We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Invest in Boston Scientific (BSX) Now
Read MoreHide Full Article
Boston Scientific Corporation (BSX - Free Report) is gaining from strength across target markets. Strong worldwide demand for its GI and pulmonary treatment options, traction in Europe for its next-generation WATCHMAN FLX and contribution from accretive acquisitions are important drivers. However, unfavorable currency movements and stiff competition are a concern.
In the past year, this Zacks Rank #2 (Buy) stock has gained 37.1% compared with a 5.5% fall of the industry and a 23.6% rise of the S&P 500.
The renowned manufacturer of medical devices and products has a market capitalization of $95.56 billion. The company’s long-term projected growth of 12.7% compares with the industry’s growth projection of 5.7%.
Let’s delve deeper.
Factors At Play
WATCHMAN, a Long-Term Growth Component: Boston Scientific received the FDA’s approval in September for its next generation of WATCHMAN FLX Pro. The company expects to see continued momentum within the WATCHMAN franchise supported by this approval and other significant investments in clinical evidence. Till the fourth-quarter 2023 earnings call, the company treated more than 400,000 patients globally with the WATCHMAN technology.
In the fourth quarter of 2023, WATCHMAN’s organic sales rallied 23% year over year. The U.S. demand remained solid and international growth was led by China and Japan.
New Strategic Investments to Drive Electrophysiology: Among the significant developments, the company’s international EP growth accelerated in the fourth quarter, growing 46% organically. The upside was fueled by improved FARAPULSE console supply. Till the fourth-quarter earnings call, the company treated more than 40,000 patients globally with the FARAPULSE technology. In January 2024, as a major milestone, Boston Scientific received FDA approval for FARAPULSE and the product entered the U.S. market immediately.
Image Source: Zacks Investment Research
The company recently received U.S. regulatory approval for the new POLARx, which features the POLARx FIT cryoablation balloon catheter.
Upbeat Guidance: Boston Scientific’s full-year 2024 net sales growth is expected to be 8.5-9.5% on a reported basis and 8-9% on an organic basis. The Zacks Consensus Estimate is currently pegged at $15.32 billion, indicating a 7.6% rise from the 2023 reported figure. Full-year adjusted earnings per share are expected in the range of $2.23-$2.27. The Zacks Consensus Estimate is currently pegged at $2.23.
For the first quarter of 2024, revenue growth is projected in the range of 7.5-9.5% on a reported basis (suggesting an increase of 7-9% organically). Adjusted earnings are expected in the range of 50-52 cents per share. The Zacks Consensus Estimate for first-quarter earnings and revenues is pegged at 52 cents and $3.68 billion, respectively.
Downsides
Exposure to Currency Movement: With Boston Scientific generating 40% of its sales from the international market, it is highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener in the past few quarters, as in the case of other important MedTech players, too.
In 2023, the company had an approximate 80 basis-point headwind on revenues from foreign exchange.
Competitive Landscape: The presence of a large number of players has made the medical devices market highly competitive. The company participates in several markets, including Cardiovascular, CRM, Endosurgery and Neuromodulation, where it faces competition from large, well-capitalized companies such as Johnson & Johnson, Abbott, Medtronic, Stryker, Smith & Nephew and Edwards Lifesciences, apart from several other smaller companies.
Estimate Trend
The Zacks Consensus Estimate for Boston Scientific’s 2024 earnings is pegged at $2.25 per share, indicating a 9.8% increase from the 2023 reported number.
The Zacks Consensus Estimate for 2024 revenues is pegged at $15.55 billion, suggesting a 9.2% rise from the 2023 figure.
Key Picks
Some other top-ranked stocks to consider in the broader medical space are Universal Health Services (UHS - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and DaVita (DVA - Free Report) .
Universal Health Services, carrying a Zacks Rank #2 at present, has an estimated growth rate of 4.4% for 2024. UHS’s earnings surpassed estimates in all the trailing four quarters, delivering an average surprise of 5.47%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UHS’ shares have inched up 6.5% in the past year compared with the industry’s 11.8% rise.
Integer Holdings, presently carrying a Zacks Rank of 2, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have rallied 54.8% in the past year against the industry’s 3.5% decline.
Estimates for DaVita’s 2023 earnings per share have remained constant at $8.07 in the past 30 days. Shares of the company have increased 29.9% in the past year compared with the industry’s 4.4% rise.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 36.6%. In the last reported quarter, it delivered an average earnings surprise of 48.4%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Here's Why You Should Invest in Boston Scientific (BSX) Now
Boston Scientific Corporation (BSX - Free Report) is gaining from strength across target markets. Strong worldwide demand for its GI and pulmonary treatment options, traction in Europe for its next-generation WATCHMAN FLX and contribution from accretive acquisitions are important drivers. However, unfavorable currency movements and stiff competition are a concern.
In the past year, this Zacks Rank #2 (Buy) stock has gained 37.1% compared with a 5.5% fall of the industry and a 23.6% rise of the S&P 500.
The renowned manufacturer of medical devices and products has a market capitalization of $95.56 billion. The company’s long-term projected growth of 12.7% compares with the industry’s growth projection of 5.7%.
Let’s delve deeper.
Factors At Play
WATCHMAN, a Long-Term Growth Component: Boston Scientific received the FDA’s approval in September for its next generation of WATCHMAN FLX Pro. The company expects to see continued momentum within the WATCHMAN franchise supported by this approval and other significant investments in clinical evidence. Till the fourth-quarter 2023 earnings call, the company treated more than 400,000 patients globally with the WATCHMAN technology.
In the fourth quarter of 2023, WATCHMAN’s organic sales rallied 23% year over year. The U.S. demand remained solid and international growth was led by China and Japan.
New Strategic Investments to Drive Electrophysiology: Among the significant developments, the company’s international EP growth accelerated in the fourth quarter, growing 46% organically. The upside was fueled by improved FARAPULSE console supply. Till the fourth-quarter earnings call, the company treated more than 40,000 patients globally with the FARAPULSE technology. In January 2024, as a major milestone, Boston Scientific received FDA approval for FARAPULSE and the product entered the U.S. market immediately.
The company recently received U.S. regulatory approval for the new POLARx, which features the POLARx FIT cryoablation balloon catheter.
Upbeat Guidance: Boston Scientific’s full-year 2024 net sales growth is expected to be 8.5-9.5% on a reported basis and 8-9% on an organic basis. The Zacks Consensus Estimate is currently pegged at $15.32 billion, indicating a 7.6% rise from the 2023 reported figure. Full-year adjusted earnings per share are expected in the range of $2.23-$2.27. The Zacks Consensus Estimate is currently pegged at $2.23.
For the first quarter of 2024, revenue growth is projected in the range of 7.5-9.5% on a reported basis (suggesting an increase of 7-9% organically). Adjusted earnings are expected in the range of 50-52 cents per share. The Zacks Consensus Estimate for first-quarter earnings and revenues is pegged at 52 cents and $3.68 billion, respectively.
Downsides
Exposure to Currency Movement: With Boston Scientific generating 40% of its sales from the international market, it is highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener in the past few quarters, as in the case of other important MedTech players, too.
In 2023, the company had an approximate 80 basis-point headwind on revenues from foreign exchange.
Competitive Landscape: The presence of a large number of players has made the medical devices market highly competitive. The company participates in several markets, including Cardiovascular, CRM, Endosurgery and Neuromodulation, where it faces competition from large, well-capitalized companies such as Johnson & Johnson, Abbott, Medtronic, Stryker, Smith & Nephew and Edwards Lifesciences, apart from several other smaller companies.
Estimate Trend
The Zacks Consensus Estimate for Boston Scientific’s 2024 earnings is pegged at $2.25 per share, indicating a 9.8% increase from the 2023 reported number.
The Zacks Consensus Estimate for 2024 revenues is pegged at $15.55 billion, suggesting a 9.2% rise from the 2023 figure.
Key Picks
Some other top-ranked stocks to consider in the broader medical space are Universal Health Services (UHS - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and DaVita (DVA - Free Report) .
Universal Health Services, carrying a Zacks Rank #2 at present, has an estimated growth rate of 4.4% for 2024. UHS’s earnings surpassed estimates in all the trailing four quarters, delivering an average surprise of 5.47%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UHS’ shares have inched up 6.5% in the past year compared with the industry’s 11.8% rise.
Integer Holdings, presently carrying a Zacks Rank of 2, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have rallied 54.8% in the past year against the industry’s 3.5% decline.
Estimates for DaVita’s 2023 earnings per share have remained constant at $8.07 in the past 30 days. Shares of the company have increased 29.9% in the past year compared with the industry’s 4.4% rise.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 36.6%. In the last reported quarter, it delivered an average earnings surprise of 48.4%.