Boston Scientific Gains 42.2% in a Year: What's Driving the Stock?

Boston Scientific BSX has witnessed strong momentum in the past year. Shares of the company have risen 42.4% compared with 8.5% growth of the industry during the same time frame. The S&P 500 Composite has increased 10.6%.With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment.Boston Scientific manufactures medical devices and products used in various interventional medical specialties worldwide. The company reorganized its operational structure and aggregated its core businesses into two reportable segments, MedSurg and Cardiovascular.The Cardiovascular segment comprises the Cardiology division (which represents the combined former Rhythm Management and Interventional Cardiology businesses) and Peripheral Interventions. The MedSurg group consists of three sub-segments — Endoscopy, Urology and Neuromodulation.Factors Favoring BSX’s Share Price GrowthBoston Scientific's share price is trending upward, prompted by the strong performance of the WATCHMAN left atrial appendage closure device. The next generation WATCHMAN FLX and FLX Pro are strongly capturing the global market. The company expects to see continued momentum within the WATCHMAN franchise supported by significant investments in clinical evidences. Additionally, the launch of the FARAPULSE Pulsed Field Ablation System and commercial excellence across multiple businesses and regions are driving the share price. This optimism, led by a solid fourth-quarter performance and increasing revenues from both the reportable business segments, is expected to contribute further.Investors showed optimism about Boston Scientific’s strategic acquisitions during 2024, which included the acquisition of Axonics, Inc. — a medical technology company focused on the development and commercialization of differentiated devices to treat urinary and bowel dysfunction. Meanwhile, BSX also entered into a definitive agreement to acquire Intera Oncology Inc., a Boston-based life science company and Cortex, Inc., an Ajax Health company. Additionally, in January 2025, Boston Scientific acquired Bolt Medical, a developer of an intravascular lithotripsy (IVL) advanced laser-based platform for the treatment of coronary and peripheral artery disease. These recent acquisition deals bolstered BSX stock.Boston Scientific’s continuous international expansion looks impressive. In the fourth quarter of 2024, despite geopolitical weaknesses, emerging market registered sturdy growth, primarily due to continued broad-based momentum across the company’s business and investment in this region. Also, during the quarter, BSX launched its next-generation accurate Prime Valve in Europe. Further, a strong FARAPULSE uptake in the Europe, Middle East and Africa (EMEA) region drove quarterly growth. In Asia Pacific (APAC), Boston Scientific is particularly registering strong growth in China, Japan, Australia and New Zealand despite recent volume-based procurement implementations. During the fourth quarter, the reported revenues rose 10.8% in the EMEA region and 11.1% in the Asia Pacific zone. Accordingly, these results have positively impacted the company’s shares, contributing to the price hike. Image Source: Zacks Investment ResearchFactors That May Offset BSX’s GainsFor the fourth quarter of 2024, the company reported a 27.9% rise in the cost of products sold, leading to a 138-basis points contraction in gross margin. This was due to headwinds arising from difficult macroeconomic conditions, continued supply-chain disruptions and labor shortages. Further, volatile financial market dynamics and significant volatility in the price and availability of goods and services are putting pressure on BSX’s profitability.Further, Boston Scientific remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the last few quarters. For 2025, the company expects a 100-basis point headwind from foreign exchange on revenues.A Look at BSX’s EstimatesThe Zacks Consensus Estimate for 2025 EPS has moved north 0.7% to $2.85 in the past 30 days.Boston Scientific has an earnings yield of 2.9% compared with the industry’s 1.2%. Other Stocks to ConsiderSome other top-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Masimo MASI and Cardinal Health CAH.Phibro Animal Health has an earnings yield of 8.2%, well ahead of the industry’s 1.2%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.06%. Its shares have surged 45.3% against the industry’s 2.2% decline in the past year.PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Masimo, presently carrying a Zacks Rank #2, has an earnings yield of 2.5%, well ahead of the industry’s -3.6%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 14.4%. Its shares have surged 45.3% against the industry’s 2.2% decline in the past year.Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.7% compared with the industry’s 9.4%. Shares of the company have rallied 12.1% against the industry’s 2.3% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Cardinal Health, Inc. (CAH): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks