International Expansion, Product Launches Support BSX Stock

Boston Scientific BSX has been gaining from product launches and accretive acquisitions. International expansion remains a key growth driver. The stock carries a Zacks Rank #2 (Buy).Factors Driving BSX SharesBoston Scientific continues to successfully expand its operations across various geographies outside the United States. In Europe, the 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 fourth quarter, EMEA sales grew 11.6% year over year on an operational basis. During the quarter, the company launched its next-generation accurate Prime Valve in Europe. Further, an early contribution from the LUX-Dx II launch in Europe, as well as a strong FARAPULSE uptake in this region, drove growth.Boston Scientific’s Endoscopy business within MedSurg is witnessing strong growth in endoluminal surgery and single-use imaging franchises, along with sustained growth of the AXIOS platform, where the company is reinvesting to drive expanded indications and recently received approval in Japan for AXIOS for gall bladder drainage. In endoluminal surgery, Boston Scientific is benefiting from positive reimbursement wins for its ESG weight loss procedure with the recently announced Category 1 CPT code and now IFSO, an International Bariatric Committee endorsing ESG with guideline updates.We are also impressed with Boston Scientific’s recent acquisitions, which have added numerous products (though many are still 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 Cortex, an advanced AF mapping solution. The company also acquired Silk Road to broaden in the field of vascular medicine. Boston Scientific also completed the acquisition of Axonics in the fourth quarter of 2024.Over the past three months, shares of BSX have gained 14.1% against the industry’s 5.7% slip. The company’s consistent efforts to expand in international markets and an array of new product launches are expected to help the stock continue its uptrend in the coming days.Boston Scientific Corporation Price Boston Scientific Corporation price | Boston Scientific Corporation QuoteConcerning Factors for BSXThe industry-wide trend of difficult macroeconomic conditions, characterized by geopolitical pressure and disruptions in economic activity, global supply chains, and labor markets, is creating a challenging business environment for Boston Scientific. Given sustained macroeconomic pressure, the company may struggle to keep its operating expenses in check. In the fourth quarter of 2024, the company witnessed a 27.9% rise in cost of product sold, resulting in a 138-basis point contraction in gross margin. Further, there was a 16.9% rise in selling, general and administrative expenses, resulting in a mere 6 basis points expansion 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. For 2025, the company expects a 100-basis point headwind from foreign exchange on revenues.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.Other Key PicksSome other top-ranked stocks in the broader medical space are Masimo MASI, Hims & Hers Health HIMS and Cardinal Health CAH. At present, Masimo sports a Zacks Rank #1 (Strong Buy), whereas Boston Scientific and Cardinal Health carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.Masimo’s shares have rallied 26.5% in the past year. Estimates for MASI’s 2025 earnings per share (EPS) have increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%. Estimates for Hims & Hers Health’s 2025 earnings per share have jumped 21.2% to 63 cents in the past 30 days. Shares of the company have surged 136.5% in the past year against the industry’s 12.2% fall. Its earnings yield of 1.8% also outpaced the industry’s -4.6% yield. HIMS’ earnings surpassed estimates in two of the trailing four quarters, matched in one and missed on another occasion, the average surprise being 40.4%.Estimates for Cardinal Health’s fiscal 2025 EPS have increased 1.5% to $7.94 in the past 30 days. Shares of the company have jumped 17.5% in the past year against the industry’s 3.2% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 Cardinal Health, Inc. (CAH): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): 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