International Expansion Supports BSX Stock Amid Macroeconomic Woes

Boston Scientific BSX is gaining traction in the international markets. New regulatory approvals and accretive acquisitions bode well for long-term growth. Yet, unfavorable currency movement and macroeconomic concerns are major dampeners. The stock carries a Zacks Rank #3 (Hold).Factors Driving BSX SharesBoston Scientific successfully continues with its expansion of operations across different 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 third quarter, EMEA sales grew 14.3% year over year on an operational basis, banking on 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, 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.We are 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 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 Corporation Price Boston Scientific Corporation price | Boston Scientific Corporation QuoteOver the past three months, shares of BSX have gained 11.9% compared with the industry’s 2.7% growth. 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.Concerning Factors for BSX StockThe 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 the 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.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 witnessed 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 Haemonetics HAE, Penumbra PEN and ResMed RMD. While ResMed sports a Zacks Rank #1 (Strong Buy) at present, Haemonetics and Penumbra carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Haemonetics has an earnings yield of 5.02% compared with the industry’s 1.18%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.39%. Its shares have risen 1.8% compared with the industry’s 23.1% growth in the past year. Estimates for Haemonetics’ 2025 EPS have moved north 0.4% to $4.59 in the past 30 days.Estimates for Penumbra’s 2024 EPS have moved 8.1% north to $2.79 in the past 30 days. Shares of the company have surged 60.6% in the past year compared with the industry’s growth of 32.7%. PEN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 10.54%.Estimates for ResMed’s fiscal 2025 EPS have risen 2.7% in the past 30 days. Shares of the company have surged 86.3% in the past year compared with the industry’s 32.1% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.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 ResMed Inc. (RMD): Free Stock Analysis Report Haemonetics Corporation (HAE): 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