Boston Scientific CorpBSXDON'T BUYOct 21, 2026Stock price when the opinion was issued
As of Oct 21, 2026. Market Open.
Money's flowing into more growth industries and sectors at this point. A lot of defensive areas such as healthcare have been slowing down somewhat.
Share price is below 200-day MA, which is also falling -- technical structure looks weak. High-quality med-tech company, strong business. Guidance cut on Watchman stroke-reducing device, and that's hurt the stock price. Broken momentum. Need to at least see a basing pattern.
Tough investment over the past year. His research showed that organic growth at risk especially given its demanding multiple. Last quarter projected 6.5-8% organic growth, instead of 10-11%.
There will be a time for this stock going forward, but it's still losing market share to MDT, ABT, and JNJ.
He doesn't know the investor's specific situation, so he's reluctant to give particular advice. However, usually when an investment goes bad it's better to cut bait and move on. It's often better to put the sale proceeds to work in a more constructive idea.
Leading global medical device company -- cardiology, endoscopy, etc. Long term, will benefit from aging demographics and increased volume of procedures. Long-term, durable organic growth in earnings and revenue. However, seeing near-term technical weakness most likely due to high valuation. Share price has fallen below 200-day MA, which itself is starting to trend a bit lower.
In the space, he prefers some of the larger pharma names, and logistics companies such as MCK.
Healthcare space is continuing to do well. Makes less invasive devices for heart issues and chronic pain, and that's exactly where patient demand is moving. Improving stroke prevention device for those with irregular heartbeats. Financially solid. Strong margins support steady long-term growth. Aging population a tailwind. Ranks 8/10, sees ~26% upside with a price target of ~$128.
Continues to expand in the global market. No dividend.
When the price falls, we're all tempted to jump on the "great value". But if fundamentals fall at a faster rate than the price, it's lesser value. You have to look at the value proposition, not just the price.
Organic revenue growth was 10-12%, now 6.5-8%. Losing market share. Didn't execute, and premium valuation disappeared.