NEW YORK (TheStreet) -- Shares of Boston Scientific Corp. are gaining by 1.59% to $16.57 in mid-afternoon trading on Tuesday, following speculation that the medical device maker is close to striking a deal to purchase Endo International PLC's medical devices segment. An agreement valuing Endo's medical device segment at close to $2 billion could come within a few weeks, sources told Reuters, adding that the two companies are still in negotiations and there is always the possibility that no deal is reached. If Boston Scientific were to purchase the business it would close out almost a decade of no acquisitions made on the part of the company, Reuters reports. Exclusive Report: Jim Cramer's Best Stocks for 2015 Boston Scientific's last acquisition was in 2006 when it bought the heart device maker Guidant Corp. for $27 billion. The transaction left Boston Scientific strapped with debt and having to deal with numerous product recalls. If Endo were to agree to the sale it would be part of the company's efforts to sell its non-core businesses in order to grow through other acquisitions, Reuters added. Separately, TheStreet Ratings team rates BOSTON SCIENTIFIC CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate BOSTON SCIENTIFIC CORP (BSX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: BSX's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 2.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems. Compared to its closing price of one year ago, BSX's share price has jumped by 25.95%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels. BOSTON SCIENTIFIC CORP's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BOSTON SCIENTIFIC CORP turned its bottom line around by earning $0.19 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings ($0.91 versus $0.19). The gross profit margin for BOSTON SCIENTIFIC CORP is rather high; currently it is at 64.18%. Regardless of BSX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BSX's net profit margin of 4.61% is significantly lower than the industry average. You can view the full analysis from the report here: BSX Ratings Report
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