Boston Scientific moves up marginally
Boston Scientific (BSX) was the biggest gainer among the large caps of the iShares U.S. Medical Devices ETF (IHI). BSX rose by 0.8%. The stock moved up on the news that Boston Scientific will participate in the Goldman Sachs Global Healthcare Conference on June 9 in Rancho Palos Verdes.
The above graph reflects the performance of Boston Scientific in comparison with the SPDR S&P 500 ETF (SPY) and the iShares U.S. Medical Devices ETF in May so far. Boston Scientific has outperformed both with a return of 2.9%. SPY and IHI have returned 1.5% and 1.7%, respectively.
Boston Scientific closed at $22.56 and was trading above the 20-day moving average. The stock has moved up by 22.3% on a year-to-date basis. Only Edwards Lifesciences (EW) and St Jude Medical (STJ) have higher year-to-date returns of 25.9% and 26.0%, respectively, within the large-cap stocks of IHI, which has 13 large-cap stocks in its portfolio. However, the relative strength index (or RSI) of 68 indicates that the stock is moving into an overbought situation temporarily. As of May 26, 2016, the stock traded at a 2016 forward price-to-earnings (or PE) multiple of ~20.7x. Boston Scientific has a book value of $4.77 per share. At its current price, the stock is trading at a price-to-book value of ~4.7x.
The consensus 12-month target price for Boston Scientific is $24.50 with 21 analysts recommending the stock as a “buy” and seven analysts recommending a “hold.”
Intuitive was the worst performer within IHI’s large caps
Intuitive Surgical (ISRG) was the worst performer within the large-cap stocks of the iShares U.S. Medical Devices ETF (IHI). It fell by 0.9% on the news that two insurance companies allege that Intuitive Surgical failed to reveal more than 700 injury claims when it applied for liability coverage. However, the latest report suggests that it had settled the claim with one insurance company but still faces a lawsuit from the Illinois Union Insurance Company. Intuitive Surgical closed at $637.20 and was trading above its 20-day moving average. The stock has moved up by 16.7% on a year-to-date basis. Intuitive Surgical has a weight of 4.3% in IHI’s portfolio.