Key insights
- An investor expresses bullish sentiment on BSX (Boston Scientific) due to its growth potential and relatively cheap valuation, initiating a long position via LEAPS options. Conversely, they are bearish on ABT (Abbott Laboratories) due to concerns about its diagnostics business, viewing it as a potential value trap. This reflects stock-specific sentiment within the medical device sector.
I think BSX has hair and is trading cheap now. Especially considering its growth profile. It’s quite literally an ISRG level growth engine trading at reasonable multiples. So I added a 2028 $65 leaps today and will keep adding if we see further stabilization or dropping further to a 40 handle.
That being said I was looking at ABT this year and I think they have some real issues with diagnostics. This business kinda sucks and I think it’s value trap. So I don’t know if it’s worth adding to. Looking for thoughts on why you understand the risk and why you think it’s wrong.