Investors looking for stocks in the Medical - Products sector might want to consider either Baxter International (BAX) or LeMaitre Vascular (LMAT). But which of these two companies is the best option for those looking for undervalued stocks?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Baxter International said on Thursday it will import 18,000 tons of intravenous products from its newly cleared international plants to the U.S. by the end of the year to mitigate a shortage caused by Hurricane Helene.
The Federal Reserve's rate cut historically boosts healthcare stocks, and Baxter International's recent downturn presents a buying opportunity due to overblown market reactions. Baxter's acquisition of Hill-Rom and subsequent challenges, including rising input costs and supply chain issues, have been addressed, setting the stage for recovery. The sale of Baxter's kidney care business and debt repayment will strengthen the balance sheet, enabling future share repurchases and margin expansion.
BAX's robust growth across all regions, along with transformational initiatives, boosts confidence. However, pandemic-related disruption continues to hurt sales.
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Investors looking for stocks in the Medical - Products sector might want to consider either Baxter International (BAX) or LeMaitre Vascular (LMAT). But which of these two stocks presents investors with the better value opportunity right now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Baxter stock (NYSE: BAX), a healthcare company, currently trades at $38 per share, more than 50% lower than the level seen in February 2022. BAX stock has fared worse than its peer – Becton, Dickinson & Company stock, down 7% over this period.
BAX launches its next-generation airway clearance system, The Vest APX System, for chronic lung conditions.
Ongoing rise in demand for medical procedures and cost-cutting initiatives should support the Zacks Medical-Products industry. BSX, BAX, HAE and PAHC are well-poised to gain from the favorable factors.
Healthcare is undervalued despite being the top sector for earnings growth, making it an attractive investment with solid fundamentals and the potential for explosive returns in 2025. Investing in healthcare ETFs or individual undervalued healthcare stocks can capitalize on the sector's recovery and expected double-digit growth through 2026. Screening for blue-chip healthcare stocks with solid fundamentals and fair valuations can yield superior returns, including these five coiled spring blue chips.