Reasons to Retain BSX Stock in Your Portfolio for Now

In This Article:

Boston Scientific’s BSX growth in the third quarter of 2024 was backed by its successful expansion of operations across different geographies outside the United States. Its recent acquisitions are expected to drive revenue growth in the long term. Meanwhile, headwinds, such as currency movements and dull macroeconomic conditions, raise concern for Boston Scientific.

In the past year, this Zacks Rank #3 (Hold) company’s shares have rallied 66.1% compared with the industry’s 21.4% growth and the S&P 500 composite’s 29.2% gain.

The renowned manufacturer of medical devices and products has a market capitalization of $128.21 billion. BSX beat on earnings in each of the trailing four quarters, delivering an average surprise of 8.29%.

Let’s delve deeper.

Key Tailwinds for BSX

Impressive Value-Adding Acquisitions: Boston Scientific’s impressive recent acquisitions have added numerous products with immense potential. This, in turn, should help boost the top line in the long term. The company’s recently completed strategic buyouts include a $3.7 billion acquisition of Axonics. This acquisition is aimed at expanding BSX’s differentiated technologies portfolio within Urology. Additionally, the company completed the acquisition of Silk Road Medical for $1.16 billion. This acquisition should help the company progress in vascular medicine, where Silk Road has revolutionized stroke prevention and the treatment of carotid artery disease.

International Expansion Continues: Boston Scientific successfully expands operations across different geographies outside the United States. The company is putting additional efforts to expand its foothold in the emerging markets (which are defined as all countries except the United States, Western and Central Europe, Japan, Australia, New Zealand and Canada) that hold strong growth potentials based on their economic conditions, healthcare sectors and global capabilities.

Despite geopolitical weaknesses in the third quarter of 2024, the emerging market 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 16.8% year over year on an operational basis.

In Europe, the Middle East and Africa (EMEA), Boston Scientific is successfully expanding its base on the back of its diverse portfolio, new launches and commercial execution with healthy underlying market demand.

In the third quarter, EMEA sales grew 14.3% year over year on an operational basis, banking on above-market performance in Electrophysiology. In Asia Pacific, Boston Scientific is particularly registering strong growth in China, Japan, Australia and New Zealand. It also grew in the mid-teens despite recent volume-based procurement implementations.

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