Is it Worth Retaining Boston Scientific Stock in Your Portfolio Now?

Boston Scientific’s BSX first-quarter 2025 performance was driven by its robust expansion of operations across different geographies outside the United States. The company’s impressive strategic acquisitions provide a favorable opportunity for growth. Meanwhile, headwinds like currency fluctuations and fierce competitive pressure pose a concern for Boston Scientific’s operations.

In the past year, this Zacks Rank #3 (Hold) company's shares have rallied 40% compared with the industry and the S&P 500 composite’s growth of 10.2% and 11.2%, respectively.

The renowned manufacturer of medical devices and products has a market capitalization of $152.31 billion. BSX beat on earnings in each of the trailing four quarters, delivering an average surprise of 8.79%.

Let us delve deeper.

Upside for BSX Stock

International Expansion Continues: Boston Scientific successfully continues with its expansion of operations across different geographies outside the United States. Within its international regions, the company is putting additional efforts to expand its foothold in the emerging markets with strong growth potential based on their economic conditions, healthcare sectors and global capabilities.

In the first quarter of 2025, despite geopolitical weaknesses, emerging markets registered sturdy growth, primarily banking on continued broad-based momentum across the company’s business and investment in this region. During this period, emerging markets' net sales grew nearly 9.8% year over year on an operational basis.

In the first quarter, Boston Scientific sales grew 8% year over year on an operational basis in the Europe, Middle East and Africa (EMEA) region.  This 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.

Within Asia Pacific (APAC), in Japan, the company registered double-digit growth banking on strong FARAPULSE uptake. This momentum is expected to continue through the rest of 2025. China also delivered high single-digit growth over a very tough 42% growth comp in first-quarter 2025. 

Impressive Value-Adding Acquisitions: Boston Scientific’s recent acquisitions 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. 

BSX’s recently completed strategic buyouts include the acquisition of Bolt Medical. Earlier, the company closed the acquisition of Cortex, an advanced AF mapping solution. It also acquired Silk Road to broaden its presence in the field of vascular medicine. 

Further, Boston Scientific is currently looking forward to closing the acquisitions of SoniVie, which has developed a clinical-stage differentiated ultrasound-based renal denervation technology,  and Intera Oncology, which will broaden its interventional oncology offerings to patients with liver cancer.

Downside for BSX Stock

Exposure to Currency Movement: With Boston Scientific recording 40% of its sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the past few quarters, as in the case of other important MedTech players, too. For 2025, the company expects a 50-basis-point headwind from foreign exchange on revenues.

Competitive Landscape: The presence of many players has made the medical devices market highly competitive. BSX participates in several markets, including Cardiovascular, CRM, Endosurgery and Neuromodulation, where it faces competition from large, well-capitalized companies as well as several other smaller companies.

BSX Stock’s Estimate Trend

The Zacks Consensus Estimate for Boston Scientific’s 2025 earnings per share has moved north 2.1% to $2.91 in the past 30 days.

The Zacks Consensus Estimate for 2025 revenues is pegged at $19.49 billion, indicating a 16.4% rise from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, STERIS STE and Cardinal Health CAH. 

Phibro Animal Health has an estimated long-term earnings growth rate of 26.2% compared with the industry’s 15.9%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 30.6%. Its shares have surged 34.5% compared with the industry’s 8.9% growth in the past year.

PAHC carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

STERIS, carrying a Zacks Rank #2 at present, has an earnings yield of 4.3% compared with the industry’s -2.7%. Shares of the company have rallied 40% compared with the industry’s 8.9% growth. STE’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 0.6%.

Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 11.8% for fiscal 2026 compared with the industry’s 9.8%. Shares of the company have rallied 52.6% against the industry’s 4.1% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%.

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

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