Trade-Ideas: Boston Scientific (BSX) Is Today's "Water-Logged And Getting Wetter" Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Boston Scientific (BSX) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Boston Scientific as such a stock due to the following factors:
- BSX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $123.6 million.
- BSX has traded 9.7 million shares today.
- BSX traded in a range 206.5% of the normal price range with a price range of $0.44.
- BSX traded below its daily resistance level (quality: 31 days, meaning that the stock is crossing a resistance level set by the last 31 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.EXCLUSIVE OFFER: Get the inside scoop on opportunities in BSX with the Ticky from Trade-Ideas. See the FREE profile for BSX NOW at Trade-IdeasMore details on BSX: Boston Scientific Corporation develops, manufactures, and markets medical devices used in various interventional medical specialties worldwide. Currently there are 4 analysts that rate Boston Scientific a buy, no analysts rate it a sell, and 14 rate it a hold.The average volume for Boston Scientific has been 16.1 million shares per day over the past 30 days. Boston Scientific has a market cap of $15.0 billion and is part of the health care sector and health services industry. The stock has a beta of 1.49 and a short float of 3.1% with 3.52 days to cover. Shares are up 94.4% year to date as of the close of trading on Monday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Boston Scientific as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, solid stock price performance, expanding profit margins, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 103.6% when compared to the same quarter one year prior, rising from -$3,578.00 million to $130.00 million.
- Powered by its strong earnings growth of 103.98% and other important driving factors, this stock has surged by 106.29% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BSX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for BOSTON SCIENTIFIC CORP is currently very high, coming in at 71.81%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.18% trails the industry average.
- BOSTON SCIENTIFIC CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BOSTON SCIENTIFIC CORP swung to a loss, reporting -$2.87 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($0.44 versus -$2.87).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 1.3%. Since the same quarter one year prior, revenues slightly dropped by 1.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Boston Scientific Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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