Boston Scientific continues to forge ahead with its innovative strides, FDA green lights and value-added acquisitions, positioning itself for long-term growth. This foresight, however, comes against a backdrop of tumultuous macroeconomic headwinds, exerting palpable pressure on the company’s performance. At present, the stock holds a Zacks Rank #3 (Hold).
Venturing into global territories has been a strategic boon for Boston Scientific. A remarkable 40% of the company’s consolidated revenues for the year 2022 emanated from international markets. Specifically, Boston Scientific has been aggressively bolstering its presence in emerging markets, which offer an array of promises owing to economic conditions and an enhanced healthcare landscape.
With a keen focus on Europe, the Middle East, and Africa (EMEA), Boston Scientific has been strategically leveraging its diverse product portfolio and new launches to capitalize on robust market demand in these regions.
The company’s foray into the Asia Pacific (APAC) region has also borne fruit, with impressive growth in Japan and China. Boston Scientific’s exploits in Japan, buoyed by new product ventures, such as AGENT DCB, Rezum, POLARx FIT, and WATCHMAN FLX, augur well for its business. In China, the company’s Imaging and Complex PCI portfolio have been pivotal in driving robust growth.
Boston Scientific Corporation Price
Boston Scientific Corporation price | Boston Scientific Corporation Quote
Boston Scientific’s MedSurg segment is experiencing a swift revival, with its Endoscopy division reaping substantial benefits from a robust demand for its gastrointestinal and pulmonary treatment options globally. The recent U.S. marketing approval for an expanded indication of the AXIOS stent to include gallbladder drainage further amplifies the company’s reach to a wider patient base.
Within Urology, Boston Scientific continues its global market expansion, led by robust growth in its Stone management and Prostate health franchises. The company’s Neuromodulation division is also charting an upward trajectory with its pain business gaining strong traction, chiefly driven by spinal cord stimulation (SCS).
Over the past year, Boston Scientific’s stock has escalated by 27.1%, overshadowing the industry’s modest 1.7% rise.
However, a turbulent macroeconomic landscape characterized by inflation, disruptive economic activities, and volatile financial market dynamics, has cast a shadow on Boston Scientific’s financial prospects. Moreover, the company’s heavy reliance on international sales makes it susceptible to adverse currency fluctuations, posing a significant risk to its revenues.
The third quarter of 2023 witnessed a 12.5% surge in the cost of products sold and a 9.7% rise in selling, general, and administrative expenses, further alluding to the strain stemming from macroeconomic challenges.
Boston Scientific projects an approximate 100 basis-point headwind from foreign exchange on revenues for the full-year 2023, highlighting the grave impact of currency movements on its financials.
Key Picks
In contrast, some promising stocks in the broader medical realm such as DaVita DVA, Haemonetics HAE, and HealthEquity HQY have shown strong potential. DaVita holds a Zacks Rank #1 (Strong Buy), while Haemonetics and HealthEquity each carry a Zacks Rank #2 (Buy).
DaVita’s strong performance has led to a steady increase in its stock value by 36.5% over the past year. Consistent earnings surprises and robust results substantiate its growth trajectory.
Haemonetics, with its stable stock performance, consistently outperforms earnings estimates, advocating for its solid position in the market.
HealthEquity, marked by a rise in its stock value and a series of earnings surprises, emerges as a promising player in the medical landscape.
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