Is it Worth Adding Boston Scientific Stock to Your Portfolio Now?
In the past year, this Zacks Rank #2 (Buy) company's shares have rallied 33.6% compared with the industry and the S&P 500 composite's growth of 11.7% and 10.1%, respectively.
The renowned manufacturer of medical devices and products has a market capitalization of $153.61 billion. BSX beat on earnings in each of the trailing four quarters, delivering an average surprise of 8.79%.
Let us delve deeper.
Upsides for BSX Stock
MedSurg's Impressive Market Share Gain: Boston Scientific is consistently gaining market share within its MedSurg segment. The Endoscopy business within MedSurg is gaining from strong growth in endoluminal surgery and single-use imaging franchises, along with sustained growth of the AXIOS platform, where the company is reinvesting to drive expanded indications.
Within Urology, Boston Scientific continues to expand market share globally. The company's Stone management and prostheticurology franchises are growing well, led by key launches with the TENACIO pump for the AMS 700 and continued success with the expanding LithoVue portfolio. Within Neuromodulation, Boston Scientific's pain and brain businesses are gaining traction. Within deep brain stimulation, the company expects to see improved growth in 2025, backed by the recent FDA and CE Mark approvals of the Cartesia X and HX leads.
WATCHMAN, a Long-Term Growth Driver: Boston Scientific's structural heart programs are fast building momentum on the back of strong performance of the WATCHMAN left atrial appendage closure device. WATCHMAN is the first device to offer a non-pharmacologic alternative to oral anti-coagulants that has been studied in a randomized clinical trial and is the leading device in percutaneous LAAC globally. The next generation WATCHMAN FLX and FLX Pro are capturing the global market. In the first quarter of 2025, WATCHMAN sales increased 24% year over year, with a strong contribution from the rise in concomitant procedures enabled by the new DRG, which became effective in October.
Impressive Value-Adding Acquisitions: Boston Scientific's recent acquisitions have added numerous products with immense potential. The company's recently completed strategic buyouts include Bolt Medical. Earlier, BSX had acquired Cortex, an advanced AF mapping solution. The company also acquired Silk Road to broaden in the field of vascular medicine. Boston Scientific also completed the acquisition of Axonics in the fourth quarter of 2024. Sales from closed acquisitions contributed 400 basis points in the first quarter, resulting in 18.2% organic revenue growth for Boston Scientific.
The company is currently looking forward to close the acquisitions of SoniVie and Intera Oncology.
Downside for BSX Stock
Exposure to Currency Movement: With Boston Scientific recording 40% of its sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the past few quarters, as in the case of other important MedTech players. For 2025, the company expects a 50-basis point headwind from foreign exchange on revenues.
BSX Stock's Estimate Trend
The Zacks Consensus Estimate for 2025 earnings per share has remained unchanged at $2.91 in the past 30 days.
The Zacks Consensus Estimate for 2025 revenues is pegged at $19.50 billion, indicating a 16.4% rise from the year-ago reported number.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Align Technology ALGN, Abbott Laboratories ABT and Cencora COR.
Align Technology has an estimated long-term earnings growth rate of 11.2% compared with the industry's 9.9%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.4%. Its shares have lost 27.7% compared with the industry's 3.3% decline in the past year.
ALGN carries a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Abbott, currently carrying a Zacks Rank #2, has an earnings yield of 3.8% compared with the industry's 0.6%. Shares of the company have surged 129.7% compared with the industry's 35.9% gain. ABT's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 1.6%.
Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.4% compared with the industry's 3.8%. Shares of the company have rallied 25.9% against the industry's 14.4% decline. COR's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6%.
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