55/100Is BSX-Boston Scientific a buy?
Friday 25 September 2026
Why now: The current print is $44.68, near the prior close, after a sharp multi-month decline caused in part by the operational disruption. The September 22 investigation update reduced the risk of an ongoing intrusion or confirmed customer-data compromise, but the earnings effect remains unresolved until the October 28 results update.
Upside: The supplied Wall Street consensus target is $65.20, implying 45.9% upside from the current $44.68 print.
Risks: Management has said the incident is likely to materially affect third-quarter and full-year 2026 results and make prior guidance unattainable. The price trend and industry-relative performance remain weak.
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Scorecard
| Scorecard | 55/100 | |
|---|---|---|
| Company Detail | BSX - Boston Scientific Corporation | |
| Price as at 24 September 2026 | $44.68 | |
| Market cap | $66.4B | |
| Quality and Fundamental Score (100) | ||
| Breakout / Early-Momentum /20 | 0/20 | |
| Rev/EPS Momentum /20 | 12/20 | |
| Business Quality /15 | 14/15 | |
| Balance Sheet /15 | 11/15 | |
| Valuation /10 | 8/10 | |
| Industry Relative Strength /10 | 2/10 | |
| Macro / Sector Tailwind /10 | 8/10 | |
| Growth | ||
| Cash runway | Cash generative | |
| Revenue YoY | +19.9% | |
| EPS YoY | +55.2% | |
| FCF YoY | +38.3% | |
| Gross margin | 69.0% | |
| Valuation & Trend | ||
| Trailing P/E | 18.0x | |
| Forward P/E | 13.6x | |
| RSI (14d) | 45 | |
| vs 50d SMA | -4.7% | |
| Support cushion | −4.3% | |
| Sentiment | ||
| Wall Street verdict | Aligned | |
| News tone | Quiet | |
| Dividend | — | |
How are these colored?
| Metric | Strong metrics | Solid metrics | Selective | Caution | Unfavourable |
|---|---|---|---|---|---|
| Overall score | ≥ 80 | 70-79 | 60-69 | 50-59 | < 50 |
| Business quality /15 | ≥ 12 | 10-11 | 8-9 | 6-7 | < 6 |
| Balance sheet /15 | ≥ 12 | 10-11 | 8-9 | 6-7 | < 6 |
| Market cap | ≥ $20B | $5B-$20B | $2B-$5B | $1B-$2B | < $1B |
| Cash runway | ≥ 3 yr or cash generative | 1.5-3 yr | 0.75-1.5 yr | 0.25-0.75 yr | < 0.25 yr |
| Revenue YoY | ≥ 15% | 5-15% | 0-5% | -5-0% | < -5% |
| EPS YoY | ≥ 20% | 5-20% | 0-5% | -5-0% | < -5% |
| FCF YoY | ≥ 10% | 1-10% | 0-1% | -5-0% | < -5% |
| Gross margin | ≥ 60% | 40-60% | 25-40% | 10-25% | < 10% |
| Trailing P/E | < 15 | 15-25 | 25-35 | 35-40 | > 40 or neg |
| Forward P/E | < 15 | 15-25 | 25-35 | 35-40 | > 40 or neg |
| RSI (14d) | 50-70 | 45-50 or 70-75 | 40-45 or 75-78 | 30-40 or 78-80 | < 30 or > 80 |
| vs 50d SMA | +2% to +15% | 0-2% or 15-25% | -2-0% or 25-35% | -3--2% or 35-40% | < -3% or > 40% |
| Support cushion | 2-10% above | 0-2% | 10-15% | 15-20% | price below support |
| Wall Street verdict | Aligned | — | Mixed | — | Disagrees |
| News tone | Positive | — | Neutral / Mixed | — | Negative |
| Dividend | Yield ≥ 2% & growing | Growing | Flat payer ≥ 1% | Low / flat | Cutting |
Detailed Analysis — Friday 25 September 2026
Michael F.
Jonathan Monson has been Executive Vice President and Chief Financial Officer since June 2025.
Receiver of capital expenditure: Yes: Hospitals and outpatient care providers invest in procedure capacity, clinical technology and device inventories, making Boston Scientific a direct beneficiary of medical capital spending and procedure growth.
Main customers
- Hospitals and health systems (They purchase devices used in cardiovascular, surgical, digestive, urology and neurological procedures.)
- Physicians and outpatient treatment providers (They use Boston Scientific therapies and procedure tools in specialty care settings.)
- Boston Scientific owns a diversified collection of medical-device franchises that address chronic diseases and procedures with durable clinical demand.
- Its 69.0% gross margin, $3.66 billion of annual free cash flow and 10.6% return on invested capital show that the underlying business was financially productive before the cyber incident.
- The long-term case depends on restoring normal execution without lasting customer, reimbursement or reputation damage.
Scores 55 out of 100. a mixed overall grade. Business quality, valuation, and sector fit scored highest. Balance sheet also helped. Earnings trend was fair but not a standout driver. Relative strength versus its industry and chart setup weighed on the total. The score is capped because the August 25 cybersecurity incident caused a global operating disruption, and the company said on September 8 that it is unlikely to meet its prior third-quarter and full-year 2026 sales-growth and adjusted earnings guidance. The share-price trend is also weak, with no confirmed recovery setup in the supplied technical data.
Component scores are on the scorecard above.
- The supplied daily technical snapshot is decisively weak: BSX is down 7.2% over 20 trading days and 15.2% over 90 trading days, with no confirmed breakout, no recent reclaim and a declining 200-day moving average flag.
- Industry relative strength is only 18 out of 100, meaning the shares have materially lagged the healthcare sector.
- Boston Scientific generated $20.07 billion of latest annual revenue, $2.89 billion of net income and $3.66 billion of free cash flow.
- Profitability is solid, with a 69.0% gross margin, 14.9% return on equity and a Piotroski score of 8, but leverage is meaningful at 2.13 times net debt to earnings before interest, taxes, depreciation and amortization, cash is only $539 million, and the share count rose 5.49% over five years.
- The immediate red flag is not the historical financial profile; it is the company-confirmed 2026 earnings disruption from the cybersecurity incident.
Cash runway: Cash generative (latest annual free cash flow is positive).
Upcoming (1–6 months)
- Third-quarter 2026 results and the updated financial outlook scheduled for October 28, 2026.
Ongoing
- Order fulfillment, manufacturing normalization, backlog reduction and any disclosure of incident-related costs, lost sales or litigation.
Risks
- The cybersecurity incident could cause a deeper revenue shortfall, higher remediation costs, customer disruption, regulatory scrutiny or litigation than currently known.
- Hospital purchasing pressure, reimbursement changes, clinical setbacks or tougher competition could reduce pricing power and procedure growth.
Breaks the thesis
- A material further reduction in the October 28 outlook, evidence of persistent lost customers or a new systems interruption would weaken the recovery case.