What’s Driving Boston Scientific Stock Upward

On April 3, 2018, Boston Scientific stock closed at $27.46, up ~2.3% from the previous day. The stock is trading higher than its 50-day moving average of $27.31 and lower than its 200-day moving average of $27.49. As of April 4, 2018, Boston Scientific’s 52-week low of $24.29 had been reached almost a year earlier, on April 6, 2017. The stock reached a 52-week high of $29.93 on October 23, 2017.

On April 3, 2018, BSX stock rose ~2.3%, triggered by the announcement of Boston Scientific’s acquisition of Securus Medical, which should enhance its electrophysiology portfolio. Over the last month, BSX stock has gained ~2.6%, and so far this year, BSX stock has risen ~11%. The stock has been on an uptrend, driven by a number of strategic acquisitions undertaken by the company in 1Q18. On March 21, 2018, Boston Scientific announced the acquisition of NxThera, advancing its urology and pelvic health business. On March 5, 2018, BSX stock gained ~2.4% on the news of Boston Scientific’s acquisition of EMcision, boosting the company’s endoscopy business.

Over the last 12 months, BSX stock has risen ~11.5%, and over the last six months, it has fallen 5.6%. At the end of 2017, the stock fell following news of the delay of its Lotus device relaunch. Lotus was recalled in February 2017. The stock, however, has recovered strongly recently thanks to key product launches, strategic acquisitions, rating upgrades, and the company’s strong performance.

In comparison, as of April 4, 2018, the iShares US Medical Devices ETF (IHI) (which represents the medical device industry) had risen ~21.4% over the last year, and the S&P 500 had risen ~11.1%. Peers Medtronic (MDT), Abbott Laboratories (ABT), and Edwards Lifesciences (EW) had returned -2.4%, 34.7%, and 46.8%, respectively.