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

In the latest trading session, Boston Scientific (BSX) closed at $76.71, marking a -1.29% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.31% for the day. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq depreciated by 1.09%.

Shares of the medical device manufacturer witnessed a gain of 2.75% over the previous month, beating the performance of the Medical sector with its gain of 0.61% and the S&P 500's gain of 2.73%.

Analysts and investors alike will be keeping a close eye on the performance of Boston Scientific in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.58, signifying a 9.43% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.02 billion, indicating a 11.68% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.32 per share and revenue of $15.99 billion, indicating changes of +13.17% and +12.3%, respectively, compared to the previous year.

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Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Boston Scientific. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Boston Scientific is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Boston Scientific's current valuation metrics, including its Forward P/E ratio of 33.48. This represents a premium compared to its industry's average Forward P/E of 23.4.

It's also important to note that BSX currently trades at a PEG ratio of 2.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Medical - Products industry was having an average PEG ratio of 2.15.

The Medical - Products industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 38% echelons of all 250+ industries.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Boston Scientific Corporation (BSX) : Free Stock Analysis Report

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