When screening for stocks that offer sustainable growth without demanding excessive valuation premiums, the “Affordable Growth” approach sits firmly in the crosshairs. This strategy targets companies that combine solid growth rates with reasonable valuations and strong underlying fundamentals. In practice, that means filtering for stocks with a ChartMill Growth rating of 7 or higher, while also demanding a Valuation score above 5, ensuring the growth isn’t priced to perfection. Additionally, decent Health and Profitability ratings are required to confirm the company is well-run and financially sound.
One stock emerging from this screen is Boston Scientific Corp (NYSE:BSX), a diversified medical device maker with a broad portfolio spanning interventional cardiology, endoscopy, urology, and neuromodulation.
<img src="https://www.chartmill.com/images/artgen/2026-04-28T49800333797618-BSX-ss.jpg" width="800" height="450" alt="Boston Scientific chart" style=“display:block; margin:20px auto; max-width:100%; height:auto;”/>
Growth & Valuation: The Core of Affordable Growth
Meeting the affordable growth criteria first requires convincing evidence of both growth and reasonable pricing.
Boston Scientific scores a 7 out of 10 on its ChartMill Growth rating, which is solidly above the screen’s minimum threshold of 7. The fundamental report backing this rating shows that the company has delivered consistent, double-digit expansion in both revenue and earnings over recent years:
- EPS growth: The Earnings Per Share grew by 14.81% over the past year and has averaged a very strong 26.01% annually over the prior periods.
- Revenue growth: The top line expanded by 17.44% last year, with a five-year average growth rate of 15.16% per year.
Forward-looking estimates further support the thesis: EPS is expected to grow at an average rate of 13.09% over the coming years, while revenue is projected to increase by 10.44% annually. Although these future growth rates decelerate from the recent past, they still reflect robust momentum for a company of BSX’s size.
On the valuation side, BSX earns a ChartMill Valuation rating of 6 out of 10, which satisfies the screen’s minimum of 5. While its trailing Price/Earnings ratio of 19.34 might appear slightly elevated in isolation, context matters. Remarkably, that P/E is cheaper than 79.68% of peers in the Health Care Equipment & Supplies industry, and it also sits below the S&P 500’s average P/E of 27.15. The forward P/E drops further, to 15.19, again well below the S&P 500 forward average of 22.12. Valuation multiples like the Enterprise Value to EBITDA and Price/Free Cash Flow also confirm BSX trades at a discount to the vast majority of its industry peers.
The PEG ratio (which adjusts the P/E for earnings growth) indicates a fair valuation given the anticipated expansion. In short, BSX offers a growth profile that is not priced to perfection, making it a textbook example of growth at a reasonable price.
Profitability & Health: The Quality Backstops
The affordable growth screen also demands that candidates show decent Health and Profitability scores to ensure the growth is backed by operational strength.
Profitability (rating: 9 out of 10) is where BSX truly shines. The company sports excellent margins, a Gross Margin of 69.01%, an Operating Margin of 19.92%, and a Profit Margin of 14.44%, each better than the vast majority of its industry peers. Return metrics, including Return on Equity (11.96%) and Return on Invested Capital (8.70%), also rank highly. This means every dollar reinvested in the business is generating meaningful returns, a sign of high-quality management and a defensible competitive moat.
Health (rating: 7 out of 10) is solid as well. The Altman-Z score of 3.78 indicates a very low risk of bankruptcy, and the Debt to FCF ratio of 3.13 (among the best in the industry) suggests the company can pay off its debts with free cash flow in just over three years. The Debt to Equity ratio of 0.46 confirms that BSX is not overly leveraged. While the current and quick ratios are in line with industry norms, the company’s strong solvency and cash flow generation mitigate any short-term liquidity concerns.
Analyst & Market Context
The broader market backdrop is also supportive: the S&P 500 long-term and short-term trends are both positive. Within this environment, Boston Scientific’s combination of strong profitability, healthy balance sheet, and still-compelling growth prospects keeps it on the radar for investors practicing an affordable growth strategy.
Fundamental analysis of BSX in deeper detail is available on its fundamental analysis page, where users can explore the full breakdown of each rating component.
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This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your financial situation before making any investment decisions.