Boston Scientific’s BSX fourth-quarter 2024 performance was driven by its robust expansion of operations across different geographies outside the United States. The company’s impressive strategic acquisitions provide a favorable opportunity for growth. The long-term prospects of the WATCHMAN devices are also encouraging. Meanwhile, headwinds like currency fluctuations pose a concern for Boston Scientific’s operations.

In the past year, this Zacks Rank #2 (Buy) company's shares have rallied 40.6% compared with the industry and the S&P 500 composite’s growth of 7.7% and 8.7%, respectively.

The renowned manufacturer of medical devices and products has a market capitalization of $142.29 billion. BSX beat on earnings in each of the trailing four quarters, delivering an average surprise of 8.25%.

Let us delve deeper.

Upsides for BSX Stock

International Expansion Continues: Boston Scientific successfully continues with its expansion of operations across different geographies outside the United States. Within its international regions, the company is putting additional efforts to expand foothold in the emerging markets, which hold strong growth potentials. In the fourth 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. 

In Europe, Middle East and Africa, Boston Scientific is successfully expanding its base by banking on a diverse portfolio, new launches and commercial execution with healthy underlying market demand. Within the Asia Pacific region, in Japan, strong contributions from AGENT DCB, Rezum, WATCHMAN FLEX Pro and a very early contribution from FARAPULSE drove growth. In China, the company is experiencing differentiated growth fueled by a broad portfolio, focus on innovation and excellent commercial execution. 

Impressive Value-Adding Acquisitions: Boston Scientific’s recent acquisitions have added numerous products with immense potential to help boost the top line in the long term.

The company’s recently-completed strategic buyouts include the acquisition of Cortex, an advanced AF mapping solution. BSX also acquired Silk Road to broaden its field of vascular medicine. Boston Scientific also completed the acquisition of Axonics in the fourth quarter of 2024. Further, the company is currently looking forward to closing acquisition of Intera Oncology, which will broaden its interventional oncology offerings to patients with liver cancer.

Image Source: Zacks Investment Research

WATCHMAN, Long-Term Growth Driver: Boston Scientific’s structural heart programs are fast building momentum, banking on the strong performance of the WATCHMAN left atrial appendage closure device. In the fourth quarter of 2024, WATCHMAN sales grew 20% year over year with strong contribution from the increase in concomitant procedures enabled by the new DRG, which became effective in October and positive data from the company’s option trial.

Downside for BSX Stock

Exposure to Currency Movement: With Boston Scientific recording 40% of sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the last few quarters, as in the case of other important MedTech players too. For 2025, the company expects a 100-basis-point headwind from foreign exchange on revenues.

BSX Stock’s Estimate Trend

The Zacks Consensus Estimate for Boston Scientific’s 2025 earnings per share has remained constant at $2.85 in the past 30 days.

The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $19.05 billion. This indicates a 13.7% rise from the year-ago reported number.

Other Top MedTech Stocks

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

Phibro Animal Health has an estimated fiscal 2025 earnings growth rate of 78.3% compared with the industry’s 8.5%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.06%. Its shares have surged 68.2% compared with the industry’s 12.5% 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.

Masimo, presently carrying a Zacks Rank #1, has an earnings yield of 2.5%, well ahead of the industry’s -3.6%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 14.4%. Its shares have surged 45.3% against the industry’s 2.2% decline in the past year.

Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.7% compared with the industry’s 9.5%. Shares of the company have rallied 7.5% against the industry’s 3.6% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.64%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Boston Scientific Corporation (BSX) : Free Stock Analysis Report

Cardinal Health, Inc. (CAH) : Free Stock Analysis Report

Masimo Corporation (MASI) : Free Stock Analysis Report

Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report

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

Zacks Investment Research