientific has outshined the Zacks categorized Medical-Products Industry with respect to share price movement. The stock has climbed 18.8%, way higher than the broader industry’s gain of 9.6%.



The company’s long-term growth fundamentals are compelling. This Zacks Rank #3 (Hold) company recorded a five-year CAGR for revenue of 3.7% and had earnings growth rate of 15.2% compared to the industry’s average of 4.5%.

Further, Boston Scientific’s estimate revision trend for the current year is favorable. In the past 30 days, six estimates have moved up with two downward revisions. The magnitude of estimate revision over the same time period increased around 1% to $1.25 per share.

Growth Drivers

The latest 52-week high came on the back of a series of recent developments. In recent times, Boston Scientific released positive dataset related to its WATCHMAN Left Atrial Appendage Closure (LAAC) device. Data confirmed that the WATCHMAN device had a high implant success rate and was effective in stroke reduction for patients with non-valvular atrial fibrillation, including those patients deemed unsuitable for oral anticoagulation.

Management also announced favorable results from the REPRISE III clinical trial with regard to its LOTUS Valve System. The company also unveiled results from the U.S. post-market approval study evaluating the Subcutaneous Implantable Defibrillator (S-ICD) system.

Further, Boston Scientific received U.S. FDA approval for the Resonate group of implantable cardioverter defibrillator and cardiac resynchronization therapy defibrillator systems. The approval includes new features in Resonate devices, including SmartCRT technology, to help physicians improve heart failure management.

Meanwhile, management has been on an acquisition spree to expand its foothold globally. The company completed the buyout of Switzerland-based Symetis SA in a bid to fortify its structural heart business in Europe.

All these factors are expected to boost the company’s share price in the days ahead.

Key Picks

Better-ranked stocks in the broader medical sector are Luminex Corporation , Hologic, Inc. (HOLX - Free Report) and Edward Lifesciences, Inc. (EW - Free Report) . Notably, Luminex sports a Zacks Rank #1 (Strong Buy), while Hologic and Edward Lifesciences carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Luminex has an expected long-term adjusted earnings growth of almost 16.3%. The stock added roughly 17.0% over the last three months.

Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 30.5%.

Edward Lifesciences recorded a stellar EPS growth rate of almost 16% (last 3–5 years of actual earnings).

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