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

Boston Scientific (BSX) closed the most recent trading day at $43.10, moving -4.14% from the previous trading session. This change lagged the S&P 500's 0.59% loss on the day. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 0.65%.

Shares of the medical device manufacturer witnessed a loss of 12.56% over the previous month, trailing the performance of the Medical sector with its loss of 0.36%, and the S&P 500's loss of 1.37%.

The investment community will be closely monitoring the performance of Boston Scientific in its forthcoming earnings report. The company is predicted to post an EPS of $0.8, indicating a 6.67% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.28 billion, up 4.22% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.3 per share and revenue of $21.33 billion, which would represent changes of +7.84% and +6.28%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Boston Scientific. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Boston Scientific is currently sporting a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Boston Scientific currently has a Forward P/E ratio of 13.62. This valuation marks a discount compared to its industry average Forward P/E of 20.81.

One should further note that BSX currently holds a PEG ratio of 1.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Medical - Products industry was having an average PEG ratio of 1.76.

The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BSX in the coming trading sessions, be sure to utilize Zacks.com.

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

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