Baxter International Inc. (BAX), headquartered in Deerfield, Illinois, is a global leader in healthcare solutions, specializing in medical devices, pharmaceuticals, and biotechnology products. With a market cap of $14.8 billion, Baxter delivers innovative therapies and services that enhance patient care and empower healthcare providers worldwide to achieve better outcomes.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” and Baxter International belongs to this category. With a strong emphasis on innovation and patient-centric solutions, Baxter provides a diverse portfolio that enhances healthcare outcomes. The company’s commitment to advancing medical care through cutting-edge tech and strategic partnerships drives growth and supports better health and well-being for patients worldwide.
Shares of Baxter International are trading 33.9% below their 52-week high of $44.01, hit on Mar. 8. The stock has declined 25.4% over the past three months, underperforming the iShares U.S. Medical Devices ETF (IHI), which has gained marginally over the same time frame.
Over the past six months, BAX declined 15%, lagging behind IHI's impressive 6.7% gain. Similarly, over the past 52 weeks, BAX's 24.2% dip significantly underperforms compared to IHI's robust 10.5% growth.
BAX has consistently stayed below both its 50-day moving average since early October and 200-day moving averages since late September, indicating a sustained bearish trend.
Shares of Baxter International declined 3.9% on Nov. 8 following its Q3 earnings. Adjusted EPS dropped 2.4% year over year to $0.80, surpassing Wall Street's estimate of $0.78. Revenue totaled $3.85 billion, slightly ahead of the consensus forecast of $3.84 billion.
Baxter's updated 2024 guidance reflects the impact of Kidney Care's discontinued operations and Hurricane Helene, excluding BPS' discontinued operations. For the full year, the company anticipates 1% to 2% sales growth, and adjusted EPS is expected to land somewhere between $2.90 and $2.94. For fiscal Q4, sales are expected to decline slightly, with adjusted EPS projected between $0.77 and $0.81.
BAX’s rival, Becton, Dickinson, and Company (BDX), has outperformed by declining only 6.6% over the past 52 weeks.
Given BAX's underperformance relative to the industry peers, analysts are cautious about the stock's outlook. Of the 13 analysts covering the stock, BAX has a consensus rating of "Hold" with a mean price target of $37.83, indicating a potential upside of 30.1% from its current level.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- 3 Tech Stocks to Buy for Steady Growth in 2025
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