Innovations and Buyouts Support BSX Stock Amid Macroeconomic Woes

Boston Scientific BSX has been 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 SharesWe are particularly impressed by 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 expects to close the previously-announced acquisition of Axonics in the fourth quarter of 2024. With this $3.7-billion acquisition, the company expects to expand its differentiated technologies portfolio within Urology.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, driven by above-market performance in Electrophysiology (EP), where the company successfully expanded its pulsed field ablation (PFA), complex PCI and structural heart leadership. In TAVI, Boston Scientific received CE Mark and launched the next-generation ACURATE Prime Valve.Boston Scientific’s Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of gastrointestinal (GI) and pulmonary treatment options. Particularly, the company is gaining market share by banking on 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 Corporation Price Boston Scientific Corporation price | Boston Scientific Corporation Quote Over the past three months, shares of BSX have gained 8.7% against the industry’s 1.3% decline. The company’s consistent efforts to expand in international markets and its array of new product launches are expected to help the stock continue its uptrend in the coming days.Concerning Factors for BSXWith 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 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 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 cost of product 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.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 Penumbra PEN, Haemonetics HAE and Phibro Animal Health PAHC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Penumbra shares have risen 10.5% in the past year. Estimates for the company’s 2024 earnings per share have jumped 0.7% to $2.81 in the past 30 days. PEN’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.54%. In the last reported quarter, it posted an earnings surprise of 23.19%.Estimates for Haemonetics’ fiscal 2025 earnings per share have remained constant at $4.59 in the past 30 days. Shares of the company have decreased 3.6% in the past year against the industry’s growth of 17.3%. HAE’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.82%. In the last reported quarter, it delivered an earnings surprise of 2.75%.Estimates for Phibro Animal Health’s fiscal 2025 earnings per share have increased 2.5% to $1.61 in the past 30 days. Shares of the company have surged 113.5% in the past year compared with the industry’s 17.3% rise. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.47%. In the last reported quarter, it delivered an earnings surprise of 52.17%.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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 Haemonetics Corporation (HAE): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report Penumbra, Inc. (PEN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks