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Boston Scientific (BSX) Rides on Global Growth, Buyouts

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Boston Scientific Corporation (BSX - Free Report) is gaining traction in the emerging markets. New regulatory approvals and accretive acquisitions bode well for long-term growth. The stock carries a Zacks Rank #2 (Buy) currently.

Boston Scientific successfully continues with its expansion of operations across different geographies outside the United States. In the last reported second quarter of 2024, despite geopolitical weaknesses, the emerging market 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. Within Asia Pacific (APAC), Boston Scientific is particularly registering strong growth in Japan and China. In China, the company recently received regulatory approvals for FARAPULSE and AGENT Drug-Coated Balloon. It expects approval for FARAPULSE in Japan in the second half of 2024.

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 (GI) and pulmonary treatment options. Particularly, the company is gaining market share for its biliary franchise led by the AXIOS Stent and Delivery System and hemostasis, single-use imaging and metal stents franchises.

Within Urology, Boston Scientific continues to expand its market share globally. The company’s Stone management and prostheticurology franchises are growing well led by direct-to-patient efforts and early contribution from the limited market release of the Tenacio Pump.

Boston Scientific Corporation Price

We are also impressed with Boston Scientific’s recent acquisitions that have added numerous products (though many are under development) with immense potential. This, in turn, should help boost the top line in the long term. In June 2024, Boston Scientific initiated the acquisition of Silk Road Medical for $1.16 billion. This acquisition is expected to help the company progress in vascular medicine, where Silk Road has revolutionized stroke prevention and the treatment of carotid artery disease.

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 are creating a challenging business environment for Boston Scientific. As a result, in the second quarter of 2024, the company incurred a 20% rise in the cost of products sold, leading to a 1437 basis points contraction in gross margin. Further, there was a 6.8% rise in selling, general and administrative expenses.

Other Key Picks

Some other top-ranked stocks in the broader medical space are AngioDynamics (ANGO - Free Report) , Intuitive Surgical (ISRG - Free Report) and Hims & Hers Health (HIMS - Free Report) . While ANGO and ISRG sport a Zacks Rank #1 (Strong Buy) each, HIMS carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

AngioDynamics shares have risen 36.5% in the past three months. Estimates for the company’s loss per share narrowed from 58 cents to 47 cents for fiscal 2025 in the past 30 days.

ANGO’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 11.54%. In the last reported quarter, it posted an earnings surprise of 13%.

Intuitive Surgical’s shares have risen 16.4% in the past three months. Estimates for the company’s 2024 earnings per share improved 6.5% to $6.67 in the past 30 days.

ISRG’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.97%. In the last reported quarter, it posted an earnings surprise of 16.34%.

Estimates for Hims & Hers Health’s 2024 earnings per share have moved 5.3% upward to 20 cents in the past 60 days. Shares of the company have surged 69.5% in the past three months.

HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 79.2%. In the last reported quarter, it delivered an earnings surprise of a staggering 150%.

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