Boston Scientific, the leader in the medical products industry group, climbed above an early entry Tuesday. The rise came just one day after Boston Scientific stock cleared another early buy point.
In morning trading Tuesday, the health care stock cleared a trendline connecting the highs from its price peak on Feb. 5. The trendline provides a buy point around 103, or basically Monday's high. This is the second early entry for Boston Scientific, after the stock climbed back above the 50-day moving average (at around 101.50) on Monday, according to IBD's MarketSurge.
The relative strength line is already making new highs, a bullish sign for the stock.
The stock is still forming a flat base with a 107.17 buy point, which would be yet another entry into the medical products leader.
Boston Scientific Shares Already Nearly Doubled
Boston Scientific shares have nearly doubled since they broke out of an initial-stage base in November 2023 at a 55.38 buy point. Yet, the current base is still considered early stage because the stock formed only one proper pattern during that entire run: a flat base from November to the breakout Jan. 7-8.
Still, it would be difficult for the stock to make another big run. So investors may have to settle for a more normal 20%-25% gain from the next breakout.
Boston Scientific has the highest Composite Rating of 126 companies in the medical products industry group. It is also the largest company in the group by market capitalization, north of $153 billion, with 2024 sales of $16.7 billion.
The company provides minimally invasive technologies for coronary artery disease and aortic valve conditions. It also makes devices for endoscopy and urology, such as kidney stones, and an implantable device for chronic pain, among other products.
More than 60% of its revenue comes from U.S. operations, with the rest from China, Japan, India and other countries, according to FactSet.
Q4 Results Beat Expectations
In February, the company beat Q4 estimates. Earnings rose 27% to 70 cents a share. Sales grew more than 22% on an as-reported basis and 19.5% organically to $4.56 billion. EPS grew 19%, 17% and 26% while sales rose 14%, 19% and 22% the previous three quarters.
According to the IBD Stock Checkup, the medical products leader has a three-year EPS growth rate of 16% and three-year sales growth rate of 12%.
IBD suggests stocks with average true range (ATR) of 3% or lower. The average true range is a metric available on MarketSurge that gauges the characteristic breadth of a stock's behavior.
Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
Boston Scientific has an ATR of 2.89%.
