Is Boston Scientific Stock a Smart Pick for Your Portfolio Right Now? – January 2, 2025

Boston Scientific’s (BSX Quick QuoteBSX – Free Report) robust expansion of operations across different geographies outside the United States is poised to help it grow in the upcoming quarters. The company’s Electrophysiology (EP) arm continues to gain momentum on the sustained adoption of FARAPULSE PFA. The long-term prospects of the WATCHMAN devices are also encouraging. Meanwhile, the adverse macroeconomic impacts as well as currency fluctuations pose a concern for Boston Scientific’s operations.

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In the past year, this Zacks Rank #2 (Buy) company’s shares have rallied 55.1% compared with 10.7% growth of the industry and a 26.2% increase of the S&P 500 composite.

The renowned manufacturer of medical devices and products has a market capitalization of $131.64 billion. BSX beat on earnings in each of the trailing four quarters, delivering an average surprise of 8.29%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Let’s delve deeper.

Upsides for BSX Stock

International Expansion Continues: Boston Scientific is expanding its foothold in the emerging markets (which are defined as all countries except the United States, Western and Central Europe, Japan, Australia, New Zealand and Canada), which are holding strong growth potentials based on their economic conditions, healthcare sectors and global capabilities. Despite geopolitical weaknesses, the emerging markets registered sturdy growth in the third quarter of 2024, primarily banking on continued broad-based momentum across the company’s business and investment in this region. Emerging markets net sales grew nearly 16.8% on an operational basis, year over year.

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In Europe, the Middle East and Africa (EMEA), Boston Scientific is benefiting from the above-market performance in EP, having successfully expanded its Pulsed Field Ablation (PFA) leadership, complex PCI and structural heart. Meanwhile, Asia Pacific recorded robust gains in China, Japan, Australia and New Zealand, maintaining mid-teens growth in the third quarter despite recent volume-based procurement implementations.

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New Strategic Investments to Drive Electrophysiology: Following the acquisitions of Farapulse and Baylis Medical in 2022, Boston Scientific’s EP business is rapidly growing in market share globally. The EP growth accelerated in the third quarter, 177% on an organic basis, fueled by rapid and sustained adoption of the transformative FARAPULSE PFA System.

At the end of the third quarter, the company treated over 125,000 patients with FARAPULSE, driving rapid and transformative conversion from RF and cryo to PFA, specifically using FARAPULSE. Boston Scientific now expects PFA to likely exceed its previously communicated range of 40% to 60% of global AF ablations by 2026. The company is also positive about the recent FARAPULSE approvals in Japan and China and expects these launches to have a meaningful impact on its global EP business in 2025.

WATCHMAN, a Long-Term Growth Driver: Boston Scientific’s structural heart programs are fast building momentum, banking on a strong performance of the WATCHMAN left atrial appendage closure device. It is the first device to offer a non-pharmacologic alternative to oral anticoagulants that has been studied in a randomized clinical trial and is the leading device in percutaneous LAAC globally. The next generation WATCHMAN FLX and FLX Pro are strongly capturing the global market.

In the third quarter of 2024, WATCHMAN’s organic sales grew 18% year over year with a strong contribution from the ongoing launch of Watchman FLX Pro in the United States and Japan. Globally, Boston Scientific surpassed 500,000 patients treated with the WATCHMAN device. Boston Scientific commenced enrollment of its SIMPLIFY trial, SIMPLIFY trial in the third quarter, which will study WATCHMAN FLX Pro with the simplified post-implant drug regimen.

Downsides for BSX Stock

Macroeconomic Headwinds Dent Growth: 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 globally. 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 its operating expenses in check.

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Exposure to Currency Movement: With Boston Scientific recording 40% of its sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the last few quarters, as in the case of other important MedTech players too.

BSX Stock Estimate Trend

The Zacks Consensus Estimate for Boston Scientific’s 2024 earnings per share (EPS) has remained constant at $2.46 in the past 30 days.

The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $16.6 billion. This suggests a 16.5% rise from the year-ago reported number.

Top MedTech Stocks

Other top-ranked stocks in the broader medical space are Veracyte (VCYT Quick QuoteVCYT – Free Report) , Haemonetics (HAE Quick QuoteHAE – Free Report) and Phibro Animal Health (PAHC Quick QuotePAHC – Free Report) .

Veracyte has estimated 2024 earnings growth rate of 37.2% compared with the industry’s 15.3%. Veracyte’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 520.6%. Its shares have risen 44.5% compared to the industry’s 3.6% growth in the past year.

VCYT sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Haemonetics, carrying a Zacks Rank #2 at present, has estimated fiscal 2025 earnings growth rate of 15.9% compared to the industry’s 12.3%. Shares of the company have fallen 8.3% against the industry’s 9.7% growth. HAE’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 2.82%.

Phibro Animal Health, carrying a Zacks Rank #2 at present, has estimated earnings growth rate of 35.3% for fiscal 2025 compared with the industry’s 11.1%. Shares of the company have risen 77.6% compared with the industry’s 9.8% growth over the past year. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.47%.