Core Insights - Boston Scientific (BSX) and Resmed (RMD) are significant players in the global medical devices market, with market capitalizations of $142.4 billion and $35.72 billion, respectively [2] - The medical devices market is projected to grow at nearly 7% CAGR from 2025 to 2030, prompting an evaluation of investment opportunities in both companies [3] Boston Scientific Overview - Boston Scientific is experiencing strong performance in its Cardiovascular and MedSurg segments, with expectations for above-market growth through 2025-2026 [4] - The WATCHMAN device is a leading product in percutaneous left atrial appendage closure (LAAC), with a projected market expansion of approximately 20% in the coming years [5] - The company is gaining market share in electrophysiology, particularly with the FARAPULSE Pulsed Field Ablation System, which received FDA approval for expanded use in July 2025 [6] - Recent acquisitions, including Intera Oncology and Elutia's BioEnvelope business, support Boston Scientific's growth strategy and expansion into high-growth areas [7] - Emerging markets accounted for 15% of Boston Scientific's consolidated net sales in the first nine months of 2025, indicating significant long-term growth potential [8] Resmed Overview - Resmed is witnessing strong demand for its mask portfolio, including the AirFit and AirTouch ranges, and is focusing on direct-to-consumer markets in regions like China and India [9] - The company has launched new variants of its AirTouch F30i mask and continues to see strong sales from its AirSense device platforms [9] - Resmed is advancing AI integration in its digital health products, including the launch of the personal sleep health digital assistant, Dawn, in the U.S. [11] - The company is optimizing operations to improve gross margins and has made acquisitions like Somnoware and Ectosense to support its 2030 growth strategy [12] Financial Estimates and Performance - The Zacks Consensus Estimate for Boston Scientific's 2025 EPS indicates a year-over-year increase of 21.1% to $3.04, with a slight upward revision in the last 60 days [13] - Resmed's fiscal 2026 EPS consensus estimate of $10.84 reflects a 13.5% improvement over 2025, with a 3.3% increase in estimates over the past 60 days [15] - In the last 12 months, BSX shares have increased by 6.8%, while RMD shares have risen by 5.8% [16] Investment Considerations - Boston Scientific is highlighted for its divisional strength, ongoing momentum with the WATCHMAN device, and strategic acquisitions in high-growth markets [18] - Resmed remains focused on innovation and strong demand for its products, but Boston Scientific is currently viewed as the more attractive investment option based on recent performance [18] - Boston Scientific holds a Zacks Rank 2 (Buy), while Resmed has a Zacks Rank 3 (Hold) [20]

Core Viewpoint - Boston Scientific (BSX) is viewed positively for both short-term and long-term prospects, being considered one of the best investment ideas in the medical devices sector [1]. Company Analysis - The company operates within the medical devices industry, which is characterized by significant growth potential and innovation [1]. - Boston Scientific is recognized for its strong fundamentals and ability to uncover hidden value, making it an attractive option for investors [1]. Market Context - The medical devices sector is experiencing robust demand, driven by advancements in technology and an increasing focus on healthcare solutions [1]. - Investment opportunities in this sector are expected to grow, particularly for companies like Boston Scientific that demonstrate strong performance and strategic positioning [1].

Core Viewpoint - Boston Scientific (BSX) is viewed positively for both short-term and long-term investment prospects, being considered one of the best investment ideas in the medical devices sector [1]. Company Analysis - The company operates within the medical devices industry, which is characterized by significant growth potential and innovation [1]. - Boston Scientific is recognized for its strong fundamentals and ability to uncover hidden value, making it an attractive option for investors [1]. Market Context - The medical devices sector is experiencing robust demand, driven by advancements in technology and an increasing focus on healthcare solutions [1]. - Investment opportunities in this sector are expected to continue growing, positioning companies like Boston Scientific favorably in the market [1].

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]

Core Viewpoint - Boston Scientific is undergoing a planned management transition in its Cardiac Rhythm Management & Diagnostics (CRMDx) business, with Scott Olson retiring at the end of 2025 and Angelo De Rosa taking over in early 2026 [2][3][11]. Group 1: Management Transition - Scott Olson has served as the Senior Vice President and President of the CRMDx business for 27 years and will retire at the end of 2025 [5][7]. - Angelo De Rosa, who joined Boston Scientific in 2014, will assume the role of CRMDx business leader in 2026. He has previously led the Watchman left atrial appendage closure business [8][10]. Group 2: CRMDx Business Overview - The CRMDx business focuses on cardiac rhythm management and related diagnostic solutions, including pacemakers and implantable cardioverter-defibrillators (ICDs), and is a crucial part of Boston Scientific's cardiovascular device portfolio [4]. - This business addresses core clinical needs related to arrhythmias and has a stable market foundation and strategic position within the company's overall business structure [4]. Group 3: Leadership Insights - Olson emphasized the importance of teamwork and patient-centered values during his tenure and expressed gratitude for his long-term collaboration with the internal team [7]. - De Rosa views his transition to CRMDx as a return to his roots, having previously worked in the cardiac rhythm management field early in his career [10].

Core Viewpoint - Valuation may not be significant in the short term for well-managed companies with above-average growth, but it eventually becomes important, as evidenced by Boston Scientific Corporation in 2025 [1] Group 1 - The article emphasizes that valuation matters over time, particularly for companies like Boston Scientific Corporation [1]

Core Insights - Boston Scientific's Endoscopy business is a vital part of its MedSurg segment, focusing on innovative, less invasive technologies for gastrointestinal and pulmonary conditions, with net sales of $2.16 billion in the first nine months of 2025, accounting for 15% of total sales [2][9] - The endoscopy market is valued at $8 billion and is projected to grow at approximately 6% from 2026 to 2028, with Boston Scientific aiming to exceed this growth while improving operating margins [2][9] Business Segments - The Endoscopy portfolio is divided into four key areas, including pancreaticobiliary, which features products like SpyGlass and EXALT D, with plans to launch a capital platform next year to enhance imaging technologies using AI [3] - Endoluminal surgery is another significant area, with innovations such as MANTIS and OverStitch, facilitating the transition from traditional operating rooms to endoscopic therapies through improved tools [4] - The company is also focusing on Endobariatrics, offering minimally invasive weight loss solutions through the Endura Weight Loss Solutions, targeting the obesity market [5] Market Performance - Boston Scientific's shares have increased by 5.5% over the past year, outperforming the industry average increase of 0.1% [8] - The stock is currently trading at a forward five-year Price-to-Earnings (P/E) ratio of 27.90, which is above both its median and the industry average [10] Earnings Estimates - Earnings estimates for Boston Scientific are trending upward, with the current quarter estimate at $0.78 and the next year estimate at $3.45 [11][12]

Core Insights - Boston Scientific (BSX) has a stretched valuation with a Value Score of C, trading at a forward five-year price/earnings (P/E) of 27.77X, which is above its median and the industry average of 20.01X [1] - The company's performance has been mixed over the past year, underperforming key rivals Abbott (ABT) and Medtronic (MDT), but still faring better than the industry and sector [2] Valuation and Market Position - BSX's P/E ratio is higher than the broader Medical sector's P/E of 21.03X, indicating an expensive valuation compared to peers [1] - Key competitors, Abbott and Medtronic, are trading at lower P/E ratios of 22.15X and 20.01X, respectively [1] Business Performance and Growth Drivers - WATCHMAN sales increased by 35% in Q3 2025, supported by growing U.S. concomitant use, while the Electrophysiology (EP) business surged 63% in the same quarter due to FARAPULSE adoption [9][15] - The Urology business is driving strong sales from the global stone management franchise, with expectations of improving growth through 2026 following recent European approvals [10] - Endoscopy is experiencing robust growth in anchor products, and the Intracept procedure for chronic vertebrogenic pain is a significant growth driver in Neuromodulation [11] Strategic Initiatives - Boston Scientific aims to outpace market growth across neuromodulation, urology, and endoscopy, which together serve a global market of $20 billion growing nearly 7% [12] - The planned acquisition of Nalu Medical will expand the portfolio into peripheral nerve pain, presenting additional growth opportunities [12] Future Outlook - Management expects approximately 25% of U.S. WATCHMAN procedures to be performed concomitantly by the end of 2025, with a projected market growth of roughly 20% in the coming years [14] - Analysts remain optimistic about the company's earnings for 2025 and 2026, indicating confidence in its growth trajectory [16] Conclusion - Despite a premium valuation, Boston Scientific's innovative portfolio and strategic execution position it well for long-term growth, particularly through its WATCHMAN and EP products [18]

Core Insights - Parnassus Investments reported that the S&P 500 Index increased by 8.12% in Q3 2025, driven by investor optimism regarding monetary easing, strong consumer demand, and solid corporate earnings [1] - The Parnassus Core Equity Fund (Investor Shares) returned 2.57% in Q3 2025, underperforming the S&P 500 Index, and has a year-to-date return of 9.89% compared to the index's 14.83% [1] Company Highlights - Boston Scientific Corporation (NYSE:BSX) experienced a one-month return of -4.86% but gained 5.89% over the last 52 weeks, with a market capitalization of $142.952 billion as of December 22, 2025 [2] - The company reported consolidated revenue of $5.065 billion for Q3 2025, reflecting a 20.3% growth compared to Q3 2024 [4] Investment Strategy - The Parnassus Core Equity Fund made strategic moves in the Health Care sector by trimming positions in Eli Lilly and Stryker to initiate a position in Boston Scientific Corporation, citing its first-mover advantage and robust clinical data as key growth drivers [3] - Management's focus on disciplined R&D and M&A has led to organic sales growth and margin expansion, positioning Boston Scientific for durable growth [3]

Core Viewpoint - Boston Scientific Corporation (NYSE:BSX) is highlighted as a top investment opportunity in the healthcare AI sector, with TD Cowen reaffirming a Buy rating and setting a price target of $115, naming it their "Best Idea for 2026" [1] Group 1: Growth Potential - TD Cowen describes Boston Scientific as "the most attractive growth story in the medical devices sector," supported by expectations of over 10% organic sales growth annually, 50 basis points of yearly operating margin expansion, and double-digit EPS growth [1][2] - Analysts anticipate that Boston Scientific will maintain double-digit organic revenue growth through 2026, despite facing tougher year-over-year comparisons [1] Group 2: Competitive Advantage - Boston Scientific's proven history of strong double-digit earnings growth justifies higher valuation multiples due to its "scarcity value," as few companies can match this reliable high growth [2] - Key products driving this growth include Farapulse for atrial fibrillation treatment and Watchman for stroke prevention [2] Group 3: Innovation and Market Strategy - At the 7th Annual Wolfe Research Healthcare Conference, Boston Scientific's management discussed the company's innovation pipeline and market expansion strategies, particularly in electrophysiology [3] - The Farapulse pulsed field ablation (PFA) system is projected to exceed 50% market penetration in the US by the end of 2025 [3] - Historical trials for the Watchman device were discussed, highlighting limitations from older device generations and post-procedure regimens [3] Group 4: Technological Integration - Boston Scientific develops medical devices across various fields, including cardiology, endoscopy, neuromodulation, and urology, utilizing machine learning, natural language processing, and computer vision to enhance medical imaging and patient management [4]