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Boston Scientific (BSX) Banks on Global Expansion, Innovation
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Boston Scientific (BSX - Free Report) is gaining traction in the emerging markets. New regulatory approvals bode well for the company’s growth. The stock carries a Zacks Rank #2 (Buy) currently.
Boston Scientific is consistently gaining market share within its MedSurg segment. The Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of gastrointestinal and pulmonary treatment options. In the first quarter of 2024, the company reported strong organic growth contribution from single-use imaging and AXIOS technologies. Within Urology, Boston Scientific continues to expand its market share globally. In the first quarter, Rezum performed well across all regions and secured reimbursement status in France. Boston Scientific currently looks forward to completing the previously announced acquisition of Axonics in the second half of 2024.
Within Neuromodulation, Boston Scientific’s pain business is consistently gaining traction, banking on strength in Spinal cord stimulation (SCS), driven by its innovative Alpha portfolio with fast therapy in a cognitive suite of digital tools supporting patient activation. Among the recent developments, the company received FDA approval for an expanded indication of the WaveWriter SCS Systems for people with non-surgical back pain.
Boston Scientific continues to successfully expand operations across different geographies outside the United States. In 2023, 41% of the company’s consolidated revenues came from international regions.
Within its international regions, the company is putting additional efforts to expand its foothold in emerging markets (which are defined as all countries except the United States, Western and Central Europe, Japan, Australia, New Zealand and Canada), which hold strong growth potential based on their economic conditions, healthcare sectors and global capabilities. In the last reported first quarter of 2024, despite geopolitical weaknesses, emerging markets registered sturdy growth, primarily banking on continued broad-based momentum across the company’s business and investment in this region.
In Europe, the Middle East and Africa (EMEA), too, Boston Scientific is successfully expanding its base banking on its diverse portfolio, new launches and commercial execution with healthy underlying market demand. In the first quarter, EMEA sales grew 13.3% year over year on an operational basis, with robust performance in Electrophysiology as well as double-digit growth in Endoscopy, Urology and Peripheral Interventions businesses.
On the flip side, the industry-wide trend of difficult macroeconomic conditions in the form of geopolitical pressure leading to disruptions in economic activity, global supply chains and labor markets is creating a challenging business environment for Boston Scientific. International conflicts, including the Russia-Ukraine war and tension between China and Taiwan, have increased cybersecurity risks on a global basis. Further, volatile financial market dynamics and significant volatility in price and availability of goods and services are putting pressure on Boston Scientific’s profitability. With the sustained macroeconomic pressures, the company may struggle to keep in check its operating expenses.
In the first quarter of 2024, the company reported a 16.3% rise in the cost of products sold, leading to a 67-basis point contraction in gross margin. Further, there was a 12.3% rise in selling, general and administrative expenses.
Elevance Health has an estimated long-term growth rate of 12.2%. ELV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.8%.
Elevance Health’s shares have rallied 22.1% compared with the industry’s 5.5% rise in the past year.
Hologic has an estimated long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.94%.
Hologic’s shares have risen 0.3% year to date compared with the industry’s 4.7% growth.
Universal Health Services has an estimated earnings growth rate of 30.5% for 2024.
UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.12%.
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Boston Scientific (BSX) Banks on Global Expansion, Innovation
Boston Scientific (BSX - Free Report) is gaining traction in the emerging markets. New regulatory approvals bode well for the company’s growth. The stock carries a Zacks Rank #2 (Buy) currently.
Boston Scientific is consistently gaining market share within its MedSurg segment. The Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of gastrointestinal and pulmonary treatment options. In the first quarter of 2024, the company reported strong organic growth contribution from single-use imaging and AXIOS technologies. Within Urology, Boston Scientific continues to expand its market share globally. In the first quarter, Rezum performed well across all regions and secured reimbursement status in France. Boston Scientific currently looks forward to completing the previously announced acquisition of Axonics in the second half of 2024.
Within Neuromodulation, Boston Scientific’s pain business is consistently gaining traction, banking on strength in Spinal cord stimulation (SCS), driven by its innovative Alpha portfolio with fast therapy in a cognitive suite of digital tools supporting patient activation. Among the recent developments, the company received FDA approval for an expanded indication of the WaveWriter SCS Systems for people with non-surgical back pain.
Boston Scientific continues to successfully expand operations across different geographies outside the United States. In 2023, 41% of the company’s consolidated revenues came from international regions.
Within its international regions, the company is putting additional efforts to expand its foothold in emerging markets (which are defined as all countries except the United States, Western and Central Europe, Japan, Australia, New Zealand and Canada), which hold strong growth potential based on their economic conditions, healthcare sectors and global capabilities. In the last reported first quarter of 2024, despite geopolitical weaknesses, emerging markets registered sturdy growth, primarily banking on continued broad-based momentum across the company’s business and investment in this region.
Boston Scientific Corporation Price
Boston Scientific Corporation price | Boston Scientific Corporation Quote
In Europe, the Middle East and Africa (EMEA), too, Boston Scientific is successfully expanding its base banking on its diverse portfolio, new launches and commercial execution with healthy underlying market demand. In the first quarter, EMEA sales grew 13.3% year over year on an operational basis, with robust performance in Electrophysiology as well as double-digit growth in Endoscopy, Urology and Peripheral Interventions businesses.
On the flip side, the industry-wide trend of difficult macroeconomic conditions in the form of geopolitical pressure leading to disruptions in economic activity, global supply chains and labor markets is creating a challenging business environment for Boston Scientific. International conflicts, including the Russia-Ukraine war and tension between China and Taiwan, have increased cybersecurity risks on a global basis. Further, volatile financial market dynamics and significant volatility in price and availability of goods and services are putting pressure on Boston Scientific’s profitability. With the sustained macroeconomic pressures, the company may struggle to keep in check its operating expenses.
In the first quarter of 2024, the company reported a 16.3% rise in the cost of products sold, leading to a 67-basis point contraction in gross margin. Further, there was a 12.3% rise in selling, general and administrative expenses.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Elevance Health, Inc. (ELV - Free Report) , Hologic (HOLX - Free Report) and Universal Health Services (UHS - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health has an estimated long-term growth rate of 12.2%. ELV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.8%.
Elevance Health’s shares have rallied 22.1% compared with the industry’s 5.5% rise in the past year.
Hologic has an estimated long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.94%.
Hologic’s shares have risen 0.3% year to date compared with the industry’s 4.7% growth.
Universal Health Services has an estimated earnings growth rate of 30.5% for 2024.
UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.12%.