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Globe and Mail
32 minutes ago
- Globe and Mail
ISRG vs BSX: Which Medical Device Stock Has More Room to Run?
In a healthcare landscape increasingly shaped by technology, two names that stand out for their innovation and long-term potential are Intuitive Surgical ISRG and Boston Scientific BSX. Both companies are at the forefront of minimally invasive procedures — Intuitive as the undisputed leader in robotic-assisted surgery, and Boston Scientific as a powerhouse in interventional medical devices. With growing demand for advanced surgical solutions and aging global populations driving healthcare needs, investors are eyeing these med-tech giants as attractive long-term plays. But, which stock offers more compelling upside right now? Let's break down the fundamentals, growth trajectories, and market positions of ISRG and BSX to find out which one deserves a place in your portfolio. ISRG & BSX: Price Performance Intuitive Surgical represents a high-growth, high-premium pure play on robotic-assisted surgery. Its exceptional performance and growth provide compelling upside, but investors must accept margin compression and valuation risk in the short-to-medium term. Boston Scientific offers broader exposure to medical device innovation, with reliable growth driven by cardiovascular and interventional segments. It trades at a more moderate valuation and may appeal to investors seeking growth with less volatility. The year-to-date price performance of Intuitive Surgical has not been impressive, likely due to tariff concerns and rising competition from Chinese robotic device makers. However, BSX has outperformed ISRG likely due to its diversified business as well as strong U.S. demand. Shares of ISRG have lost 1.9% year to date, while those of BSX have gained 13.9%. Market Position & Core Offerings Intuitive Surgical dominates the surgical robotics niche with its flagship da???Vinci system, which continues to gain traction globally — 367 new units placed in the first quarter of 2025 alone, leading to a 17% year-over-year increase in procedures. Boston Scientific, by contrast, operates across a broader landscape of interventional medical devices, from cardiovascular to neuromodulation. Its success with Farapulse pulsed field ablation and strong cardiovascular sales (+26% in first-quarter 2025) highlight its diversified growth drivers. Growth & Performance ISRG delivered robust first-quarter 2025 results: revenues grew 19% to $2.25 billion, adjusted net income rose 22% to $767.5 million, and adjusted EPS grew 21% to $1.81. Its projected procedure growth remains strong at 15-17% for the year, though margins may be pressured by tariffs. BSX also posted solid first-quarter 2025 earnings, with adjusted EPS of $0.75 and sales worth $4.66 billion, both beating expectations on the back of cardiovascular and medical-surgical divisions. For the second quarter of 2025, revenues are expected to grow by double digits, driven by PFA and other interventions. Estimates Comparison for ISRG & BSX The Zacks Consensus Estimate for ISRG's fiscal 2025 sales and EPS implies a year-over-year improvement of 15.6% and 6.8%, respectively. EPS estimates for 2025 and 2026 have trended southward over the past 60 days. ISRG Estimate Movement The Zacks Consensus Estimate for Boston Scientific's 2025 sales and EPS implies a year-over-year improvement of 16.4% and 15.9%, respectively. Moreover, EPS estimates for 2025 and 2026 have improved over the past 60 days. BSX Estimate Movement Cash & Cash Flow Intuitive Surgical maintains an exceptionally strong balance sheet, with $4.51 billion in cash and no debt as of the first quarter of 2025. The company generated free cash flow of around $465 million and operating cash flow of $582 million, driven by continued growth in da Vinci system procedures and high-margin recurring revenues from instruments and accessories. Boston Scientific, operates with a more leveraged profile. The company reported $725 million in cash and $11.31 billion in total debt, with a debt-to-equity ratio of nearly 50%. Despite this, BSX maintains strong cash generation, posting $541 million in operating cash flow and $354 million in free cash flow for the first quarter of 2025 alone. Its diversified product base, especially in cardiovascular and electrophysiology, supports ongoing growth and debt service. Risks & Operational Challenges ISRG is exposed to geopolitical and trade-related tariff risks — especially a 125% tariff on Chinese exports — which have led to margin revisions for 2025. Mitigation efforts include supply-chain adjustments and pricing flexibility. BSX contends with regulatory and legal exposures (notably from past medical-device recalls and mesh product lawsuits), but its diversified supply chain and global footprint help buffer macroeconomic pressures. ISRG or BSX: Which Is a Better Bet? For investors focused on explosive, category-leading growth in surgical robotics, ISRG may still be the superior choice. But those who prefer balanced exposure across med-tech segments with a steadier valuation profile might consider BSX as a more diversified, resilient option. Intuitive Surgical stands out for its pristine balance sheet, zero debt, and strong free cash flow, making it an appealing choice for investors prioritizing financial stability and growth. Boston Scientific's leveraged balance sheet is offset by a diversified product base and solid, consistent cash generation, positioning it as a resilient and innovative med-tech player for investors comfortable with moderate financial risk. Both companies currently carry a Zacks Rank #3 (Hold). However, if we go by the Zacks Style Score, BSX seems to be a better bet compared to ISRG. While ISRG has a Zacks Style Score of 'D', BSX's score is 'C', reflecting better growth potential. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
CTV News
36 minutes ago
- CTV News
Amazon CEO Jassy says AI will reduce its corporate workforce in the next few years
Andy Jassy, Amazon president and CEO, attends the premiere of "The Lord of the Rings: The Rings of Power" at The Culver Studios on Monday, Aug. 15, 2022, in Culver City, Calif parts of its business, shuttering stores and slashing 29,000 jobs in an effort to reduce costs. (Photo by Jordan Strauss/Invision/AP, File) Amazon CEO Andy Jassy anticipates generative artificial intelligence will reduce its corporate workforce in the next few years as the online giant begins to increase its usage of the technology. 'We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,' Jassy said in a message to employees. 'It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.' The executive said that Amazon has more than 1,000 generative AI services and applications in progress or built, but that figure is a 'small fraction' of what it plans to build. Jassy encouraged employees to get on board with the e-commerce company's AI plans. 'As we go through this transformation together, be curious about AI, educate yourself, attend workshops and take trainings, use and experiment with AI whenever you can, participate in your team's brainstorms to figure out how to invent for our customers more quickly and expansively, and how to get more done with scrappier teams,' he said. Earlier this month Amazon announced that it was planning to invest $10 billion toward building a campus in North Carolina to expand its cloud computing and artificial intelligence infrastructure. Since 2024 started, Amazon has committed to about $10 billion apiece to data center projects in Mississippi, Indiana, Ohio and North Carolina as it ramps up its infrastructure to compete with other tech giants to meet growing demand for artificial intelligence products. The rapid growth of cloud computing and artificial intelligence has meanwhile fueled demand for energy-hungry data centers that need power to run servers, storage systems, networking equipment and cooling systems. Amazon said earlier this month that it will spend $20 billion on two data center complexes in Pennsylvania. In March Amazon began testing artificial intelligence-aided dubbing for select movies and shows offered on its Prime streaming service. A month earlier, the company rolled out a generative-AI infused Alexa. Amazon has also invested more heavily in AI. In November the company said that it was investing an additional $4 billion in the artificial intelligence startup Anthropic. Two months earlier chipmaker Intel said that its foundry business would make some custom artificial intelligence chips for Amazon Web Services, which is Amazon's cloud computing unit and a main driver of its artificial intelligence ambitions. Michelle Chapman, The Associated Press
Globe and Mail
44 minutes ago
- Globe and Mail
A Truth Social Bitcoin ETF Could Be Coming This Year. Here's What That Might Mean for Trump Media Stock.
One way companies can try and drum up interest in their businesses is by getting involved with cryptocurrencies, especially given how hot Bitcoin (CRYPTO: BTC) has been this year. Holding Bitcoin or simply being bullish on the digital asset can attract growth investors who think alike. Trump Media and Technology Group (NASDAQ: DJT) is a great example of a company that looks to be trying to benefit from crypto's growing popularity. This month it made multiple announcements related to launching exchange-traded funds (ETFs) that will invest in popular digital currencies. And that's on top of earlier plans to stockpile Bitcoin. What does this all mean for investors, and can this make Trump Media a more attractive buy, as it potentially benefits from Bitcoin's rising value? Or will it simply add more risk and volatility? The Truth Social Bitcoin ETF could be coming soon On June 5, Trump Media announced a filing with the Securities and Exchange Commission (SEC) to launch an ETF that will hold Bitcoin. Called the Truth Social Bitcoin ETF, it is currently pending approval, with the expectation that it will launch sometime this year. And on Monday, it announced plans for a new fund which will invest in both Bitcoin and Ethereum. It will be called the Truth Social Bitcoin & Ethereum ETF. This comes after the company announced just last month its intent to raise $2.4 billion as part of a plan to become one of the largest corporate holders of Bitcoin. Holding Bitcoin and crypto as a whole appears to be part of a broader long-term strategy for Trump Media, potentially both as a way to grow and diversify its operations and also to attract a wider range of investors. What this could mean for Trump Media The launch of multiple crypto-focused ETFs could generate a lot of interest in Trump Media stock, possibly making it more of a compelling option for crypto investors. However, with multiple crypto ETFs to choose from, it's questionable how much interest the funds may attract from investors, and a lot will depend on how competitive the fees are. Unfortunately, this isn't likely going to result in a huge improvement in the company's financials. High fees would be necessary to generate strong margins, and that would likely end up dissuading investors in the process. The biggest problem for Trump Media is that while it has been expanding into different areas, including streaming and financial services, this remains a highly unprofitable, cash-burning business. In the trailing 12 months, Trump Media incurred losses totaling $105 million on revenue of just $3.7 million. This crypto strategy could make Trump Media stock a more volatile and speculative investment overall. It has the potential to rise along with the general bullishness surrounding Bitcoin and the crypto markets as a whole, but based on its own fundamentals, it's not likely going to attract many growth investors. Should you invest in Trump Media stock? Trump Media is clearly trying to get deeper into crypto, and it may be little wonder why, given how well Bitcoin has performed this year, reaching record levels. But simply having crypto ETFs and stockpiling Bitcoin doesn't mean that will lead to sustainable, long-term returns for investors. Unless the company's financials show that there is a strong underlying business here to invest in, investors should tread very carefully with this stock, as it comes with high risk. This isn't a stock that's going to be suitable for the vast majority of investors as its poor financials suggest frequent stock offerings could be inevitable, and a heavy exposure to crypto may add to its volatility in the long run. Should you invest $1,000 in Trump Media & Technology Group right now? Before you buy stock in Trump Media & Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Trump Media & Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor 's total average return is791% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
