What Makes Boston Scientific Corporation (BSX) A Compelling Name Within The Large-Cap Medical Device Space?

Baron Funds, an investment management company, released its “Baron Health Care Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 2.54% (Institutional Shares) in the quarter compared to a 3.87% gain for the Russell 3000 Health Care Index (benchmark) and a 4.72% decline for the Russell 3000 Index (the Index). The fund trailed the benchmark due to stock selection and, to a lesser extent, active sub-industry weights. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Baron Health Care Fund highlighted stocks such as Boston Scientific Corporation (NYSE:BSX). Boston Scientific Corporation (NYSE:BSX) manufactures and markets medical devices for use in various interventional medical specialties. The one-month return of Boston Scientific Corporation (NYSE:BSX) was 10.50%, and its shares gained 40.47% of their value over the last 52 weeks. On May 8, 2025, Boston Scientific Corporation (NYSE:BSX) stock closed at $103.29 per share with a market capitalization of $153.116 billion.

Baron Health Care Fund stated the following regarding Boston Scientific Corporation (NYSE:BSX) in its Q1 2025 investor letter:

"Boston Scientific Corporation (NYSE:BSX) is a global manufacturer of medical devices used in a broad range of interventional medical specialties. Shares contributed to performance. End markets are growing at an attractive 9%, with the company positioned well with its differentiated products in electrophysiology and structural heart. In particular, there has been increasing excitement around the emerging field of pulsed field ablation (PFA). Traditionally, doctors have used temperature-based methods (either hot or cold) to disable heart tissue responsible for irregular heartbeats; however, these methods may damage surrounding tissue. In comparison, PFA relies on electricity to damage aberrant tissue, and because different types of tissue have different electrical thresholds, the surrounding tissue can be selectively spared. Coupled with cost discipline and more than 50 basis points of annual operating margin expansion, we believe its double[1]digit EPS growth profile makes Boston Scientific a compelling name within the large-cap medical device universe."

Boston Scientific Corporation (NYSE:BSX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Boston Scientific Corporation (NYSE:BSX) at the end of the third quarter which was 92 in the previous quarter. Boston Scientific Corporation’s (NYSE:BSX) reported revenue of $4.663 billion, reflecting a 20.9% growth compared to Q1 2024. While we acknowledge the potential of Boston Scientific Corporation (NYSE:BSX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Boston Scientific Corporation (NYSE:BSX) and shared the list of best medical device stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.