Baxter International Inc. (BAX) Buy or Sell Stock Guide

Last updated: Jun 04, '18

The analysis below may be helpful to you if you have any of the following questions about BAX stock:

  • Is BAX a buy or a sell?
  • Should I sell or hold BAX stock today?
  • Is BAX a good buy / a good investment?
  • What are BAX analyst opinions, recommendations, ratings?

Here are BAX stock buy reasons/signals:

1. Baxter is typically a leading competitor, often taking the number-one or -two spot in many of the markets it competes in, such as dialysis equipment, parenteral nutrition, biosurgery, and anesthetic gases.

2. New product launches, refocusing capital into higher-margin product lines, and de-emphasizing unprofitable segments should enhance Baxter's profitability.

3. Emerging markets are a prime source of growth for many of Baxter's products, especially dialysis products and nutrition solutions.

4. BAX quarterly revenue growth was 8.20%, higher than the industry and sector average revenue growth (6.10% and 3.70%, respectively).

5. BAX forward dividend yield is 1.08%, higher than the industry (0.19%) and sector (0.14%) forward dividend yields.

6. BAX Price/Sales ratio is 3.62, and it’s low compared to its industry peers’ P/S ratios.

7. BAX PEG ratio (P/E adjusted for growth) is 1.85, and it’s low compared to its industry peers’ PEG ratios.

8. BAX average analyst rating is Buy.

Here are BAX stock sell reasons/signals:

1. Baxter's profitability appears to be below that of peers, which could make margin gains difficult over the coming years.

2. Although many of Baxter's products are essential for medical care and patient health, many of the company's products are commodities with little pricing power.

3. While Baxter's acquisition of Gambro strengthens the firm's position in the dialysis market, Gambro's historical growth has been flat. Baxter's goal of accelerating organic and Gambro-sourced growth over the next few years could prove lofty.

4. BAX stock price ($72.70) is at the 52-week high. Perhaps now is a good time to sell?

5. BAX profitability is declining. The YoY profit margin change was -42.06pp.

What are your thoughts on BAX?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

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