Is Boston Scientific Stock a Smart Pick for Your Portfolio Right Now?

Boston Scientific (BSX) has shown strong performance in its latest quarter, largely due to its ongoing international expansion initiatives. The company's growth has been supported by strategic acquisitions that expand its product offerings, making it a compelling option for investors. Additionally, the long-term outlook for the WATCHMAN device continues to ignite optimism among stakeholders. However, challenges such as currency fluctuations present risks that investors should consider.

Over the past year, Boston Scientific's shares have surged by 40.6%, outperforming both the industry average and the S&P 500 index, which grew by only 7.7% and 8.7%, respectively.

With a market capitalization of $142.29 billion, Boston Scientific has consistently delivered on its earnings expectations, achieving a surprise average of 8.25% over the last four quarters.

Upsides for BSX Stock

International Expansion Continues: Boston Scientific is making significant strides in expanding its operations globally. The company is focusing on emerging markets that present substantial growth opportunities. In the fourth quarter of 2024, these markets displayed strong growth, driven by broad-based momentum and investment in these regions.

In areas such as Europe, the Middle East, and Africa, Boston Scientific is successfully strengthening its position through a diverse product portfolio, new product launches, and effective commercial execution, all of which align with robust market demand. In the Asia Pacific region, Japan's growth is notable due to strong performances from products like AGENT DCB, Rezum, and WATCHMAN FLEX Pro, while in China, Boston Scientific benefits from a well-rounded portfolio and a focus on innovative strategies.

Impressive Value-Adding Acquisitions: The company's recent acquisitions have diversified its product range and are expected to foster long-term revenue growth. Among these acquisitions was Cortex, an advanced solution for AF mapping, and Silk Road, aimed at enhancing its vascular medicine focus. Additionally, BSX completed the acquisition of Axonics in the fourth quarter of 2024 and is in the process of acquiring Intera Oncology, which will enhance its offerings in interventional oncology.

WATCHMAN, Long-Term Growth Driver: Boston Scientific's structural heart programs are gaining traction, primarily due to the strong sales performance of the WATCHMAN device, designed for left atrial appendage closure. In the fourth quarter of 2024, WATCHMAN sales increased by 20% year-over-year, fueled by the success of concurrent procedures enabled by new reimbursement guidelines introduced in October and positive data from ongoing clinical trials.

Downside for BSX Stock

Exposure to Currency Movement: With 40% of sales generated from international markets, Boston Scientific is particularly susceptible to currency fluctuations, which have posed challenges in recent quarters. The company anticipates a headwind of about 100 basis points from currency impacts on revenues for 2025.

BSX Stock’s Estimate Trend

The Zacks Consensus Estimate for Boston Scientific’s earnings per share for 2025 has remained steady at $2.85 over the past 30 days. Furthermore, the revenue estimate for 2025 stands at $19.05 billion, suggesting a robust 13.7% increase from the previous year.

Other Top MedTech Stocks

Several highly ranked stocks within the medical devices sector include Phibro Animal Health (PAHC), Masimo (MASI), and Cardinal Health (CAH). Phibro Animal Health is projected to experience earnings growth of 78.3% for fiscal 2025, outperforming the industry average of 8.5%. The company has consistently exceeded earnings expectations in prior quarters, with a notable average surprise of 27.06%.

Masimo, also holding a strong position with a Zacks Rank of 1 (Strong Buy), benefits from a favorable earnings yield of 2.5%, significantly above the industry’s -3.6% average. Similar to Phibro, Masimo has surpassed earnings estimates in its most recent quarters, showing a strong average surprise of 14.4%.

Cardinal Health carries a Zacks Rank of 2 and has an estimated long-term earnings growth rate of 10.7%, slightly above the industry’s 9.5% average. Its stock has appreciated by 7.5% compared to an industry decline of 3.6% in the past year, consistently beating earnings expectations with an average surprise of 9.64%.BostonScientific, Investors, WATCHMAN