In the latest trading session, Boston Scientific (BSX) closed at $94.48, marking a +1.65% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.16%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 1.81%.
Prior to today's trading, shares of the medical device manufacturer had lost 6.32% lagged the Medical sector's gain of 1.68% and the S&P 500's gain of 1.03%.
The investment community will be closely monitoring the performance of Boston Scientific in its forthcoming earnings report. The company's upcoming EPS is projected at $0.78, signifying a 11.43% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.27 billion, showing a 15.44% escalation compared to the year-ago quarter.
BSX's full-year Zacks Consensus Estimates are calling for earnings of $3.04 per share and revenue of $20.06 billion. These results would represent year-over-year changes of +21.12% and +19.76%, respectively.
It is also important to note the recent changes to analyst estimates for Boston Scientific. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Boston Scientific holds a Zacks Rank of #3 (Hold).
With respect to valuation, Boston Scientific is currently being traded at a Forward P/E ratio of 30.62. This represents a premium compared to its industry average Forward P/E of 19.24.
One should further note that BSX currently holds a PEG ratio of 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Medical - Products industry held an average PEG ratio of 1.93.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Boston Scientific Corporation (BSX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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