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Deerfield, Illinois-based Baxter International Inc. (BAX) functions as a healthcare company providing medical products and therapies. Valued at $16.2 billion by market cap, the company develops, manufactures, and markets products and technologies related to hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. The company's products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and research laboratories.
Shares of this global MedTech leader have underperformed the broader market over the past year. BAX has declined 18.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.9%. However, in 2025, BAX stock is up 8.5%, surpassing the SPX’s 1.9% rise on a YTD basis.
Narrowing the focus, BAX’s underperformance is apparent compared to the iShares U.S. Medical Devices ETF (IHI). The exchange-traded fund has gained about 13.8% over the past year. Moreover, the ETF’s 9.9% gains on a YTD basis outshines the stock’s returns over the same time frame.
BAX’s decision to discontinue its Kidney Care operations, coupled with the adverse effects of Hurricane Helene has led to its underperformance.
On Nov. 8, BAX shares closed down more than 3% after reporting its Q3 results. Its adjusted EPS of $0.80 exceeded the Wall Street expectations of $0.78. The company’s revenue was $3.9 billion, beating Wall Street forecasts of $3.8 billion. BAX expects full-year adjusted EPS to be between $2.90 and $2.94.
For the current fiscal year, ended in December 2024, analysts expect BAX’s EPS to decline 29.6% to $1.83 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 13 analysts covering BAX stock, the consensus is a “Hold.” That’s based on two “Strong Buy” ratings, 10 “Holds,” and one “Moderate Sell.”
The configuration has been consistent over the past three months.
On Jan. 14, TD Cowen analyst Josh Jennings maintained a “Hold” rating on BAX with a price target of $40, implying a potential upside of 26.4% from current levels.
The mean price target of $37.12 represents a 17.3% premium to BAX’s current price levels. The Street-high price target of $42 suggests an upside potential of 32.7%.
