Is Now An Opportune Moment To Examine Boston Scientific Corporation (NYSE:BSX)?

Published
July 01, 2022
NYSE:BSX
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Boston Scientific Corporation (NYSE:BSX) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$47.10 at one point, and dropping to the lows of US$35.24. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Boston Scientific's current trading price of US$37.27 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Boston Scientific’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Boston Scientific

What's the opportunity in Boston Scientific?

Good news, investors! Boston Scientific is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $48.46, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that Boston Scientific’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What does the future of Boston Scientific look like?

earnings-and-revenue-growth
NYSE:BSX Earnings and Revenue Growth July 1st 2022

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Boston Scientific's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since BSX is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on BSX for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BSX. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

If you want to dive deeper into Boston Scientific, you'd also look into what risks it is currently facing. To that end, you should learn about the 3 warning signs we've spotted with Boston Scientific (including 1 which is significant).

If you are no longer interested in Boston Scientific, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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