Shares of medical device maker Boston Scientific (BSX) are hitting new lows today at $29 per share. The stock now trades at less than 14 times this year's expected earnings, despite being the leading maker of a new class of heart devices known as drug-eluting stents. These new stents are coated with drugs that help patients heal from cardiovascular surgery and are widely becoming the de-facto standard within the industry.

As has always been the case with medical devices makers such as BSX, Guidant (GDT), St. Jude Medical (STJ), and Medtronic (MDT), competitive concerns continually drive share price fluctuations. While Boston Scientific is in the lead today, Johnson & Johnson (JNJ) has solidified the number two position and will surely be helped by its pending acquisition of Guidant. Both Medtronic and Guidant have yet to begin selling their drug-eluting stents, but they are in testing. Within a year or two, most players will have competing products on the market, cutting into Boston's lead. Hence, BSX shares are making multi-year lows today.

The good news though, is that the number of competitors is decreasing due to consolidation in the industry. The medical device market is still growing at a double digit clip annually. Although BSX's stent market share will likely decline in coming years, the company will remain a strong competitor and currently trades at a steep discount to the other companies in the industry. The stock's near-term momentum is definitely down, but investors should keep a close eye on Boston Scientific, as an opportune time to buy the beaten-down shares will most likely present itself at some point in the future.