Many research firms have been coming up with their best ideas lists for 2012. Today brought a list of top picks in the medical technology and medical devices sector from Zacks Investment Research. We have decided to focus on three picks with some commentary and observations of our own along with the consensus upside from Thomson Reuters rather than just the full Zacks list: Boston Scientific Corporation (NYSE: BSX); Intuitive Surgical, Inc. (NASDAQ: ISRG); and St. Jude Medical, Inc. (NYSE: STJ). There is also a link on each for you to get the full report on each from Zacks.
Boston Scientific Corporation (NYSE: BSX) is a bit of a surprise to see as a top pick considering that this company’s stock is not just under $10.00 now… It is barely a $5.00 stock. The drug-eluting stent share and a recent approval are driving the decision. The consensus analyst price target from Thomson Reuters is roughly $7.00, implying about 35% upside from here. FULL BOSTON SCIENTIFIC REPORT
Intuitive Surgical, Inc. (NASDAQ: ISRG) is not so interesting as a top pick because of any sort of controversy, but it is interesting as a top pick considering that it is up more than 50% in 2011. At $440.73 and with a high of $449.06, this stock is trading right at the consensus analyst target price from Thomson Reuters of $440.10. FULL INTUITIVE REPORT
St. Jude Medical, Inc. (NYSE: STJ) may seem like a bottom-fishing pick as shares are down about 40% from the annual highs. At $33.67, the Thomson Reuters consensus price target has an implied 32% of upside to the $44.38 price target. Zacks called it better placed against other medical devices stocks in the cardiovascular sector, with positive earnings surprises and healthy revenue growth. FULL ST. JUDE REPORT
Others on the top picks list for 2012 by Zacks are Medtronic, Inc. (NYSE: MDT), Stryker Corporation (NYSE: SYK), Thermo Fisher Scientific, Inc. (NYSE: TMO), and ZOLL Medical Corporation (NASDAQ: ZOLL).
JON C. OGG