The market sometimes struggles to find direction, as it digests mixed yet impactful economic data. Wednesday was one of those days. With US 10-Year Treasury yields rising and FOMC minutes highlighting inflation concerns, major indexes swung lower, then higher, before closing mixed: the Dow ($INDU) and S&P 500 ($SPX) edged up, while the Nasdaq Composite ($COMPQ) ended in the red.
Amid the back-and-forth, there are several tools you can use to find stocks that may be of interest, depending on your angle of approach. I was interested in finding stocks that bucked market indecision, specifically those that notched all-time or 52-week highs.
Using the StockCharts New Highs tool, one of the Dashboard panels, I observed that Boston Scientific Corp (BSX) occupied the top spot.
FIGURE 1. NEW HIGHS TOOL. BSX defied the market’s turbulence, reaching a record high.Image source: StockCharts.com. For educational purposes.
Though not one of the flashier stocks on Wall Street, you’ve likely heard of BSX, or you may be familiar with some of the products it manufactures. Still, it doesn’t hurt to get a snapshot of its technical and fundamental profile. Here you can use the StockCharts Symbol Summary tool for a quick analysis.
FIGURE 2. TOP SECTION OF THE SYMBOL SUMMARY PAGE FOR BSX. It may not be the “sexiest” stock, but it’s a “solid” one.Image source: StockCharts.com. For educational purposes.
The stock has a sizable market cap and liquidity, making it tradable for those interested in the stock. If you scroll down, the summary, you’ll find that despite a few quarters of earnings misses, it has a solid history of topping revenue expectations. (The summary offers much more detailed technical and fundamental data, so I encourage you to explore it thoroughly.)
A closer look at BSX reveals its innovative product portfolio, strategic acquisitions, robust financials, strong market position, and favorable analyst expectations—all pointing to a “solid” company with promising growth potential.
Let’s look at a weekly chart for a big-picture view of its historical price action.
FIGURE 3. WEEKLY CHART OF BSX. The stock has outperformed the healthcare sector (XLV) and the S&P 500 since 2022.Chart source: StockCharts.com. For educational purposes.
BSX’s solid uptrend began toward the end of 2022. It began outpacing the S&P 500 earlier that year and the Health Care sector (using the Health Care Select Sector SPDR ETF XLV) later that summer. Its relative price performance shows that it’s outperforming the sector by over 107% and the broader market by roughly 80%.
Notice that price surge in the last bar? That was due to a major acquisition (it purchased Bolt Medical) and a competitor’s, Johnson & Johnson (JNJ), product suspension benefiting BSX. As far as fundamental projections are concerned, they vary, as with most stocks. Nevertheless, for those interested in adding BSX stock to your portfolio, it’s best to decide on a favorable entry point. For that, you need to look at the daily chart.
FIGURE 4. DAILY CHART OF BSX. Note the runaway gap that will likely get filled, signaling a potential buying opportunity.Chart source: StockCharts.com. For educational purposes.
The stock has been experiencing an extended period. Note that the 50-, 100-, and 200-day Exponential Moving Averages are all in “full-sail,” indicating the strength of BSX’s years-long uptrend.
BSX’s news-driven runaway gap is likely to be filled as bullish sentiment moderates. Plus, the Money Flow Index (MFI), which considers volume and momentum, has been declining from “overbought” levels (top panel), showing a slight bearish divergence that adds to the case for a near-term pullback.
As price pulls back, the 50-, 100-, and 200-day EMAs should provide clear support levels; each EMA presenting a potential entry point for those looking to go long.
The chart also plots a Bullish Percent Index (BPI) for the healthcare sector ($BPHEAL) in the bottom panel. Why plot this when BSX is the clear outlier and outperformer? You will want to monitor breadth to assess the overall sector context regardless of BSX’s performance. For instance, if the sector is undergoing a bullish rotation, such a tide tends to lift most stocks within that sector, including BSX.
In the case above, the healthcare BPI shows that the sector has risen above “oversold” levels (the 30% line) as 42% of stocks in the sector are exhibiting P&F buy signals. BPI favors the bulls when the line exceeds 50%. So, while BSX is outperforming the sector, the proverbial tides appear to be turning in BSX’s favor.
Action Steps
If you’re looking to add BSX to your portfolio, consider the following action steps:
Add BSX to your ChartLists to monitor the stock, using the indicators suggested above.Monitor BSX’s price action in light of any developments that may affect it, as the gap and surge in price were heavily news-driven.Look to the EMAs as potential support levels and entry points.Keep an eye on market breadth to assess how sector performance may (or may not) affect the stock’s performance in the near-to-intermediate term.
At the Close
StockCharts’ New Highs Tool is an invaluable resource for spotting standout stocks. In the case above, the tool highlighted BSX as a stock that defied broader market uncertainty, providing a strong starting point for deeper analysis.
While healthcare may not currently rank among the most bullish sectors, BSX has been bucking this trend, rising steadily for the last two and a half years. Its outperformance — driven by acquisitions and competitor setbacks — suggests it could continue to grow, making it a compelling candidate for investment. Additionally, if the healthcare sector eventually turns bullish, it may provide an opportunity to jump into the sector during the early stages of a bullish rotation.
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.
