Wait for a dip to buy Boston Scientific stock

We believe there is not much to fear in BSX stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive. Here is our multi-factor assessment.

But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio and is designed to reduce stock-specific risk while giving upside exposure

Let’s get into details of each of the assessed factors but before that, for quick background: With $152 Bil in market cap, Boston Scientific provides medical devices for interventional specialties, including diagnosis and treatment of gastrointestinal, pulmonary, urological, pelvic, cardiovascular, rhythm, and neurological conditions.

[1] Valuation Looks Very High

This table highlights how BSX is valued vs broader market. For more details see: BSX Valuation Ratios

[2] Growth Is Very Strong

• Boston Scientific has seen its top line grow at an average rate of 13.1% over the last 3 years
• Its revenues have grown 19% from $15 Bil to $18 Bil in the last 12 months
• Also, its quarterly revenues grew 20.9% to $4.7 Bil in the most recent quarter from $3.9 Bil a year ago.

This table highlights how BSX is growing vs broader market. For more details see: BSX Revenue Comparison

[3] Profitability Appears Moderate

• BSX last 12 month operating income was $3.2 Bil representing operating margin of 18.5%
• With cash flow margin of 21.7%, it generated nearly $3.8 Bil in operating cash flow over this period
• For the same period, BSX generated nearly $2.0 Bil in net income, suggesting net margin of about 11.6%

This table highlights how BSX profitability vs broader market. For more details see: BSX Operating Income Comparison

[4] Financial Stability Looks Strong

• BSX Debt was $12 Bil at the end of the most recent quarter, while its current Market Cap is $152 Bil. This implies Debt-to-Equity Ratio of 7.7%
• BSX Cash (including cash equivalents) makes up $725 Mil of $40 Bil in total Assets. This yields a Cash-to-Assets Ratio of 1.8%

[4] Downturn Resilience Is Weak

BSX has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• BSX stock fell 25.2% from a high of $47.10 on 20 April 2022 to $35.24 on 14 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 12 December 2022
• Since then, the stock increased to a high of $107.76 on 23 July 2025 , and currently trades at $102.64

 
2020 Covid Pandemic

• BSX stock fell 43.5% from a high of $45.71 on 9 January 2020 to $25.83 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 2 August 2021

 
2008 Global Financial Crisis

• BSX stock fell 70.5% from a high of $18.59 on 30 January 2007 to $5.48 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 2 November 2015

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read BSX Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.