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Boston Scientific (BSX) Stock Dips While Market Gains: Key Facts

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Boston Scientific (BSX - Free Report) closed at $82.94 in the latest trading session, marking a -0.14% move from the prior day. This change lagged the S&P 500's 1.07% gain on the day. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 2.17%.

The medical device manufacturer's stock has climbed by 9.4% in the past month, exceeding the Medical sector's gain of 3.34% and the S&P 500's gain of 2.92%.

The upcoming earnings release of Boston Scientific will be of great interest to investors. The company is expected to report EPS of $0.58, up 16% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $4.03 billion, indicating a 14.34% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.40 per share and a revenue of $16.26 billion, indicating changes of +17.07% and +14.18%, respectively, from the former year.

Any recent changes to analyst estimates for Boston Scientific should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Boston Scientific is carrying a Zacks Rank of #2 (Buy).

From a valuation perspective, Boston Scientific is currently exchanging hands at a Forward P/E ratio of 34.63. Its industry sports an average Forward P/E of 24.47, so one might conclude that Boston Scientific is trading at a premium comparatively.

It is also worth noting that BSX currently has a PEG ratio of 2.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Products industry had an average PEG ratio of 2.04 as trading concluded yesterday.

The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 34% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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