Is BOSTON SCIENTIFIC CORP (NYSE:BSX) following the Minervini trend for explosive growth?

In this article we will dive into BOSTON SCIENTIFIC CORP (NYSE:BSX) as a possible candidate for growth investing. Investors should always do their own research, but we noticed BOSTON SCIENTIFIC CORP showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

Minervini Trend Template Analysis.

BSX checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Looking into the high growth metrics of BSX

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. BSX scores a 6 out of 10:

Earnings Momentum

• The recent financial report of BSX demonstrates a 33.93% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• BSX shows accelerating EPS growth: when comparing the current Q2Q growth of 33.93% to the previous quarter Q2Q growth of 27.27%, we see the growth rate improving.
• EPS acceleration happened 3 quarters in a row.
• Over the past year, BSX has demonstrated 26.17% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With consistent quarter-to-quarter (Q2Q) revenue growth of 20.93%, BSX exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• BSX has seen a 4.79% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• BSX has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Profitability & Financial Strength

• With positive growth in its operating margin over the past year, BSX showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• The profit margin of BSX has seen steady growth over the past year, signaling improved profitability.
• BSX has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• With a Debt/Equity ratio of 0.41, BSX demonstrates prudent financial management.

Institutional Confidence & Market Strength

• BSX demonstrates a balanced ownership structure, with institutional shareholders at 93.1%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• BSX has exhibited strong Relative Strength(RS) in recent periods, with a current 90.9 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

Why is BSX a setup?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for BSX is 6:

Although BSX has an excellent technical rating, the quality of the presented setup is not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Check the latest full technical report of BSX for a complete technical analysis.

Concluding

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.