Trade-Ideas: Baxter International (BAX) Is Today's Pre-Market Laggard Stock

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 pre-market laggard 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 $164.5 million.
  • BAX traded 57,200 shares today in the pre-market hours as of 9:22 AM.
  • BAX is down 2.1% today from yesterday's close.

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More details on BAX:

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. The stock currently has a dividend yield of 2.7%. BAX has a PE ratio of 17.9. Currently there are 12 analysts that rate Baxter International a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Baxter International has been 2.6 million shares per day over the past 30 days. Baxter International has a market cap of $38.9 billion and is part of the health care sector and health services industry. The stock has a beta of 0.74 and a short float of 0.7% with 1.64 days to cover. Shares are up 7.4% 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, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • BAX's revenue growth has slightly outpaced the industry average of 2.0%. Since the same quarter one year prior, revenues slightly increased by 2.7%. 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 57.29%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.08% is above that of the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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 declined by 10.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BAXTER INTERNATIONAL INC increased its bottom line by earning $4.18 versus $3.88 in the prior year. This year, the market expects an improvement in earnings ($4.67 versus $4.18).
  • The change in net income from the same quarter one year ago has significantly 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 10.7% when compared to the same quarter one year ago, dropping from $661.00 million to $590.00 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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