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Should You Hold On To BSX Stock Despite Its Premium Valuation?
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Key Takeaways
BSX trades at a premium P/E versus peers and the sector, reflecting a stretched valuation profile.
BSX's WATCHMAN sales jumped 35% in Q3 2025, aided by growing U.S. concomitant use.
Boston Scientific's EP business surged 63% in Q3 2025, driven by FARAPULSE adoption.
Boston Scientific (BSX - Free Report) has a stretched valuation, reflected in its Value Score of C. Shares of the company are trading at a forward five-year price/earnings (P/E) of 27.77X, above its median as well as the 20.01X industry average. The stock also appears expensive when compared to the broader Medical sector’s P/E of 21.03X. In contrast, key rivals, Abbott (ABT - Free Report) and Medtronic (MDT - Free Report) , are trading at a discount, with their five-year P/E of 22.15X and 20.01X, respectively.
BSX’s Forward 5 Year P/E
Image Source: Zacks Investment Research
Further, Boston Scientific’s performance has been mixed over the past year, underperforming both ABT and MDT, while still holding up better than the industry and the sector.
BSX 1-Year Stock Performance
Image Source: Zacks Investment Research
Risks Weighing on BSX
Like several other MedTech players, Boston Scientific operates in a challenging business environment, marked by geopolitical tensions, global supply-chain disruptions and labor-market instability, which could push up its operating expenses. Increased tariff levels can also hurt its profitability, with management expecting a full-year 2025 tariff impact of nearly $100 million. With nearly 40% of sales being generated in the international market, the company also remains highly exposed to adverse currency fluctuations. Additionally, competitive offerings, value-based procurement practices, government-imposed payback provisions, and changes in reimbursement practices and policies on average selling prices for its products could also affect the company.
On a positive note, Boston Scientific’s category leadership strategy across all its business units and expanding into high-growth adjacencies continues to underpin its overall performance. Let’s look at some of the factors at play.
Steady Growth Across MedSurg Businesses
Boston Scientific continues to gain market share across its MedSurg portfolio. Within this, theUrology business has been driving strong sales from the global stone management franchise. The recent European approval for Axonics F15 in Europe, along with a broad innovation cadence, supports management’s expectation of improving Urology growth through 2026.
Endoscopy is seeing robust growth in its anchor products, including AXIOS, MANTIS and OverStitch. Within Neuromodulation, the Intracept procedure for chronic vertebrogenic pain remains a big growth driver. Further, the acquisition of Intera Medical strengthened the interventional oncology portfolio by adding a complementary therapy to treat both primary and metastatic forms of liver cancer.
Through the 2026-2028 long-range plan, Boston Scientific expects to outpace market growth across neuromodulation, urology and endoscopy businesses, which together serve a global market of $20 billion growing nearly 7%. The company is in the early stages of launching Intracept in Europe. Further, the planned acquisition of Nalu Medical will expand the portfolio into a new pain adjacency in peripheral nerve pain, opening an additional growth opportunity.
WATCHMAN Momentum Continues
Boston Scientific’s WATCHMAN remains the leading device in percutaneous Left Atrial Appendage Closure globally. In the third quarter of 2025, WATCHMAN sales grew 35% and surpassed 600,000 patients targeted to date. Growth was supported by accelerated U.S. concomitant uptake and continued penetration into the indicated patients. The next-generation WATCHMAN FLX and FLX Pro are strongly capturing the global market. Following the positive OPTION data, the FDA approved expanded labelling for WATCHMAN, enabling its use as a first-line therapy in post-ablation patients in the United States.
Management expects approximately 25% of the U.S. WATCHMAN procedures to be done concomitantly by the end of 2025. Also, the company began the commercial launch of the WATCHMAN FLX Pro device in China, following the NMPA approval. The company is confident in growing the WATCHMAN market by roughly 20% in the coming years, driven by continued concomitant uptake, the CHAMPION data presentation in the first half of 2026 and the launch of next-generation WATCHMAN in late 2027 or early 2028.
EP Momentum Aids Boston Scientific
Electrophysiology (“EP”) is another one of the company’s fastest-growing businesses, surging 63% in the third quarter of 2025. Boston Scientific continues to drive share gains in the overall EP market, supported by its FARAPULSE Pulsed Field Ablation technology and consistent data publications. U.S. FARAPULSE performance is aided by the ramping adoption of the OPAL HDx mapping system, with one in three FARAPULSE accounts now using the integrated FARAWAVE NAV and OPAL device. Further, FARAPULSE was also approved by the FDA for expanded use in the treatment of drug-refractory, symptomatic persistent atrial fibrillation (AF).
Boston Scientific is investing to outpace the approximately 15% EP market growth expected through 2028 by advancing the ecosystem of innovative solutions across both the AF and non-AF segments. The newest PFA catheter in the EP portfolio, FARAPOINT, received the CE mark last month, supported by Phase II data from the ADVANTAGE AF clinical trial.
Analysts also continue to be bullish on the company’s 2025 and 2026 earnings, as you can see.
Image Source: Zacks Investment Research
Conclusion
Despite its premium valuation, Boston Scientific’s overall strength is evident from its innovative portfolio and consistent execution of its strategy. WATCHMAN and EP are positioned to be long-term growth drivers, while alliances and new product launches are expected to support the company’s growth ambitions for MedSurg. Hence, those already invested in the Zacks Rank #3 (Hold) stock can retain their position, given the positive earnings estimates revisions. Meanwhile, prospective buyers should wait for a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Should You Hold On To BSX Stock Despite Its Premium Valuation?
Key Takeaways
Boston Scientific (BSX - Free Report) has a stretched valuation, reflected in its Value Score of C. Shares of the company are trading at a forward five-year price/earnings (P/E) of 27.77X, above its median as well as the 20.01X industry average. The stock also appears expensive when compared to the broader Medical sector’s P/E of 21.03X. In contrast, key rivals, Abbott (ABT - Free Report) and Medtronic (MDT - Free Report) , are trading at a discount, with their five-year P/E of 22.15X and 20.01X, respectively.
BSX’s Forward 5 Year P/E
Image Source: Zacks Investment Research
Further, Boston Scientific’s performance has been mixed over the past year, underperforming both ABT and MDT, while still holding up better than the industry and the sector.
BSX 1-Year Stock Performance
Image Source: Zacks Investment Research
Risks Weighing on BSX
Like several other MedTech players, Boston Scientific operates in a challenging business environment, marked by geopolitical tensions, global supply-chain disruptions and labor-market instability, which could push up its operating expenses. Increased tariff levels can also hurt its profitability, with management expecting a full-year 2025 tariff impact of nearly $100 million. With nearly 40% of sales being generated in the international market, the company also remains highly exposed to adverse currency fluctuations. Additionally, competitive offerings, value-based procurement practices, government-imposed payback provisions, and changes in reimbursement practices and policies on average selling prices for its products could also affect the company.
On a positive note, Boston Scientific’s category leadership strategy across all its business units and expanding into high-growth adjacencies continues to underpin its overall performance. Let’s look at some of the factors at play.
Steady Growth Across MedSurg Businesses
Boston Scientific continues to gain market share across its MedSurg portfolio. Within this, theUrology business has been driving strong sales from the global stone management franchise. The recent European approval for Axonics F15 in Europe, along with a broad innovation cadence, supports management’s expectation of improving Urology growth through 2026.
Endoscopy is seeing robust growth in its anchor products, including AXIOS, MANTIS and OverStitch. Within Neuromodulation, the Intracept procedure for chronic vertebrogenic pain remains a big growth driver. Further, the acquisition of Intera Medical strengthened the interventional oncology portfolio by adding a complementary therapy to treat both primary and metastatic forms of liver cancer.
Through the 2026-2028 long-range plan, Boston Scientific expects to outpace market growth across neuromodulation, urology and endoscopy businesses, which together serve a global market of $20 billion growing nearly 7%. The company is in the early stages of launching Intracept in Europe. Further, the planned acquisition of Nalu Medical will expand the portfolio into a new pain adjacency in peripheral nerve pain, opening an additional growth opportunity.
WATCHMAN Momentum Continues
Boston Scientific’s WATCHMAN remains the leading device in percutaneous Left Atrial Appendage Closure globally. In the third quarter of 2025, WATCHMAN sales grew 35% and surpassed 600,000 patients targeted to date. Growth was supported by accelerated U.S. concomitant uptake and continued penetration into the indicated patients. The next-generation WATCHMAN FLX and FLX Pro are strongly capturing the global market. Following the positive OPTION data, the FDA approved expanded labelling for WATCHMAN, enabling its use as a first-line therapy in post-ablation patients in the United States.
Management expects approximately 25% of the U.S. WATCHMAN procedures to be done concomitantly by the end of 2025. Also, the company began the commercial launch of the WATCHMAN FLX Pro device in China, following the NMPA approval. The company is confident in growing the WATCHMAN market by roughly 20% in the coming years, driven by continued concomitant uptake, the CHAMPION data presentation in the first half of 2026 and the launch of next-generation WATCHMAN in late 2027 or early 2028.
EP Momentum Aids Boston Scientific
Electrophysiology (“EP”) is another one of the company’s fastest-growing businesses, surging 63% in the third quarter of 2025. Boston Scientific continues to drive share gains in the overall EP market, supported by its FARAPULSE Pulsed Field Ablation technology and consistent data publications. U.S. FARAPULSE performance is aided by the ramping adoption of the OPAL HDx mapping system, with one in three FARAPULSE accounts now using the integrated FARAWAVE NAV and OPAL device. Further, FARAPULSE was also approved by the FDA for expanded use in the treatment of drug-refractory, symptomatic persistent atrial fibrillation (AF).
Boston Scientific is investing to outpace the approximately 15% EP market growth expected through 2028 by advancing the ecosystem of innovative solutions across both the AF and non-AF segments. The newest PFA catheter in the EP portfolio, FARAPOINT, received the CE mark last month, supported by Phase II data from the ADVANTAGE AF clinical trial.
Analysts also continue to be bullish on the company’s 2025 and 2026 earnings, as you can see.
Image Source: Zacks Investment Research
Conclusion
Despite its premium valuation, Boston Scientific’s overall strength is evident from its innovative portfolio and consistent execution of its strategy. WATCHMAN and EP are positioned to be long-term growth drivers, while alliances and new product launches are expected to support the company’s growth ambitions for MedSurg. Hence, those already invested in the Zacks Rank #3 (Hold) stock can retain their position, given the positive earnings estimates revisions. Meanwhile, prospective buyers should wait for a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.