Shares of Boston Scientific, a leader in inventing and selling critical care medical equipment, continue to trade near all-time highs, driven by steady earnings and revenue growth. On Wednesday, Boston Scientific stock got an upgrade to its Relative Strength (RS) Rating, from 78 to 81, passing a milestone along the way.
Boston Scientific Stock Joins Elite Group
An 81 RS Rating means that Boston Scientific stock is in the top 19% of stocks for performance this past year. The market's stock winners often have an RS Rating of at least 80 as they begin their biggest runs.
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Watchlist candidate Boston Scientific stock rose from a 34.98 intraday low on June 16, 2022, amid the bear market, to an all-time high 54.74 on June 22 this year, a 56% surge in just over a year. It consolidated then. Currently, the Boston area-based medical gear maker is working on a flat base with a 54.74 buy point. See if it can break out in heavy trading. On Wednesday, Boston Scientific was down fractionally to 50.35.
Boston Scientific has a strong 87 Earnings Per Share Rating out of 99. Its Composite Rating is a decent 81. One yellow flag is its E Accumulation/Distribution Rating, showing that mutual funds, ETFs and other institutional investors aren't buying much Boston Scientific stock yet. Still, the number of funds holding BSX stock rose from 2,404 in the September-ended quarter to 2,569 in December, 2,720 in March and 2,880 in June, a bullish indicator.
Fundamentals strong
Boston Scientific recorded 20% earnings growth in the latest quarterly report, to 53 cents per share, while sales grew 11% to $3.599 billion.
Boston Scientific stock holds the No. 7 rank among its peers in the 134-stock Medical-Products industry group. Stryker and LeMaitre Vascular are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique Relative Strength Rating tracks market leadership by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes.
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