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West Pharmaceutical Services, Inc. WST is well poised for growth, backed by the robust Proprietary Products segment and sustained strength in research and development (R&D). However, foreign exchange volatility is a concern.

Shares of this Zacks Rank #3 (Hold) company have lost 12.8% year to date against the industry's 2.8% growth. The S&P 500 Index has increased 23.4% in the same time frame.

West Pharmaceutical, with a market capitalization of $22.78 billion, is a leading global manufacturer, engaged in the design and production of technologically advanced, high-quality, integrated containment and delivery systems for injectable drugs and healthcare products. Its earnings are anticipated to improve 2% over the next five years. The company delivered a trailing four-quarter average earnings surprise of 8.04%.

Boston Scientific’s BSX growth in the third quarter of 2024 was backed by its successful expansion of operations across different geographies outside the United States. Its recent acquisitions are expected to drive revenue growth in the long term. Meanwhile, headwinds, such as currency movements and dull macroeconomic conditions, raise concern for Boston Scientific.

In the past year, this Zacks Rank #3 (Hold) company’s shares have rallied 66.1% compared with the industry’s 21.4% growth and the S&P 500 composite’s 29.2% gain.

The renowned manufacturer of medical devices and products has a market capitalization of $128.21 billion. BSX beat on earnings in each of the trailing four quarters, delivering an average surprise of 8.29%.

Let’s delve deeper.

Key Tailwinds for BSX

Impressive Value-Adding Acquisitions: Boston Scientific’s impressive recent acquisitions have added numerous products with immense potential. This, in turn, should help boost the top line in the long term. The company’s recently completed strategic buyouts include a $3.7 billion acquisition of Axonics. This acquisition is aimed at expanding BSX’s differentiated technologies portfolio within Urology. Additionally, the company completed the acquisition of Silk Road Medical for $1.16 billion. This acquisition should help the company progress in vascular medicine, where Silk Road has revolutionized stroke prevention and the treatment of carotid artery disease.

International Expansion Continues: Boston Scientific successfully expands operations across different geographies outside the United States. The company is putting additional efforts to expand its foothold in the emerging markets (which are defined as all countries except the United States, Western and Central Europe, Japan, Australia, New Zealand and Canada) that hold strong growth potentials based on their economic conditions, healthcare sectors and global capabilities.

Despite geopolitical weaknesses in the third quarter of 2024, the emerging market registered sturdy growth, primarily banking on continued broad-based momentum across the company’s business and investment in this region. During this period, emerging markets' net sales grew nearly 16.8% year over year on an operational basis.

In Europe, the Middle East and Africa (EMEA), Boston Scientific is successfully expanding its base on the back of its diverse portfolio, new launches and commercial execution with healthy underlying market demand.

In the third quarter, EMEA sales grew 14.3% year over year on an operational basis, banking on above-market performance in Electrophysiology. In Asia Pacific, Boston Scientific is particularly registering strong growth in China, Japan, Australia and New Zealand. It also grew in the mid-teens despite recent volume-based procurement implementations.

Key Headwinds for BSX

Exposure to Currency Movement: Boston Scientific records 40% of its sales from the international market. Therefore, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the past few quarters. In the second quarter, the company had a 160 basis-point impact on revenues from unfavorable currency fluctuations.

Macroeconomic Headwinds Dent Growth: Difficult macroeconomic conditions, international conflicts, unstable financial market dynamics and volatility in the price and availability of goods and services are laying pressure on Boston Scientific’s profitability. With such sustained macroeconomic pressures, the company may struggle to keep its operating expenses in check.

In the third quarter of 2024, the company reported a 19.2% rise in the cost of products sold. Further, selling, general and administrative expenses rose 25.8%, resulting in a 123 basis point contraction in operating margin.

BSX’s Estimate Trend

The Zacks Consensus Estimate for 2024 earnings has increased 2.5% to $2.46 per share in the past 30 days.

The consensus estimate for 2024 revenues is pegged at $16.58 billion, which indicates a 16.4% increase from the year-ago reported numbers.

Key Picks

Some better-ranked stocks in the broader medical space are Haemonetics HAE, Globus Medical GMED and Penumbra PEN.

Haemonetics has an earnings yield of 5.02% compared with the industry’s 1.18%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.39%. Its shares have risen 6.3% compared with the industry’s 21.4% growth in the past year.

HAE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Globus Medical, carrying a Zacks Rank #2 at present, has a long-term estimated growth rate of 14.1%. Shares of the company have rallied 80.3% compared with the industry’s 15.7% growth. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%.

Penumbra, carrying a Zacks Rank #2 at present, has an estimated 2024 earnings growth rate of 33.5% compared with the industry’s 15.9%. Shares of Penumbra have risen 2.1% compared with the industry’s 15.7% growth over the past year. PEN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 10.54%.

Zacks Investment Research

Boston Scientific Corporation BSX recently announced favorable three-year primary endpoint data from the OPTION global clinical trial for its WATCHMAN FLX Left Atrial Appendage Closure (“LAAC”) device. The trial data provided clinical evidence indicating that LAAC with the WATCHMAN FLX device is safe and superior to oral anticoagulation (OAC) therapy for reducing the risk of long-term bleeding events in patients who have undergone an ablation.

The OPTION trial data were presented at the American Heart Association's Scientific Sessions 2024 and published in the New England Journal of Medicine.

BSX’s Likely Stock Trend Following the News

Following the announcement, shares of BSX moved north 4% to $90.45 yesterday. The company’s structural heart programs are building momentum, banking on the strong performance of the WATCHMAN LAAC device. The next-generation WATCHMAN FLX and FLX Pro are strongly capturing the global market. In the third quarter of 2024, WATCHMAN’s organic sales grew 18% year over year. Accordingly, we expect market sentiment to remain positive surrounding the announcement.

BSX currently has a market capitalization of $128.1 billion. It has an earnings yield of 17.1%, much higher than the industry’s 12.6%.

More on WATCHMAN FLX’s Favorable Trial Data

The trial met the primary safety endpoint of non-procedural major bleeding or clinically relevant non-major bleeding at 36 months. In line with this, the WATCHMAN FLX device was found to be superior to OAC. Notably, trial data showed high rates of procedural success in patients who had a WATCHMAN FLX implant after an ablation, which reinforced positive outcomes such as low rates of ischemic and hemorrhagic stroke within the trial population. These positive primary outcomes indicate that patients receiving the WATCHMAN FLX device can eliminate long-term medication use while maintaining stroke protection.

With this positive data, the company aims to expand the indication for the WATCHMAN FLX platform.

About OPTION Trial

The randomized, controlled OPTION trial included 1,600 patients enrolled across 114 sites in the United States, Europe and Australia. In the trial, approximately 60% of device patients had their WATCHMAN FLX implant 90-180 days following their ablation procedure. Nearly 40% of the other device patients had the two procedures performed concomitantly, with the WATCHMAN FLX implant taking place after the ablation.

The study compared the device with first-line OAC therapy, which included direct oral anticoagulants (DOAC) (95%) and warfarin (5%) for stroke risk reduction in patients with non-valvular atrial fibrillation following a cardiac ablation.

More on the News

In addition to the OPTION trial, the WATCHMAN technology is being evaluated against DOAC therapy in lower-risk patients within the CHAMPION-AF randomized trial. The latest-generation WATCHMAN FLX Pro LAAC device is similarly being studied in several clinical trials, including the SIMPLAAFY randomized controlled trial, which is evaluating a single-drug alternative to dual antiplatelet therapy as a post-procedural regimen.

Industry Prospects Favor BSX

According to a Precedence Research report, the global left atrial appendage closure devices market is projected to grow around $7.01 billion by 2034, at a compound annual growth rate of 14.1% from 2024 to 2034. The rising prevalence of atrial fibrillation and rising government initiatives contribute to the market's growth. Technological advancements are also promoting growth.

BSX’s Recent Development

The company recently acquired Axonics, Inc. at an equity value of $3.7 billion.

BSX’s Price Performance

In the past year, shares of BSX have risen 66.1% compared with the industry’s 21.4% growth.

BSX’s Zacks Rank and Key Picks

BSX currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Haemonetics HAE, Globus Medical GMED and ResMed RMD. While ResMed carries a Zacks Rank #1 (Strong Buy), Haemonetics and Globus Medical carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Haemonetics has an earnings yield of 5.02% compared with the industry’s 1.18%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.39%. Its shares have risen 1.8% compared with the industry’s 23.1% growth in the past year.

Estimates for Globus Medical’s 2024 EPS have remained constant at $2.84 in the past 30 days. Shares of the company have surged 60.6% in the past year compared with the industry’s growth of 32.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 12.1%. In the last reported quarter, it delivered an earnings surprise of 10.3%.

Estimates for ResMed’s fiscal 2025 EPS have risen 2.7% in the past 30 days. Shares of the company have surged 86.3% in the past year compared with the industry’s 32.1% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.

Zacks Investment Research

Boston Scientific Corporation BSX recently closed the acquisition of Axonics, Inc., a medical technology company focused on the development and commercialization of differentiated devices to treat urinary and bowel dysfunction. The deal, originally announced in January this year, enables Boston Scientific’s entry into sacral neuromodulation (SNM), a high-growth adjacency for its Urology business.

The company paid $71 cash per share to Axonics, representing an equity value of $3.7 billion and an enterprise value of $3.3 billion. The transaction is expected to be immaterial to adjusted earnings per share in 2024 and 2025 and accretive thereafter. However, on a GAAP basis, Boston Scientific anticipates the transaction to be less accretive or more dilutive due to amortization expenses and acquisition-related charges.

Predicting BSX Stock Movement Following the News

After the Nov. 15 announcement, shares of BSX jumped 3.3%, finishing at $90.45 in yesterday’s session. Boston Scientific is consistently gaining market share within its MedSurg segment. Within Urology, the Stone Management and Prostate Health franchises are growing well owing to the strong performances of Rezum and SpaceOAR. The Endoscopy business is also gaining from strong worldwide demand for its broad range of gastrointestinal and pulmonary treatment options. We expect the market sentiment toward BSX stock to remain positive surrounding this development.

Boston Scientific currently has a market capitalization of $128.21 billion. The company has an estimated 2024 earnings growth of 20% compared to the industry’s 11.4% growth. It delivered an earnings beat of 8.29%, on average, in the trailing four quarters.

Significance of Boston Scientific’s Latest Buyout

Irvine, CA-headquartered Axonics’ products are available in more than 20 countries. The portfolio includes SNM therapy for overactive bladder (OAB) and incontinence, which is a minimally invasive procedure that works by delivering mild electrical pulses to the sacral nerve to restore communication between the brain and the bladder. The company launched its first rechargeable SNM device for OAB in November 2019 and treated nearly 100,000 incontinence patients globally in 2023. Axonics reported net revenues of approximately $366 million last year, growing 34% over 2022 with attractive gross margins.

The latest acquisition is strategic and financially compelling for Boston Scientific, expanding its ability to offer clinically differentiated treatment options with well-established therapies in a high-growth adjacency. In the United States, the market for SNM is large and significantly underpenetrated, presenting a major opportunity for Boston Scientific to leverage its global reach and capabilities to accelerate the awareness and adoption of Axonics technologies.

Industry Prospects Favoring BSX

Per a research report, the global sacral nerve stimulation (SNS) market was valued at $1.6 billion in 2023 and is expected to witness a compound annual rate of 11.5% by 2030. The market growth is attributed to the increasing rates of overactive bladder conditions and the incidence of urge incontinence, including UTIs. Advancements in technology and increased awareness of SNS as an effective treatment option enhance its adoption.

Other Developments in Boston Scientific

This month, Boston Scientific announced that it has entered into a definitive agreement to acquire Cortex, Inc., an Ajax Health company. Cortex has developed the OptiMap System, which uses a basket catheter and proprietary algorithm to identify potential active AF (atrial fibrillation) sources, providing physicians with precise insights to efficiently deliver an individualized ablation strategy for their patients. The company expects to complete the transaction in the first half of 2025, subject to customary closing conditions.

BSX Stock Price Performance

In the past year, Boston Scientific shares have surged 66.1% compared with the industry’s growth of 21.4%.

BSX’s Zacks Rank and Key Picks

Boston Scientific currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Penumbra PEN, Haemonetics HAE and Globus Medical GMED, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Penumbra’s shares have risen 2.1% in the past year. Estimates for the company’s 2024 earnings per share have jumped 8.1% to $2.79 in the past 30 days. PEN’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.54%. In the last reported quarter, it posted an earnings surprise of 23.19%.

Estimates for Haemonetics’ fiscal 2025 earnings per share have jumped 0.4% to $4.59 in the past 30 days. Shares of the company have rallied 7.6% in the past year compared with the industry’s growth of 21.5%. HAE’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.82%. In the last reported quarter, it delivered an earnings surprise of 2.75%.

Estimates for Globus Medical’s 2024 earnings per share have increased 0.4% to $2.95 in the past 30 days. Shares of the company have surged 81.1% in the past year compared to the industry’s 23.4% growth. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%. In the last reported quarter, it delivered an earnings surprise of 27.69%.

Zacks Investment Research

Intelligent Bio Solutions Inc. INBS recently announced positive initial results from its Pharmacokinetic (PK) study. The study is important for supporting FDA 510(k) clearance of the company’s Intelligent Fingerprinting Drug Screening technology.

Per the PK study's data, the amount and rate of codeine in blood and saliva are mimicked by fingerprint sweat. Based on 95% confidence level statistical comparisons, the study effectively demonstrated that fingerprint sweat offers a dependable sample matrix for drug detection, displaying quantitative PK data well aligned with blood.

Likely Trend of INBS Stock Following the News

Following the news annoucement, shares of the company have moved nearly 12.4% south to $1.48 on Friday’s closing . In the year-to-date period, INBS shares have plunged 63.5% compared with the industry’s 10.2% decline. The S&P 500 increased 23.4% in the same time frame.

Meanwhile, INBS currently has a market capitalization of $6.5 million.