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New Buyouts Aid Boston Scientific Amid Coronavirus Crisis
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On Mar 27, we issued an updated research report on Boston Scientific Corporation (BSX - Free Report) . The company’s recent acquisitions added various products (though many are under development) with immense potential to its portfolio. The stock currently carries a Zacks Rank #3 (Hold).
Boston Scientific’s operational growth outside of the United States is strong in both Cardiac Rhythm Management (CRM) and EP (Electrophysiology). In the last reported quarter, Interventional Cardiology, Urology, Pelvic Health and Endoscopy all grew at or above the market rate. Within structural heart, the combined strength of WATCHMAN, ACURATE, LOTUS Edge, SENTINEL and Millipede has positioned the company well, to reach its structural heart revenue guidance for 2020.
The company expects to introduce approximately 75 products by 2022. According to the company, by 2022, these product launches will help 80% of its sales to reach high- and moderate-growth markets. In terms of geographic growth, Boston Scientific is working on widening its footprint in the emerging markets, along with increasing patient access to care and supporting steady broad-based progress, through physician training capabilities, channel explosion and local partnerships.
This apart, the company’s recent acquisitions like BTG, Millipede, Claret Medical, VENITI and Augmenix, all target high-growth markets, enhance the company’s category leadership strategy, leverage existing local capabilities and further enhance its short- and long-term growth profiles.
Meanwhile, the declining worldwide pacemaker sales are straining the company’s top line. Boston Scientific continues to incur escalating operating cost on its constant involvement in handling serious legal problems. Other headwinds plaguing the company are its exposure to the currency fluctuations and a stiff competitive landscape. Further, the current economic crisis due to the coronavirus outbreak is massively causing share-price depreciation. The global supply-chain disruption due to this pandemic is significantly eroding the company's revenues as well.
Over the past six months, shares of Boston Scientific have underperformed the industry it belongs to. The stock has lost 22.8% compared with the 22.2% decline of the industry.
Key Picks
Some better-ranked stocks from the broader medical space are ResMed Inc. (RMD - Free Report) , Medtronic plc (MDT - Free Report) and Hill-Rom Holdings, Inc .
Medtronic’s long-term earnings growth rate is estimated at 7.4%. The company presently carries a Zacks Rank of 2.
Hill-Rom’s long-term earnings growth rate is projected at 11.1%. It currently carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
New Buyouts Aid Boston Scientific Amid Coronavirus Crisis
On Mar 27, we issued an updated research report on Boston Scientific Corporation (BSX - Free Report) . The company’s recent acquisitions added various products (though many are under development) with immense potential to its portfolio. The stock currently carries a Zacks Rank #3 (Hold).
Boston Scientific’s operational growth outside of the United States is strong in both Cardiac Rhythm Management (CRM) and EP (Electrophysiology). In the last reported quarter, Interventional Cardiology, Urology, Pelvic Health and Endoscopy all grew at or above the market rate. Within structural heart, the combined strength of WATCHMAN, ACURATE, LOTUS Edge, SENTINEL and Millipede has positioned the company well, to reach its structural heart revenue guidance for 2020.
The company expects to introduce approximately 75 products by 2022. According to the company, by 2022, these product launches will help 80% of its sales to reach high- and moderate-growth markets. In terms of geographic growth, Boston Scientific is working on widening its footprint in the emerging markets, along with increasing patient access to care and supporting steady broad-based progress, through physician training capabilities, channel explosion and local partnerships.
This apart, the company’s recent acquisitions like BTG, Millipede, Claret Medical, VENITI and Augmenix, all target high-growth markets, enhance the company’s category leadership strategy, leverage existing local capabilities and further enhance its short- and long-term growth profiles.
Boston Scientific Corporation Price
Boston Scientific Corporation price | Boston Scientific Corporation Quote
Meanwhile, the declining worldwide pacemaker sales are straining the company’s top line. Boston Scientific continues to incur escalating operating cost on its constant involvement in handling serious legal problems. Other headwinds plaguing the company are its exposure to the currency fluctuations and a stiff competitive landscape. Further, the current economic crisis due to the coronavirus outbreak is massively causing share-price depreciation. The global supply-chain disruption due to this pandemic is significantly eroding the company's revenues as well.
Over the past six months, shares of Boston Scientific have underperformed the industry it belongs to. The stock has lost 22.8% compared with the 22.2% decline of the industry.
Key Picks
Some better-ranked stocks from the broader medical space are ResMed Inc. (RMD - Free Report) , Medtronic plc (MDT - Free Report) and Hill-Rom Holdings, Inc .
ResMed has a projected long-term earnings growth rate of 12%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Medtronic’s long-term earnings growth rate is estimated at 7.4%. The company presently carries a Zacks Rank of 2.
Hill-Rom’s long-term earnings growth rate is projected at 11.1%. It currently carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>