What’s Next For Boston Scientific Stock After Outperforming During The 2022 Inflation Shock?

Boston Scientific stock (NYSE: BSX) currently trades at $51 per share, roughly 30% above its level in March 2021, and it now seems to be fully valued. Boston Scientific
BSX
saw its stock trading at around $37 in late June 2022, just before the Fed started increasing rates, and is now 36% above that level. The stock has gained 31% since September 2022 compared to the S&P 500, which gained about 13% during this period. The outperformance of BSX stock over the recent past can be attributed to its upbeat Q1 performance and raised outlook for 2023, driven by its new product launches. The notable rise in Boston Scientific’s revenues in the recent past has also contributed to the stock’s outperformance.

BSX stock is already trading above its pre-inflation shock level, and we believe that it doesn’t have much room for growth in the near term. We estimate Boston Scientific’s valuation to be around $52 per share, close to its current market price. This is because the positives appear to have been priced in the stock, and it’s now trading at a valuation multiple of 26x expected forward earnings of $1.97 on a per share and adjusted basis, higher than its last three-year average of about 23x.