Boston Scientific (BSX) ended the recent trading session at $48.85, demonstrating a +2.43% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. Meanwhile, the Dow gained 1.73%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Prior to today's trading, shares of the medical device manufacturer had lost 14.84% lagged the Medical sector's gain of 0.14% and the S&P 500's gain of 4.59%.
Investors will be eagerly watching for the performance of Boston Scientific in its upcoming earnings disclosure. The company is expected to report EPS of $0.83, up 10.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.4 billion, up 6.63% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.37 per share and revenue of $21.64 billion, which would represent changes of +10.13% and +7.81%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Boston Scientific. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. Boston Scientific presently features a Zacks Rank of #4 (Sell).
Digging into valuation, Boston Scientific currently has a Forward P/E ratio of 14.16. For comparison, its industry has an average Forward P/E of 16.76, which means Boston Scientific is trading at a discount to the group.
We can also see that BSX currently has a PEG ratio of 0.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Medical - Products industry was having an average PEG ratio of 1.45.
The Medical - Products industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 35% echelons 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).