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

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·3 min read
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Boston Scientific Corporation (NYSE:BSX) maintained its current share price over the past couple of month on the NYSE, with a relatively tight range of US$41.79 to US$45.88. However, does this price actually reflect the true 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.

View our latest analysis for Boston Scientific

Is Boston Scientific still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 7.4% below my intrinsic value, which means if you buy Boston Scientific today, you’d be paying a fair price for it. And if you believe the company’s true value is $46.64, then there isn’t much 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.

What does the future of Boston Scientific look like?

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 98% 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 conviction to buy should the price fluctuates below the true 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 optimistic prospect 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.

If you want to dive deeper into Boston Scientific, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 3 warning signs for Boston Scientific you should know about.

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.

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 (at) simplywallst.com.