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Behind Boston Scientific’s Recent Stock Performance

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BSX’s stock performance

Boston Scientific (BSX) was trading at $26.35 on May 4, 2017, as compared to its 50-day moving average of $24.93 and its 200-day moving average of $23.38.

While market conditions have been challenging for the past few years, Boston Scientific has witnessed good stock returns, registering strong growth over the past few quarters. After its latest earnings results on April 27, 2016, the stock gained ~0.8%.

On May 4, 2017, Boston Scientific was trading ~18.5% above its 52-week low of $15.70 on December 1, 2016. Boston Scientific was trading at its 52-week high of $26.60 on May 2, 2017.

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On February 23, 2017, Boston Scientific announced the recall of its Lotus range of devices due to a manufacturing defect. The development led to a more than 7% drop in its stock price. On March 30, 2017, Boston Scientific announced its latest acquisition of Symetis, after which the stock witnessed a gain of ~0.7%.

As of May 4, 2017, peers Abbott Laboratories (ABT), Stryker (SYK), and Edwards Lifesciences (EW) have generated returns of 5.3%, 6.9%, and 4.6%, respectively, over the past 12 months.

Comparisons with industry and market performance

Boston Scientific stock has returned ~20.2% in the past 12 months. It has outperformed the market as represented by the S&P 500 Index, which has returned ~15.7% in the same period. However, the Health Care Select Sector SPDR ETF (XLV) has returned ~8.9% in the past 12 months.

Boston Scientific’s stock performance can also be compared to the performance of the US medical device sector, which is represented by the iShares US Medical Devices ETF (IHI). Boston Scientific has returned ~21.8% on a YTD year-to-date basis, as compared to the 6.7% and 18.5% YTD returns generated by the market and IHI, respectively.

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