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Boston Scientific (BSX) Stock Declines While Market Improves: Some Information for Investors

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The most recent trading session ended with Boston Scientific (BSX - Free Report) standing at $83.08, reflecting a -0.5% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.4%. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.6%.

Coming into today, shares of the medical device manufacturer had gained 5.01% in the past month. In that same time, the Medical sector lost 2.27%, while the S&P 500 gained 1.71%.

The investment community will be closely monitoring the performance of Boston Scientific in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 16% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.03 billion, indicating a 14.36% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $2.40 per share and a revenue of $16.26 billion, demonstrating changes of +17.07% and +14.22%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Boston Scientific. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 moved 0.07% higher. Boston Scientific is holding a Zacks Rank of #2 (Buy) right now.

With respect to valuation, Boston Scientific is currently being traded at a Forward P/E ratio of 34.78. For comparison, its industry has an average Forward P/E of 24.1, which means Boston Scientific is trading at a premium to the group.

Also, we should mention that BSX has a PEG ratio of 2.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Medical - Products industry had an average PEG ratio of 2.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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