Trade-Ideas: Boston Scientific (BSX) Is Today's Post-Market Laggard Stock

Trade-Ideas LLC identified Boston Scientific (BSX) as a post-market laggard candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Boston Scientific

(

BSX

) as a post-market laggard 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 $224.4 million.
  • BSX is down 2.1% today from today's close.

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More details on BSX:

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. The company operates in three segments: Cardiovascular, Rhythm Management, and MedSurg. Currently there are 14 analysts that rate Boston Scientific a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Boston Scientific has been 9.1 million shares per day over the past 30 days. Boston Scientific has a market cap of $25.3 billion and is part of the health care sector and health services industry. The stock has a beta of 1.01 and a short float of 3% with 2.77 days to cover. Shares are up 40.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Boston Scientific as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, BSX's share price has jumped by 42.08%, exceeding the performance of the broader market during that same time frame. Although BSX had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • The revenue growth significantly trails the industry average of 37.3%. Since the same quarter one year prior, revenues slightly increased by 2.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • BSX's debt-to-equity ratio of 0.91 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.73 is weak.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 560.5% when compared to the same quarter one year ago, falling from $43.00 million to -$198.00 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, BOSTON SCIENTIFIC CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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