I've always wanted to like this company. In fact, there was a point when I believed Boston Scientific was one of the best turnaround candidates in the med-tech sector, given that its medical devices are used in a range of interventional medical specialties. But uncertainty about the company's growth potential kept me at bay.
It's true that CEO Mike Mahoney has advanced the company past some lingering problems. And there are signs that device growth has stabilized and restored the strength of this operation. There's still, however, residue from billions of dollars spent on acquisitions that have produced little-to-no growth, which can't be ignored. The Street, meanwhile, has taken a different stance.
Despite this track record, Boston Scientific stock has been one of the best performers in the sector, soaring well over 100% in the trailing twelve months. Once again the Street is showing strong confidence that this company can outperform in 2014. I don't mind betting on a long-shot every now and then. But this isn't the first time these bets were placed. It wasn't long ago when this company was considered a "sure thing."
[Read: Biotech Stock Mailbag: Cell Therapeutics and the Ariad Hostile React-o-Meter Meltdown]
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV