Boston Scientific Corp (NYSE:BSX) Emerges as a Top Growth Stock with Strong Technical Breakout Potential

Boston Scientific Corp (NYSE:BSX) has become a top choice in a screen focused on finding strong growth stocks with promising technical breakout patterns. This method blends fundamental and technical analysis, looking for companies with steady earnings growth, good profitability, and sound financials, along with positive price movements. The goal is to identify stocks ready for upward movement, using both their business performance and market trends.

Fundamental Strength: A Growth Leader in Medical Devices

Boston Scientific’s financial profile fits well with the standards for growth investing, as described in our introduction to growth investing. The company’s financials show several important strengths:

• Growth Metrics:

  • Revenue increased by 21.45% over the past year, with a 9.30% compound annual growth rate (CAGR) over recent years.
  • Earnings per share (EPS) rose by 26.91% in the latest fiscal year, with an expected 12.43% annual growth rate ahead.
  • The company’s growth is speeding up, pointing to better efficiency and higher demand.

• Profitability:

  • Boston Scientific has an 18.85% operating margin, doing better than 91.44% of its competitors in the Health Care Equipment & Supplies industry.
  • Return on invested capital (ROIC) is 7.60%, placing it in the top 15% of the sector.

• Financial Health:

  • While liquidity ratios (current and quick ratios) are lower than industry averages, the company keeps a reasonable debt-to-equity ratio of 0.47 and a solid Altman-Z score of 6.18, showing low risk of financial trouble.

For more details on the company’s fundamentals, see the full fundamental analysis report.

Technical Setup: A Breakout in Progress

From a technical view, Boston Scientific’s stock shows a strong setup, scoring 9/10 on ChartMill’s technical setup rating. Key points include:

• Trend Strength: Short-term and long-term trends are positive, with the stock above its 20-day, 50-day, 100-day, and 200-day moving averages.
• Trading Near Highs: The stock has moved between $101.56 and $108.94 over the past month, with less volatility as it nears a possible breakout.
• Support and Resistance Levels:
  • The next resistance is between $106.77 and $107.76, and a move above this could mean more gains.
  • Strong support is near $102.40, offering a clear stop-loss level for traders.
• Relative Strength: The stock has done better than 81% of the broader market and 83% of its industry peers over the past year.

The technical analysis report provides more insights, including volume trends and institutional activity.

Why This Combination Matters

The mix of strong fundamentals and a positive technical pattern is key for growth investors. As explained in our growth investing primer, companies with rising earnings and revenue growth are more likely to keep gaining value. When paired with a technical breakout, it signals that the market sees the company’s potential, raising the chance of further growth.

Boston Scientific demonstrates this well: its leadership in medical devices (especially in cardiology, neuromodulation, and endoscopy) sets it up for long-term success, while its stock’s technical behavior reflects strong investor confidence.

Find More Growth Stocks with Strong Setups

For investors looking for similar opportunities, our Strong Growth Stocks with Good Technical Setup Ratings screen offers a selected list of high-potential stocks.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.