Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Baxter International

(

BAX

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Baxter International as such a stock due to the following factors:

  • BAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $183.8 million.
  • BAX has traded 80,027 shares today.
  • BAX is trading at a new lifetime high.

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More details on BAX:

Baxter International Inc. develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney diseases, trauma, and other chronic and acute medical conditions. The stock currently has a dividend yield of 2.7%. BAX has a PE ratio of 20.0. Currently there are 4 analysts that rate Baxter International a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Recommends

The average volume for Baxter International has been 2.5 million shares per day over the past 30 days. Baxter International has a market cap of $41.6 billion and is part of the health care sector and health services industry. The stock has a beta of 0.55 and a short float of 1.7% with 3.79 days to cover. Shares are up 9.4% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Baxter International as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues rose by 16.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for BAXTER INTERNATIONAL INC is rather high; currently it is at 55.56%. Regardless of BAX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BAX's net profit margin of 12.19% compares favorably to the industry average.
  • BAXTER INTERNATIONAL INC's earnings per share declined by 11.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, BAXTER INTERNATIONAL INC reported lower earnings of $3.65 versus $4.18 in the prior year. This year, the market expects an improvement in earnings ($5.16 versus $3.65).
  • In its most recent trading session, BAX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • The change in net income from the same quarter one year ago has exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income has decreased by 11.9% when compared to the same quarter one year ago, dropping from $590.00 million to $520.00 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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