A Strong Growth Profile Gives Boston Scientific Corp. (BSX) a Favorable Outlook

Core Insights - Hardman Johnston Global Advisors reported underperformance in its portfolio for Q3 2025, with a return of 5.02% net of fees, compared to 7.62% for the MSCI AC World Net Index [1] Company Overview - Boston Scientific Corporation (NYSE:BSX) is highlighted as a key stock in the investor letter, operating in the MedSurg and Cardiovascular segments of the medical device industry [2] - As of December 24, 2025, Boston Scientific's stock closed at $96.13 per share, with a market capitalization of $142.51 billion [2] Performance Analysis - Boston Scientific experienced a one-month return of -4.78% but gained 5.56% over the last 52 weeks [2] - The company was identified as a significant driver of underperformance within the healthcare sector, alongside Vertex Pharmaceuticals [3] Market Context - The Trump administration's Section 232 tariff investigation into medical devices has increased macroeconomic uncertainty, but Boston Scientific is well-positioned to manage potential tariffs due to its diverse supply chain and increased U.S. manufacturing footprint post-COVID [3] - The company has strong pricing power and has largely mitigated tariff impacts thus far [3] - The market is witnessing a rotation from medical devices to pharmaceuticals/biotech, influenced by recent deals such as the one between Pfizer and the Trump administration [3] Growth Prospects - Boston Scientific's diversified growth profile across various franchises, including cardiology, electrophysiology, endoscopy, and urology, supports a favorable outlook [3] - The introduction of Farapulse, a pulsed-field ablation technology, is expected to drive significant growth in the electrophysiology segment [3] - Management has set new long-term targets of 10% organic revenue growth, 50 basis points of annual margin expansion, and double-digit EPS growth through 2028, with a strong track record of exceeding previous targets [3]