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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.
