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Boston Scientific Corporation (BSX), a Massachusetts-based company with a market cap of $123.1 billion, is a leader in the medical devices sector. Specializing in interventional medical specialties, it designs, manufactures, and distributes a broad range of products worldwide across cardiovascular, neuro, rhythm, and MedSurg specialties.
Shares of the leading medical device company have outperformed the broader market over the past 52 weeks. BSX has gained 61.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 35.2%. In 2024 alone, shares of BSX are up 44.7%, compared to SPX's 20.1% gains on a YTD basis.
Zooming in further, BSX also outpaced the ishares U.S. Medical Devices ETF’s (IHI) 29% gains over the past 52 weeks. Moreover, BSX stock's double-digit returns on a YTD basis outshines the exchange-traded fund’s 9.6% gains over the same time frame.
Boston Scientific has outperformed the market over the past year thanks to its innovative product pipeline, strategic acquisitions like Farapulse, and strong clinical data that support product effectiveness. Additionally, the company’s solid operational execution, global expansion, and focus on category leadership have driven consistent growth and increased market share, fueling investor confidence.
On Oct. 23, Boston Scientific shares fell marginally after saying during an earnings call that it is pausing a trial of its Farapulse ablation system due to “a few unanticipated observations.”
On the same day, BSX announced its fiscal third-quarter earnings, exceeding the market’s expectations. For the current quarter ending in December, Boston Scientific expects its EPS to range from 64 cents to 66 cents.
For the current fiscal year, ending in December, analysts expect BSX to report an EPS rise of 20% to $2.46 on a diluted basis. The company has consistently surpassed earnings expectations, beating the consensus estimate in each of the last four quarters.
The consensus view on the stock is overall highly bullish. Among the 28 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 23 “Strong Buys,” two “Moderate Buys,” and three “Holds.”
This configuration has been consistent over the past months.
On Oct. 24. Mizuho Financial Group, Inc. (MFG) raised Boston Scientific's price target from $100 to $110 and maintained an “Outperform” rating following the Q3 report. Despite a setback in the AVANT Guard trial, which wasn’t due to a mortality event or FDA action, global Farapulse growth remains strong. The firm views the recent share pullback as a "compelling" buying opportunity.
The mean price target of $97.66 represents a premium of just 16.8% to BSX's current levels. The Street-high target of $110 indicates a potential upside of 31.5% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
