Why Boston Scientific (BSX) Dipped More Than Broader Market Today

Boston Scientific (BSX) closed at $68.55 in the latest trading session, marking a -1.55% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.52%. Meanwhile, the Dow experienced a drop of 1.56%, and the technology-dominated Nasdaq saw a decrease of 1.78%.

Shares of the medical device manufacturer have depreciated by 5.23% over the course of the past month, underperforming the Medical sector's loss of 3.1%, and the S&P 500's loss of 2.25%.

The upcoming earnings release of Boston Scientific will be of great interest to investors. The company is forecasted to report an EPS of $0.8, showcasing a 6.67% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $5.19 billion, showing a 11.32% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $3.45 per share and a revenue of $22.29 billion, demonstrating changes of +12.75% and +11.04%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Boston Scientific. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. As of now, Boston Scientific holds a Zacks Rank of #3 (Hold).

Investors should also note Boston Scientific's current valuation metrics, including its Forward P/E ratio of 20.16. This denotes a premium relative to the industry average Forward P/E of 19.58.

It is also worth noting that BSX currently has a PEG ratio of 0.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Products industry had an average PEG ratio of 1.6 as trading concluded yesterday.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 40% of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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

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