Boston Scientific (BSX) Is Today's Unusual Social Activity Stock - TheStreet

Trade-Ideas LLC identified

Boston Scientific

(

BSX

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Boston Scientific as such a stock due to the following factors:

  • BSX has 14x the normal benchmarked social activity for this time of the day compared to its average of 5.42 mentions/day.
  • BSX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $160.7 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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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 8.5 million shares per day over the past 30 days. Boston Scientific has a market cap of $22.4 billion and is part of the health care sector and health services industry. The stock has a beta of 1.12 and a short float of 3% with 3.78 days to cover. Shares are up 26.9% year-to-date as of the close of trading on Tuesday.

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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, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • This stock has managed to rise its share value by 33.27% over the past twelve months. 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 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 2450.0% when compared to the same quarter one year prior, rising from $4.00 million to $102.00 million.
  • BOSTON SCIENTIFIC CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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 reported poor results of -$0.10 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings ($0.91 versus -$0.10).
  • Net operating cash flow has significantly decreased to $60.00 million or 78.94% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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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