Endoscopy Sales Growth to Support BSX Stock Amid Fierce Competition
Boston Scientific BSX is gaining from new product launches and accretive acquisitions. Yet, unfavorable currency movement and macroeconomic concerns are major dampeners. The stock carries a Zacks Rank #3 (Hold) currently.Factors Driving BSX SharesBoston Scientific’s Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of gastrointestinal and pulmonary treatment options. Particularly, the company is gaining market share, driven by the above-market growth of AXIOS and Exalt D in the third quarter. The company also registered strong double-digit growth in the Endoluminal Surgery franchise and recently received a Category 1 CPT code for the ESG weight loss procedure, which is expected to increase momentum within this business.Boston Scientific successfully continues with its expansion of operations across different geographies outside the United States. In Europe, Middle East and Africa (EMEA), Boston Scientific is successfully expanding its base banking on its diverse portfolio, new launches and commercial execution with healthy underlying market demand. In the third quarter, EMEA sales grew 14.3% year over year on an operational basis, banking on above-market performance in Electrophysiology, where the company successfully expanded its pulsed field ablation, complex PCI and structural heart leadership. In TAVI, Boston Scientific received the CE Mark and launched the next-generation ACURATE Prime Valve.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.The company’s recently completed strategic buyouts include 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. Boston Scientific also closed the previously announced acquisition of Axonics in November 2024. With this $3.7-billion acquisition, the company expects to expand its differentiated technologies portfolio within Urology.Boston Scientific Corporation Price Boston Scientific Corporation price | Boston Scientific Corporation QuoteOver the past three months, shares of BSX have gained 6.4% against the industry’s 2.4% slip. The company’s consistent efforts to expand in international markets, an array of new product launches and expansion in Endoscopy arm are expected to help the stock continue its uptrend in the coming days.Concerning Factors for BSXThe 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. With the sustained macroeconomic pressure, the company may struggle to keep its operating expenses in check. In the third quarter of 2024, the company reported a 19.2% rise in the cost of products sold, leading to a mere 5 basis points expansion in gross margin. Further, there was a 25.8% rise in selling, general and administrative expenses, resulting in a 123 basis points contraction in operating margin.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. In 2023, the company faced an approximate 80 basis-point headwind from foreign exchange on revenues. Again, in the third quarter of 2024, the company had a 10 basis-point impact on revenues from unfavorable currency fluctuations.Further, the presence of a large number of players has made the medical devices market highly competitive. The company participates in several markets, including Cardiovascular, CRM, Endosurgery and Neuromodulation, where it faces competition from large, well-capitalized companies such as Johnson & Johnson, Abbott, Medtronic, Stryker, Smith & Nephew and Edwards Lifesciences, apart from several other smaller companies.Key PicksSome better-ranked stocks in the broader medical space are Veracyte VCYT, ResMed RMD and Omnicell OMCL.Veracyte, carrying a Zacks Rank of 1 (Strong Buy) at present, has an estimated earnings growth rate of 65.8% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.VCYT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 520.58%. Veracyte’s shares have risen 49.2% in the past year compared with the industry’s 5.5% growth.ResMed, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 21.1% for 2025.RMD’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.41%. Its shares have risen 34.1% compared with the industry’s 7.7% growth in the past year.Omnicell, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 72.7% for fourth-quarter 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 121.74%.OMCL’s shares have gained 26.4% against the industry’s 15.7% decline in the past year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want 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 Omnicell, Inc. (OMCL): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis Report Veracyte, Inc. (VCYT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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