Boston Scientific (BSX) sells medical devices, traditionally implantable heart disease treatments like defibrillators and pacemakers. With Baby Boomers aging and the big problem of chronic heart disease, this is a great segment to be in. Favorable news about new products in the pipeline has many investors bullish about future earnings, and shares have been bid up handsomely as a result.
Of course, there are risks. Some products are not on the U.S. market yet and FDA approval is not always as easy a task as companies hope. Also, like many companies, Boston Scientific has been struggling to grow top-line revenue and has relied on efficiencies and cost-cutting to boost earnings. Still, the potential of healthcare — specifically BSX treatments for heart disease — is hard to argue against in the long term due to the changing demographics of the U.S.