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Trade of the Day: Boston Scientific (BSX)

BSX has been a great performer all year

   

Boston Scientific (BSX) is a  $15 billion medical-device maker that has been improving its products and its finances, which has enabled it to make its way back after having been heavily beaten down in recent years. Its medical devices will start to be available to many more Americans in coming years as a result of the Affordable Care Act.

The current version of the ACA calls for the program to be partially funded by a tax on medical devices, such as the ones BSX makes. One of the goals of GOP congressmen in the fiscal mess in Washington, D.C. is to kill this particular tax. The effort actually has bipartisan support, so it could happen, which is one reason the shares have been firm. It’s still uncertain though, so if the tax is killed or delayed the shares will respond positively. Shares were down fractionally Monday.

BSX is a stock I return to again and again for trades, and now is an especially pertinent time with the implementation of the new healthcare exchanges.

Recommendation: Buy BSX at current levels for a $12.50 target.

Jon Markman operates the investment firm Markman Capital Insights. He also writes a daily trading newsletter, Trader’s Advantage, and CounterPoint Options, a service geared towards helping individual traders make steady, consistent profits with the VIX. . Check out his Top Stock for 2012 here.

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Article printed from InvestorPlace Media, http://investorplace.com/2013/10/trade-of-the-day-boston-scientific-bsx/.

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