Should You Investigate Boston Scientific Corporation (NYSE:BSX) At US$77.00?

Today we're going to take a look at the well-established Boston Scientific Corporation (NYSE:BSX). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The recent jump in the share price has meant that the company is trading around its 52-week high. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an 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 the opportunity still exists.

View our latest analysis for Boston Scientific

What's The Opportunity In Boston Scientific?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 11.85% above our intrinsic value, which means if you buy Boston Scientific today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $68.84, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Boston Scientific’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Boston Scientific?

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. With profit expected to grow by 93% over the next couple of years, the future seems bright for Boston Scientific. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? BSX’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on BSX, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So while earnings quality is important, it's equally important to consider the risks facing Boston Scientific at this point in time. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Boston Scientific.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com