Boston Scientific Climbs 40.5% in a Year: What's Driving the Stock?

Boston Scientific BSX has delivered an impressive return over the past year, with shares rallying 40.5%. The performance outpaced the industry’s 14.3% gain and the S&P 500 composite’s 12.5% rise.

Carrying a Zacks Rank #2 (Buy) at present, the renowned medical device maker is gaining from the continued success of its WATCHMAN device, which supports the fast momentum in the structural heart programs. Consistent market share gains in the MedSurg segment are highly impressive. As part of its long-term growth strategy, BSX continues to expand its international presence, including in emerging markets and pursue acquisitions.

Marlborough, MA-based Boston Scientific develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has advanced the practice of less-invasive medicine in diagnosing and treating a wide range of diseases and medical conditions, offering alternatives to surgery and other medical procedures that are typically traumatic to the body. Its research and development efforts focus on breakthrough technologies aimed at expanding current markets or entering adjacent ones.

Catalysts Behind BSX’s Growth

The rally in the share price can be linked to the company’s strong performance of the WATCHMAN left atrial appendage closure device. In particular, the next-generation WATCHMAN FLX and FLX Pro are strongly capturing the global market. In the first quarter of 2025, WATCHMAN sales grew 24% year over year, supported by an increase in the concomitant procedures enabled by the new DRG, effective since October. Boston Scientific reported that more than half of the U.S. EP implanting customers are now performing at least one concomitant procedure — a trend expected to continue throughout the rest of 2025.

The company’s MedSurg segment continues to capture market share, led by strong performance across several areas. The Endoscopy business sees robust growth in endoluminal surgery and single-use imaging franchises, along with sustained momentum in the AXIOS platform, where Boston Scientific is reinvesting to expand indications. Within Urology, the Stone management and prosthetic urology franchises are growing well, backed by key launches with the TENACIO pump for the AMS 700 and continued success with the expanding LithoVue portfolio. Within Neuromodulation, the pain and brain businesses are gaining traction.

Notably, Electrophysiology growth accelerated in the first quarter of 2025, growing 145% organically, fueled by rapid and sustained adoption of the transformative FARAPULSE PFA System. FARAPULSE remained at the forefront of AFib market transformation in 2024, surpassing $1 billion in global revenues and treating over 200,000 patients.

Meanwhile, Boston Scientific’s recent acquisitions, including Bolt Medical, Cortex and Axonics, have expanded its portfolio with numerous high-potential products, many of which are still in development. Sales from closed acquisitions contributed 400 basis points in the first quarter, resulting in 18.2% organic revenue growth for the company. Boston Scientific is also presently in the process of closing the acquisitions of SoniVie and Intera Oncology.

Besides, the company is actively expanding its footprint in the emerging markets (excluding countries like the United States, Western and Central Europe, Japan, Australia, New Zealand and Canada), which hold 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. Emerging markets’ net sales grew nearly 9.8% on an operational basis, year over year.

Concerns for BSX Stock

Boston Scientific continues to face a challenging business environment, driven by industry-wide macroeconomic pressures, including geopolitical tensions, global supply chain disruptions and labor market instability. With 40% of its sales from the international market, the company remains highly exposed to currency fluctuations.

A Glance at BSX’s Estimates

The Zacks Consensus Estimate for Boston Scientific’s 2025 and 2026 earnings per share (EPS) is expected to increase 15.9% and 12.3%, respectively, to $2.91 and $3.27. In the past 30 days, the Zacks Consensus Estimate for the company's 2025 EPS has remained unchanged.

Revenues for 2025 are projected to grow 16.4% to $19.50 billion, followed by a 10.7% increase to $21.58 billion in 2026.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Cardinal Health CAH and Cencora COR.

Phibro Animal Health has an estimated long-term earnings growth rate of 26% compared with the industry’s 15.7%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 30.6%. Its shares have rallied 49.8% compared with the industry’s 14.3% growth in the past year.

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

Cardinal Health, currently carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 10.9% compared with the industry’s 9.9% growth. Shares of the company have surged 74.1% compared with the industry’s modest 0.9% gain. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%.

Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.3% compared with the industry’s 3.7%. Shares of the company have rallied 34.1% against the industry’s 14.5% decline. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%.

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

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