Boston Scientific Corporation (NYSE:BSX) saw a decent share price growth in the teens level on the NYSE over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Boston Scientific’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Boston Scientific

Is Boston Scientific still cheap?

According to my valuation model, Boston Scientific seems to be fairly priced at around 1.8% below my intrinsic value, which means if you buy Boston Scientific today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $42.10, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Boston Scientific’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Boston Scientific?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Boston Scientific's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? BSX’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on BSX, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. While conducting our analysis, we found that Boston Scientific has 4 warning signs and it would be unwise to ignore them.

If you are no longer interested in Boston Scientific, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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