What Happened?
Shares of medical device company Boston Scientific (NYSE:BSX) fell 9.4% in the afternoon session after Raymond James downgraded the stock to Outperform from Strong Buy, citing worries about the company’s growth prospects. The firm lowered its price target and estimates to reflect slower trends in Boston Scientific’s key growth areas, specifically U.S. electrophysiology and its Watchman device.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Boston Scientific? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Boston Scientific’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock dropped 13.9% on the news that the company reported fourth-quarter 2025 results that beat Wall Street estimates but provided a mixed forecast that concerned investors.
The medical device maker posted quarterly revenue of $5.29 billion and adjusted earnings per share of $0.80, surpassing analyst expectations for $5.27 billion in revenue and $0.78 in earnings. Despite the solid performance, investor attention shifted to the company’s outlook. While the full-year 2026 adjusted earnings forecast, with a midpoint of $3.46 per share, was in line with consensus, the guidance for the upcoming first quarter fell slightly short of Wall Street’s projections. This weaker near-term outlook appeared to overshadow the otherwise strong quarterly results, leading to a significant sell-off in the shares.
Boston Scientific is down 33.6% since the beginning of the year, and at $62.88 per share, it is trading 41.8% below its 52-week high of $108.14 from September 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Boston Scientific’s shares 5 years ago would now be looking at an investment worth $1,614.
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