The Zacks Analyst Blog Boston Scientific, Abbott and Medtronic

For Immediate ReleasesChicago, IL – March 25, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Boston Scientific BSX, Abbott ABT and Medtronic MDT.Here are highlights from Tuesday’s Analyst Blog:Amid Stagnation Fears, Boston Scientific Is a Buy on Growth FactorsBoston Scientific is experiencing a temporary cooling-off period after its strong run in 2024, where the stock climbed 54.5%, banking on robust financial performance and product advancements throughout the year. The stock's 3% decline so far in March can be attributed to broader market concerns, especially with the Fed's cautious stance on interest rates and economic conditions.The Federal Reserve's warning about a potential “stagflationary” environment characterized by declining spending trends and persistent inflation has created uncertainty in the market. Additionally, while the Fed previously signaled two possible rate cuts in 2025, it recently opted to hold rates steady, dampening investor sentiment.Beyond domestic economic uncertainty, global trade tensions have also become a significant risk factor for Boston Scientific. The company, with substantial operations in China and Europe, faces significant risks due to escalating global trade tensions in 2025. The U.S. administration's inconsistent tariff policies have created confusion among businesses, making it challenging for companies like Boston Scientific to navigate the shifting landscape.Month-to-date, BSX has outperformed the Zacks Medical Products industry’s 4.4% decline and the S&P 500's 4.8% dip. The stock also remained above its direct peers and MedTech behemoths Abbott, which recorded an 8.4% decline during this period. However, the company’s other peer, Medtronic, remained ahead of BSX with a 1.8% drop.BSX' Macroeconomic Jitters in a NutshellTight Monetary Policy on Stagflation Warning: During its March 19, 2025, meeting, the Federal Reserve opted to maintain the federal funds rate at 4.25% to 4.50%, reflecting concerns over potential stagflation. Not only this, but the Fed has also increased its 2025 inflation forecast to 2.7%, up from the previous estimate of 2.5%, indicating expectations of continued price level rises.The 2025 real GDP growth projection was adjusted downward to 1.7% from 2.1%, suggesting a slowdown in economic expansion. Investors apprehend this to large impact companies like Boston Scientific, which rely on debt for R&D and acquisitions.Trade War to Distort International Growth: Boston Scientific's extensive operations in China and Europe position it to be significantly affected by escalating global trade tensions in 2025. The company's strategic initiatives, such as establishing its first manufacturing site in Shanghai as part of its localization strategy and a five-year, $150 million investment to expand commercial operations in China, underscore its long-term plans to expand its foothold into these markets.However, since taking office, President Donald Trump has announced a multitude of tariff measures on various countries, including a range of tariffs on Chinese imports. In Europe, escalating trade tensions between the United States and the EU pose further risks. Given these developments, Boston Scientific, along with other MedTech majors like ABT and MDT, faces potential challenges, including increased operational costs, supply chain disruptions and reduced market access in these critical regions.Yet BSX Continues to Gain Market Share in Core BusinessesBoston Scientific is consistently gaining market share within its MedSurg segment. The Endoscopy business within MedSurg is gaining from 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.Most recently, the company 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.Within Urology, Boston Scientific continues to expand its market share globally. The company’s Stone management and prosthetic urology franchises are growing well, led by key launches with the TENACIO pump for the AMS 700 and continued success with the expanding LithoVue portfolio. Prostate Health also performed well in 2024, with double-digit growth in Rezum as well as strong performance in SpaceOAR.Within Neuromodulation, Boston Scientific’s pain and brain businesses are gaining traction. Within deep brain stimulation, the company expects improving growth in 2025, backed by the recent FDA and CE Mark approvals of the Cartesia X and HX leads. The company also expects higher growth in its pain franchise in 2025, driven by continued strong momentum in Intercept and the recently-released data supporting safety, effectiveness and durability through five years now.Promising Outlook for 2025Boston Scientific expects organic revenue growth of 14% to 16% in the first quarter and 10% to 12% for the full year 2025, driven by its expanding portfolio and the global execution of strategies. The company forecasts first-quarter adjusted EPS between 66 cents and 68 cents. Full-year EPS is projected in the range of $2.80-$2.87, implying 12% to 14% growth over 2024.Operational revenues are set to rise 18% to 20% in the first quarter, factoring in contributions from recent acquisitions. Despite minor headwinds from foreign exchange and tariffs, Boston Scientific anticipates 50 to 75 basis points in adjusted operating margin expansion. With a forecasted 12.5% adjusted tax rate and a manageable tariff impact, the company remains confident about sustaining differentiated financial performance throughout 2025.The Pain and Brain franchises are particularly expected to gain solid traction in 2025 due to the strong execution of core growth strategies. The Electrophysiology arm is expected to gain momentum on the sustained adoption of FARAPULSE PFA.How Are Estimates Placed for BSX?The Zacks Consensus Estimate for 2025 EPS has increased over the past 60 days, following 11 upward estimate revisions, as shown in the chart below. The estimated figure indicates 2.9% growth from the year-ago reported figure.BSX Stock Returns Higher Than the IndustryBSX’s trailing 12-month return on equity of 17.8% is better than its industry average of 17.3%. This depicts that the company is more efficient at generating profits from its shareholders' investments than its competitors.Strong Price UpsideBased on short-term price targets by 28 analysts, Boston Scientific's average target price is $118.57, reflecting a 17.8% potential upside from its last closing price of $100.69.BSX a Buy NowBoston Scientific's extensive operations in China and Europe expose it to the adverse effects of current global trade tensions. The imposition of tariffs on medical devices and related materials, coupled with the unpredictable nature of trade policies, poses significant risks to the company's supply chain and overall business performance in 2025. Further, macroeconomic headwinds like high interest rates may be limiting investor enthusiasm.Yet, a strong international position, strategic acquisitions and expansion in emerging markets drive long-term potential despite economic uncertainties. Further, a positive estimate revision trend and with an average price target of $118.57, analysts see a strong upside potential, reinforcing this Zacks Rank #2 (Buy) stock’s attractiveness.You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                     https://www.zacks.com                                                Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.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 Abbott Laboratories (ABT): Free Stock Analysis Report Boston Scientific Corporation (BSX): Free Stock Analysis Report Medtronic PLC (MDT): 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