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Is BSX Worth Buying Now as Low Valuation Meets Weak Earnings Growth?
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Key Takeaways
Boston Scientific trades at a forward P/E of 14.06, well below its five-year median of 25.08.
BSX cut adjusted EPS outlook to $3.16-$3.18 as earnings momentum and core franchises weaken.
BSX's Neuromodulation and Interventional Cardiology remain growth drivers, but EP may improve in 2028.
Boston Scientific Corp. (BSX - Free Report) trades at a steep discount to its recent history, but the lower multiple comes as earnings expectations weaken and several core franchises lose momentum.
The valuation may look attractive after the stock’s sharp decline, yet management expects 2027 to be the trough of the current cycle, with a more meaningful performance improvement targeted for 2028.
BSX Valuation Looks Discounted on Earnings
Boston Scientific trades at a forward 12-month price-to-earnings ratio of 14.06, well below its five-year median of 25.08. Its current multiple also trails the Zacks sub-industry at 17.20, the Zacks Medical sector at 21.85 and the S&P 500 at 18.51.
Image Source: Zacks Investment Research
That gap creates a clear value argument, but the discount reflects a weaker growth outlook. Shares have fallen 55.1% over the past year, while the company’s near-term earnings profile has deteriorated.
Image Source: Zacks Investment Research
Boston Scientific Earnings Momentum Is Weak
Management cut its full-year 2026 adjusted earnings guidance to $3.16-$3.18 per share from $3.28-$3.32. Third-quarter adjusted earnings fell 2.7% year over year to 73 cents per share, with the cybersecurity incident reducing adjusted earnings by about 7 cents.
The Zacks Consensus Estimate for 2027 earnings is $3.13 per share. The current fiscal-year earnings estimate has also declined 2.6% over the past four weeks, reinforcing the lack of near-term estimate momentum.
BSX Faces Several Execution Risks Through 2027
WATCHMAN sales declined 5.9% organically in the third quarter, while electrophysiology sales fell 5.3%. Management expects continued electrophysiology share erosion until FARAWAVE Ultra arrives in early 2028, while pricing pressure in China remains another drag.
Competition is also intensifying. Abbott Laboratories (ABT - Free Report) said its third-quarter 2026 electrophysiology sales rose 15.5% organically as its Volt pulsed field ablation system contributed to growth. Medtronic plc (MDT - Free Report) continues to expand its cardiac ablation portfolio around the Affera and PulseSelect platforms.
The pending Penumbra acquisition and Boston Scientific’s $1.5 billion MiRus investment broaden its strategic reach, but they also increase financing and execution demands during a period of softer earnings visibility.
Boston Scientific Retains Valuable Growth Assets
Neuromodulation remains a bright spot, with third-quarter organic sales growth of 13%. Interventional Cardiology also grew 19%, supported by imaging and drug-eluting technologies, while EMEA operational sales advanced 6.1%.
The pipeline provides a path to better growth, though the timing is back-end loaded. Boston Scientific expects new cardiac rhythm management launches during 2027, two-dimensional intracardiac echocardiography in the second half of 2027 and FARAWAVE Ultra in early 2028. Management expects Electrophysiology performance to improve meaningfully in 2028.
BSX Ratings Support a Wait-and-Watch Stance
The lower valuation does not fully offset Boston Scientific’s weak estimate trend and execution risks. The current setup favors patience until earnings visibility and competitive trends improve.
BSX carries a Zacks Rank #5 (Strong Sell), reflecting unfavorable earnings estimate revisions. It has a Value Score of C, Growth Score of C, Momentum Score of B and VGM Score of C. The Style Scores are designed to complement the Zacks Rank, and the combination does not provide the favorable Rank-plus-Style profile generally associated with stronger near-term prospects.
Boston Scientific still has valuable franchises and a sizable innovation pipeline. For now, however, the earnings reset, delayed catalysts and competitive pressure make the valuation discount less persuasive on its own.
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Image: Bigstock
Is BSX Worth Buying Now as Low Valuation Meets Weak Earnings Growth?
Key Takeaways
Boston Scientific Corp. (BSX - Free Report) trades at a steep discount to its recent history, but the lower multiple comes as earnings expectations weaken and several core franchises lose momentum.
The valuation may look attractive after the stock’s sharp decline, yet management expects 2027 to be the trough of the current cycle, with a more meaningful performance improvement targeted for 2028.
BSX Valuation Looks Discounted on Earnings
Boston Scientific trades at a forward 12-month price-to-earnings ratio of 14.06, well below its five-year median of 25.08. Its current multiple also trails the Zacks sub-industry at 17.20, the Zacks Medical sector at 21.85 and the S&P 500 at 18.51.
Image Source: Zacks Investment Research
That gap creates a clear value argument, but the discount reflects a weaker growth outlook. Shares have fallen 55.1% over the past year, while the company’s near-term earnings profile has deteriorated.
Image Source: Zacks Investment Research
Boston Scientific Earnings Momentum Is Weak
Management cut its full-year 2026 adjusted earnings guidance to $3.16-$3.18 per share from $3.28-$3.32. Third-quarter adjusted earnings fell 2.7% year over year to 73 cents per share, with the cybersecurity incident reducing adjusted earnings by about 7 cents.
The Zacks Consensus Estimate for 2027 earnings is $3.13 per share. The current fiscal-year earnings estimate has also declined 2.6% over the past four weeks, reinforcing the lack of near-term estimate momentum.
BSX Faces Several Execution Risks Through 2027
WATCHMAN sales declined 5.9% organically in the third quarter, while electrophysiology sales fell 5.3%. Management expects continued electrophysiology share erosion until FARAWAVE Ultra arrives in early 2028, while pricing pressure in China remains another drag.
Competition is also intensifying. Abbott Laboratories (ABT - Free Report) said its third-quarter 2026 electrophysiology sales rose 15.5% organically as its Volt pulsed field ablation system contributed to growth. Medtronic plc (MDT - Free Report) continues to expand its cardiac ablation portfolio around the Affera and PulseSelect platforms.
The pending Penumbra acquisition and Boston Scientific’s $1.5 billion MiRus investment broaden its strategic reach, but they also increase financing and execution demands during a period of softer earnings visibility.
Boston Scientific Retains Valuable Growth Assets
Neuromodulation remains a bright spot, with third-quarter organic sales growth of 13%. Interventional Cardiology also grew 19%, supported by imaging and drug-eluting technologies, while EMEA operational sales advanced 6.1%.
The pipeline provides a path to better growth, though the timing is back-end loaded. Boston Scientific expects new cardiac rhythm management launches during 2027, two-dimensional intracardiac echocardiography in the second half of 2027 and FARAWAVE Ultra in early 2028. Management expects Electrophysiology performance to improve meaningfully in 2028.
BSX Ratings Support a Wait-and-Watch Stance
The lower valuation does not fully offset Boston Scientific’s weak estimate trend and execution risks. The current setup favors patience until earnings visibility and competitive trends improve.
BSX carries a Zacks Rank #5 (Strong Sell), reflecting unfavorable earnings estimate revisions. It has a Value Score of C, Growth Score of C, Momentum Score of B and VGM Score of C. The Style Scores are designed to complement the Zacks Rank, and the combination does not provide the favorable Rank-plus-Style profile generally associated with stronger near-term prospects.
Boston Scientific still has valuable franchises and a sizable innovation pipeline. For now, however, the earnings reset, delayed catalysts and competitive pressure make the valuation discount less persuasive on its own.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.