EMEA Growth & Product Launches to Support Boston Scientific Stock

Boston Scientific BSX has been gaining from new product launches and accretive acquisitions. International expansion remains a key growth driver. The stock carries a Zacks Rank #2 (Buy).

Factors Driving BSX Shares

Boston Scientific successfully continues with its expansion of operations across different geographies outside the United States. In Europe, the Middle East and Africa (EMEA), Boston Scientific is successfully expanding its base banking on its diverse portfolio, new launches and commercial execution with healthy underlying market demand. In EMEA, Boston Scientific is successfully expanding its base banking on its diverse portfolio, new launches and commercial execution with healthy underlying market demand. In the first quarter of 2025, EMEA sales grew 8% year over year on an operational basis. This above-market growth was led by strong performance in EP, as well as double-digit growth in the anchor technologies across the broader portfolio, including Complex PCI, TheraSphere and Interventional Oncology, AXIOS and Rezum.

Boston Scientific’s 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. 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.

We are also impressed with Boston Scientific’s recent acquisitions that have added numerous products (though many are under development) with immense potential. This, in turn, should help boost the top line in the long term. The company’s recently completed strategic buyouts include the acquisition of Bolt Medical. Earlier the company closed the acquisitions of Cortex an advanced AF mapping solution. The company also acquired Silk Road to expand in the field of vascular medicine. Boston Scientific also completed the acquisition of Axonics in the fourth quarter of 2024. Sales from closed acquisitions contributed 400 basis points in the first quarter, resulting in 18.2% organic revenue growth for Boston Scientific.

Over the past three months, shares of BSX have declined 0.8% against the industry’s 6.5% slip. The company’s consistent efforts to expand in international markets and an array of new product launches are expected to help the stock regain its momentum in the coming days.

Boston Scientific Corporation Price

Boston Scientific Corporation price | Boston Scientific Corporation Quote

Concerning Factors for BSX

Boston Scientific continues to face a challenging business environment driven by industry-wide macroeconomic pressure, including geopolitical tensions, global supply chain disruptions and labor market instability. International conflicts and retaliatory trade actions have increased global risks, while volatile financial markets and fluctuating prices for goods and services are squeezing profitability. Tariffs are expected to pose a $200 million impact in 2025, which, although planned to be offset through sales growth, cost controls, and FX benefits, underscores the heightened complexity of the current environment. Sustained macroeconomic pressure may make it more difficult for the company to manage operating expenses effectively.

In the first quarter of 2024, the company reported a 20.2% rise in cost of product. Further, there was a 17.1% rise in selling, general and administrative expenses.

Further, the presence of a large number of players has made the medical devices market highly competitive. The company participates in several markets, including Cardiovascular, CRM, Endosurgery and Neuromodulation, where it faces competition from large, well-capitalized companies such as Johnson & Johnson, Abbott, Medtronic, Stryker, Smith & Nephew and Edwards Lifesciences, apart from several other smaller companies.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Masimo MASI, Prestige Consumer Healthcare Inc.  PBH and Hims & Hers Health HIMS.

Masimo has an earnings yield of 3.4%, well ahead of the industry’s -3.2%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 14.4%. Its shares have risen 11.6% against the industry’s 10.5% decline in the past year.

MASI sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Prestige Consumer Healthcare, carrying a Zacks Rank #2 at present, has an earnings yield of 5.91% compared with the industry’s -0.22%. Shares of the company have rallied 2.2% against the industry’s 6.5% dip over the last three months. Prestige Consumer has a long-term historical earnings growth of 8.7%

Hims & Hers Health, carrying a Zacks Rank #2 at present, has an earnings yield of 2.5% compared with the industry’s -6.8%. Shares of the company have rallied 118.7% compared with the industry’s 1.7% growth. HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 40.4%.

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This article originally published on Zacks Investment Research (zacks.com).

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