Which Stock Will Bounce Back Best: Medtronic or Boston Scientific?
The medical device sector took a hit this spring when patients were forced to postpone elective surgical procedures due to the coronavirus pandemic, and Medtronic (NYSE: MDT) and Boston Scientific (NYSE: BSX) fell harder than most in their sector. Year to date, Medtronic's stock is down 17.85% and Boston Scientific's stock fell by 21.85%. That's well below the drops across the medical device industry, as demonstrated by the iShares U.S. Medical Devices ETF (NYSEMKT: IHI), which is down just 4.4% over the same period.
But both companies are poised to make strong comebacks once hospitals begin re-scheduling non-emergency procedures. Since their share prices have fallen, Medtronic and Boston Scientific have low price-to-earnings ratios compared to the industry average, indicating they could be good long-term buys now. While both companies have withdrawn full-year guidance, their management teams project confidence in a rebounding market.
The question is, as people begin going back to the hospital for non-coronavirus reasons, which of the two healthcare stocks is a better buy today?
Source Fool.com
