Boston Scientific (BSX) Beats Market Returns: Some Facts to Consider

Boston Scientific (BSX) closed at $78.02 in the latest trading session, marking a +0.42% gain from the previous day. This increase outpaced the S&P 500’s daily gain of 0.28%. On the other hand, the Dow Jones Industrial Average rose 0.53% and the tech-heavy Nasdaq advanced 0.4%.

Shares of the medical device maker have risen 1.21% over the past month, leading the Medical sector’s gain of 0.79% and lagging the S&P 500’s gain of 3.78%.

Analysts and investors will be closely watching Boston Scientific’s performance when it releases its financial results. The company’s earnings report is expected to be released on July 24, 2024. On that day, Boston Scientific is expected to report earnings of $0.58 per share, which would represent year-over-year growth of 9.43%. Meanwhile, the latest consensus estimate is for revenue of $4.02 billion, which would indicate an increase of 11.68% from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.32 per share and revenue of $15.99 billion, changes of +13.17% and +12.3%, respectively, from the prior year.

It is also important to note recent changes to analyst estimates for Boston Scientific. Recent revisions tend to reflect recent short-term business trends. Therefore, positive changes to estimates signify analyst optimism about the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with stock price movements in the near future. To leverage this data, we created the Zacks Rank, a proprietary model that incorporates these estimate changes and delivers a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of exceeding expectations, with #1 ranked stocks generating an average annual return of +25% since 1988. Over the past month, there has been no change in the Zacks Consensus EPS estimate. Currently, Boston Scientific holds a Zacks Rank of #3 (Hold).

In terms of valuation, Boston Scientific is currently trading at a forward P/E ratio of 33.47. This represents a premium to its industry’s average forward P/E ratio of 22.18.

We can also observe that BSX currently sports a PEG ratio of 2.67. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth rate. The Medical – Products held an average PEG ratio of 2.27 at yesterday’s closing price.

The Medical Products industry is part of the Medical sector. This sector currently has a Zacks Rank of 163, which puts it in the bottom 36% of all 250+ sectors.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to count on Zacks.com to monitor all of these stock-impacting metrics, and more, in the coming trading sessions.

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