Baxter International Inc. Stock Buy Recommendation Reiterated (BAX)
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- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- BAXTER INTERNATIONAL INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BAXTER INTERNATIONAL INC increased its bottom line by earning $3.88 versus $2.40 in the prior year. This year, the market expects an improvement in earnings ($4.53 versus $3.88).
- The gross profit margin for BAXTER INTERNATIONAL INC is rather high; currently it is at 57.20%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 16.80% trails the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Health Care Equipment & Supplies industry average. The net income increased by 1.2% when compared to the same quarter one year prior, going from $576.00 million to $583.00 million.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.2%. Since the same quarter one year prior, revenues slightly dropped by 0.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
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