Baxter International Inc. (BAX): Today's Featured Health Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Baxter International ( BAX) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day down 1.5%. By the end of trading, Baxter International fell 75 cents (-1.1%) to $67.57 on light volume. Throughout the day, two million shares of Baxter International exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $67.53-$68.25 after having opened the day at $68.20 as compared to the previous trading day's close of $68.32. Other companies within the Health Services industry that declined today were: Select Medical Holdings Corporation ( SEM), down 10.4%, Cardica ( CRDC), down 9%, Stereotaxis ( STXS), down 8.8%, and Life Technologies ( LIFE), down 8.3%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Baxter International Inc., through its subsidiaries, develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. Baxter International has a market cap of $37.4 billion and is part of the health care sector. The company has a P/E ratio of 15, below the S&P 500 P/E ratio of 17.7. Shares are up 2.3% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Baxter International a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Baxter International as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health services industry could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health services industry could consider ProShares Ultra Short Health Care ( RXD).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

J&J Enters Death Penalty Debate, Protests Use of Drug in Lethal Injection

Blue Apron, Philip Morris, Honeywell, Becton Dickinson: 'Mad Money' Lightning Round

Buy These High-Octane Stocks on a Dip: Cramer's 'Mad Money' Recap (Monday 8/7/17)

These Stocks Are Ready to Reverse Course

Baxter International, Becton Dickinson, Boston Scientific: Cramer's Top Takeaways