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Is it a Prudent Move to Retain BSX Stock in Your Portfolio for Now?

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Key Takeaways

  • Boston Scientific expanded in oncology and hypertension with Intera Oncology and SoniVie deals.
  • Acquisitions boosted BSX Q2 revenues by 450 basis points, strengthening therapeutic portfolios.
  • BSX's WATCHMAN franchise grew 28% in Q2, aided by CE Mark for next-gen FLX Pro device.

Boston Scientific (BSX - Free Report) is poised for growth in the upcoming quarters, driven by its impressive strategic acquisitions. The long-term prospects of the WATCHMAN devices are encouraging. Meanwhile, headwinds like currency fluctuations and dull macro scenario pose concern for Boston Scientific’s operations.

In the past year, this Zacks Rank #3 (Hold) company's shares have rallied 16.9% compared with the industry and the S&P 500 composite’s growth of 0.3% and 18.8%, respectively.

The renowned manufacturer of medical devices and products has a market capitalization of $1543.77 billion. BSX beat on earnings in each of the trailing four quarters, delivering an average surprise of 8.11%.

Let us delve deeper.

Upsides for BSX Stock

Impressive Value-Adding Acquisitions: Boston Scientific’s recent acquisitions have added numerous products (though many are under development) with immense potential. Boston Scientific completed the acquisitions of Intera Oncology and SoniVie in the second quarter of 2025, strengthening its presence in liver cancer and hypertension treatment technologies. 

These acquisitions — Intera Oncology, with its hepatic artery infusion pump for liver cancer, and SoniVie, with its ultrasound-based renal denervation technology — are expected to strengthen Boston Scientific’s interventional oncology and hypertension portfolios, expanding its presence in high-growth, minimally invasive therapies. These acquisitions contributed approximately 450 basis points to the company’s reported revenue growth in the second quarter.

WATCHMAN, a Long-Term Growth Driver: Boston Scientific’s structural heart programs are fast building momentum, banking on strong performance of the WATCHMAN left atrial appendage closure (LAAC) device. WATCHMAN is the first device to offer a non-pharmacologic alternative to oral anticoagulants that has been studied in a randomized clinical trial and remains the leading device in percutaneous LAAC globally. 

The next-generation WATCHMAN FLX and FLX Pro are strongly capturing the global market. In the second quarter of 2025, the WATCHMAN franchise grew 28%, driven by continued uptake in concomitant procedures in the United States and the recent CE Mark approval of the WATCHMAN FLX Pro, which improves healing, enhances visualization, and fits a wider range of patient anatomies.

Downsides for BSX Stock

Exposure to Currency Movement: With Boston Scientific recording 40% of its sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the last few quarters, as in the case of other important MedTech players, too. In the second quarter of 2025, the company faced a 1.2% headwind on revenues due to foreign exchange.

Zacks Investment Research

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Macroeconomic Headwinds Dent Growth: Boston Scientific continues to face a challenging business environment driven by industry-wide macroeconomic pressures, including geopolitical tensions and global supply-chain disruptions. International conflicts and retaliatory trade actions have increased global risks, while volatile financial markets and fluctuating prices for goods and services are squeezing profitability.

The company lowered its full-year 2025 tariff impact estimate from approximately $200 million to $100 million. Tariffs still underscore the heightened complexity of the current environment. Nevertheless, sustained macroeconomic pressures may make it more difficult for the company to manage operating expenses effectively. In the second quarter of 2025, the company reported a 28.9% rise in the cost of products. Further, there was an 18.7% rise in selling, general and administrative expenses.

BSX Stock’s Estimate Trend

The Zacks Consensus Estimate for 2025 earnings per share has remained unchanged at $2.98 in the past 30 days.

The Zacks Consensus Estimate for 2025 revenues is pegged at $19.84 billion, indicating an 18.5% rise from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are GE HealthCare Technologies (GEHC - Free Report) , Masimo (MASI - Free Report) and Phibro Animal Health (PAHC - Free Report) .

GE HealthCare has an earnings yield of 5.8% compared with the industry’s 0.2%. Shares of the company have surged 76.5% compared with the industry’s 3.4% growth. GEHC’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 12.5%.

GEHC carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masimo, currently carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 12.5% compared with the industry’s 9.9%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 9.17%. MASI’s shares have rallied 18.9% against the industry’s 15.4% decline in the past year.

Phibro, currently carrying a Zacks Rank #2, has an estimated earnings growth rate of 17.2% for fiscal 2026 compared with the S&P 500 composite’s 10.9%. Shares of the company have rallied 101.1% compared with the industry’s 3% growth. PAHC’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%.

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