Boston Scientific (BSX) Increases Yet Falls Behind Market: What Investors Need to Know

The most recent trading session ended with Boston Scientific (BSX) standing at $98.66, reflecting a +0.5% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 1%. Meanwhile, the Dow experienced a rise of 0.78%, and the technology-dominated Nasdaq saw an increase of 1.51%.

Coming into today, shares of the medical device manufacturer had gained 10.73% in the past month. In that same time, the Medical sector lost 1.36%, while the S&P 500 lost 2.14%.

Market participants will be closely following the financial results of Boston Scientific in its upcoming release. The company plans to announce its earnings on February 5, 2025. The company's earnings per share (EPS) are projected to be $0.65, reflecting a 18.18% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.4 billion, indicating a 18.13% growth compared to the corresponding quarter of the prior year.

Any recent changes to analyst estimates for Boston Scientific should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% downward. As of now, Boston Scientific holds a Zacks Rank of #3 (Hold).

In the context of valuation, Boston Scientific is at present trading with a Forward P/E ratio of 35.44. This denotes a premium relative to the industry's average Forward P/E of 18.22.

We can additionally observe that BSX currently boasts a PEG ratio of 2.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Products industry currently had an average PEG ratio of 2.19 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.