Boston Scientific (BSX) closed at $99.74 in the latest trading session, marking a +1.2% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.13%. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%.
The medical device manufacturer's shares have seen a decrease of 6.01% over the last month, not keeping up with the Medical sector's gain of 3.07% and the S&P 500's gain of 3.55%.
The upcoming earnings release of Boston Scientific will be of great interest to investors. On that day, Boston Scientific is projected to report earnings of $0.72 per share, which would represent year-over-year growth of 16.13%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.89 billion, up 18.63% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.91 per share and revenue of $19.49 billion, indicating changes of +15.94% and +16.4%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Boston Scientific. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 a 0.03% increase. Boston Scientific is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Boston Scientific is at present trading with a Forward P/E ratio of 33.83. Its industry sports an average Forward P/E of 19.2, so one might conclude that Boston Scientific is trading at a premium comparatively.
Investors should also note that BSX has a PEG ratio of 2.55 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BSX's industry had an average PEG ratio of 2.28 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 146, placing it within the bottom 41% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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