2. Boston Scientific Corporation (NYSE:BSX)
Boston Scientific Corporation (NYSE:BSX) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the market. Answering a caller’s query about the company, Cramer said:
You know, I have to tell you, I’ve been blown away… [by] how badly that stock’s performing. The competition got much more severe than I realized it could do. I thought that Mike Mahoney had it under control. I was not right, which therefore means I’m wrong. And I’m surprised. This stock was one of the greatest performers. It’s not anymore.
Boston Scientific Corporation (NYSE:BSX) manufactures medical devices for different fields, including cardiology, neurology, and urology. Some of the company’s products include heart-monitoring implants, spinal cord stimulators, and diagnostic tools for gastrointestinal conditions and cancer treatment. Hardman Johnston Global Equity Strategy stated the following regarding Boston Scientific Corporation (NYSE:BSX) in its third quarter 2025 investor letter:
Within Health Care, Boston Scientific Corporation (NYSE:BSX) and Vertex Pharmaceuticals Inc. were the largest drivers of underperformance. The Trump administration announced a Section 232 tariff investigation into medical devices increasing macro uncertainty. Boston Scientific Corp. is well positioned to manage tariffs given their diverse supply chain and increased US manufacturing footprint post COVID. Boston also has strong pricing power and has been able to largely mitigate tariffs this far. Any outcome from the Section 232 investigation will be capped for countries that have existing trade deals (e.g. 15% tariff for European Union). The market has also seen a rotation within healthcare from medical devices to pharmaceuticals/biotech as the first deal was announced between Pfizer/Trump administration (late September 2025). Headwinds are easing in other areas of healthcare placing them “in favor” relative to medtech. We continue to view Boston Scientific favorably, supported by its diversified growth profile across cardiology, electrophysiology, endoscopy, and urology franchises. Farapulse, pulsed-field ablation technology, is practice changing for electrophysiologists and is expected to drive significant growth over upcoming years. At its recent Capital Markets Day, management introduced new long-term targets of 10% organic revenue growth, 50 bps of annual margin expansion, and double-digit EPS growth through 2028. Having exceeded targets from six consecutive investor days, management’s credibility suggests upside to these new goals.
