Is BOSTON SCIENTIFIC CORP (NYSE:BSX) suited for high growth investing?

BOSTON SCIENTIFIC CORP (NYSE:BSX) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:BSX.

Technical Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall BSX gets a technical rating of 10 out of 10. Both in the recent history as in the last year, BSX has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, BSX did better than 93% of all other stocks. We also observe that the gains produced by BSX over the past year are nicely spread over this period.
• BSX is part of the Health Care Equipment & Supplies industry. There are 188 other stocks in this industry. BSX outperforms 91% of them.
• BSX is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so BSX slightly outperforms the market at the moment.
• In the last month BSX has a been trading in the 93.29 - 105.57 range, which is quite wide. It is currently trading near the high of this range.

Check the latest full technical report of BSX for a complete technical analysis.

Why is BSX a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. BSX scores a 7 out of 10:

Besides having an excellent technical rating, BSX also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 106.11. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 101.84, a Stop Loss order could be placed below this zone.

Assessing Growth for BSX

ChartMill employs its own High Growth Momentum Rating (HGM) system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth and profitability factors, such as EPS and revenue growth, as well as accelleration, surprises and revision history. BSX has earned a 6:

Explosive Earnings Growth

• BSX has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 27.27% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• Accelerating EPS growth for BSX: the current Q2Q growth of 27.27% exceeds the previous quarter Q2Q growth of 26.0%.
• Sales acceleration happened 3 quarters in a row.
• BSX has experienced 22.44% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• BSX has experienced 22.44% q2q revenue growth, indicating a significant sales increase.
• BSX shows accelerating Sales growth: when comparing the current Q2Q growth of 22.44% to the previous quarter Q2Q growth of 19.34%, we see the growth rate improving.
• Sales acceleration happened 3 quarters in a row.
• The average next Quarter EPS Estimate by analysts was adjusted by 4.73%, reflecting the evolving market expectations for the company's EPS growth.
• BSX has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Profitability & Financial Strength

• BSX has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• The profit margin of BSX has seen steady growth over the past year, signaling improved profitability.
• BSX has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• At a Debt/Equity ratio of 0.41, BSX seems well-positioned to sustain growth while keeping debt in check.

Market Strength & Institutional Confidence

• With 93.1% of the total shares held by institutional investors, BSX showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• BSX has achieved an impressive Relative Strength (RS) rating of 93.8, showcasing its ability to outperform the broader market.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.