What’s the Story behind Boston Scientific’s Recent Stock Rally?
Boston Scientific (BSX) closed at $28.86 on September 26, 2017, reaching a high of $28.94 per share on the day. BSX stock is trading above its 50-day moving average of $27.69 as well as its 200-day moving average of $26.76.
Boston Scientific stock reported its 52-week low of $19.67 on December 1, 2016. BSX stock’s 52-week high of $29.40 was reported on September 11, 2017, triggered by several product launches and key positive developments at the company that boosted investor confidence.
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Boston Scientific reported its 2Q17 earnings results on July 27, 2017. The company reported strong sales growth despite the negative impact of Lotus recalls. Boston Scientific also made an upward revision to its fiscal 2017 guidance. BSX stock, however, lost ~1.4% on the day. For a summary of BSX’s 2Q17 results, please read Boston Scientific’s Stellar 2Q17 Results: Key Highlights.
Over the last one-month period, BSX stock has gained ~8%. The stock’s three-month return stands at ~3.8%. Over the last six months, BSX stock has risen ~17.4%.
On September 27, 2017, Boston Scientific’s peers Becton Dickinson (BDX), Medtronic (MDT), and Zimmer Biomet Holdings (ZBH) generated returns of about 8.1%, -11.3%, and -9.4%, respectively, over the last 12 months.
Comparisons with industry and market performances
Boston Scientific’s (BSX) stock price has risen ~21.7% over the past one-year period. BSX stock has shown better performance than the market, as represented by the SPDR S&P 500 ETF Trust (SPY), during the same period. SPY’s one-year return stands at ~15.8%.
BSX stock is showing a bullish trend, triggered by the company’s strong growth, recent product launches, and acquisitions that are driving the company’s fundamentals.
On a year-to-date basis, Boston Scientific has registered a stellar return of ~33.4%, which compares to ~25% and 11.8% returns for the US medical device sector and the broader market, as represented by the iShares US Medical Devices (IHI) and SPY, respectively.