Boston Scientific Stock (NYSE: BSX) is down 3% in one month, compared to the -5% return of the broad S&P500 index. The company reported mixed Q4 results last month, with revenue down but earnings missing consensus estimates. Still, the BSX stock remained higher due to better-than-expected guidance for 2023. However, we believe BSX stock is fully valued.
Boston Scientific’s Revenue $11.2 billion in the fourth quarter of 2022, reflecting an increase of 3.7% year-on-year, driven by growth in both its segments – Cardiovascular and MedSurge. The company is benefiting from market share gains for its left atrial appendage closure device — Watchman — with sales expected to grow 22% annually to $1.0 billion in 2022, compared to just $829 million in 2021 and $324 million in 2020 . Boston Scientific also sees strong sales growth in electrophysiology, with biologicals growing 18% in 2022, and this trend is expected to continue in the near term.
The company guides its sales to grow between 5% and 7% in 2023 and its adjusted EPS to be between $1.86 and $1.93. It expects operating margin improvement of 50 basis points in 2023. Our model considers the company’s mid-term guidance. Single-digit top-line growth and low double-digit bottom-line growth, partially driven by lower operating expenses.
But, given the valuation, at its current level of $47, the BSX stock is already trading at 24x its past three-year average of $1.92 (which is at the high end of the guided range). is aligned, meaning that the BSX stock is fully valued. we guess Boston Scientific Evaluation About $49 per share, slightly above the current market price. Due to expected growth in operating margin in the coming years, this represents a 25x forward P/E multiple, which is slightly above its aforementioned historical average.
While it may be gone, 2020 has produced several pricing anomalies that could provide attractive trading opportunities. For example, you’d be surprised how counter-intuitive the stock valuations are for Pfizer vs. Merck. \n\nBased on the theme of the article, \”whereas
The BSX stock is up 6% over the past twelve months despite high inflation and rising interest rates. But can it go downhill from here? Compare declines in previous market crashes to see how far Boston Scientific stock can go. Here is the performance summary of all the stocks in the past market crashes.
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| Return | March 2023 mtd [1] |
2023 YTD [1] |
2017-23 Total [2] |
| bsx return | 0% | 1% | 116% |
| S&P 500 Return | -1% | 2% | 75% |
| Trefis Multi-Strategy Portfolio | 0% | 7% | 237% |
[1] Month-to-date and Year-to-date as of 3/2/2023
[2] Cumulative Total Return since the end of 2016
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