Baxter International: A Closer Look at Recent Performance and Stock Outlook
Based in Deerfield, Illinois, Baxter International Inc. (BAX) is a key player in the healthcare industry, known for providing medical products and therapies. With a market capitalization of $16.2 billion, the company focuses on developing, manufacturing, and marketing a variety of products aimed at treating conditions such as hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other medical challenges. Its products find use in hospitals, dialysis centers, nursing homes, rehabilitation facilities, doctors’ offices, and laboratories.
Stock Performance: BAX vs. Market Competitors
Over the past year, shares of Baxter have lagged behind the broader market. BAX has experienced a decline of 18.8%, while the S&P 500 Index ($SPX) has seen an increase of nearly 20.9%. Interestingly, in 2025, BAX stock has rebounded by 8.5%, significantly outpacing the SPX’s modest rise of 1.9% year-to-date.
When comparing Baxter to the iShares U.S. Medical Devices ETF (IHI), the difference becomes even clearer. IHI has surged approximately 13.8% in the past year, and its year-to-date gain of 9.9% has outperformed Baxter’s stock returns during the same period.
Challenges Impacting BAX’s Performance
The company has faced challenges, such as its decision to end its Kidney Care operations and the negative impact of Hurricane Helene, both contributing to its stock performance issues.
On November 8, Baxter’s stock fell over 3% following its third-quarter earnings report. The company reported an adjusted earnings per share (EPS) of $0.80, which topped analyst expectations of $0.78. Additionally, its revenue reached $3.9 billion, exceeding forecasts of $3.8 billion. Baxter projects its full-year adjusted EPS to be between $2.90 and $2.94.
Future Earnings Estimates and Analyst Perspectives
For the fiscal year ending in December 2024, analysts predict a significant decline in BAX’s EPS, forecasting a drop of 29.6% to $1.83 on a diluted basis. Despite this anticipated downturn, Baxter has an impressive record for surprising analysts positively, having beaten consensus estimates in each of the last four quarters.
Currently, among 13 analysts covering Baxter stock, the consensus rating stands at “Hold.” This includes two “Strong Buy” ratings, ten “Holds,” and one “Moderate Sell.”
This analysis has remained stable over the last three months. On January 14, TD Cowen analyst Josh Jennings reaffirmed a “Hold” rating for BAX with a price target of $40, suggesting possible upside of 26.4% from current prices.
The average price target of $37.12 indicates a 17.3% premium to BAX’s current level, while the highest target of $42 implies a potential increase of 32.7%.
On the date of publication, Neha Panjwani did not hold positions in any of the securities mentioned in this article. The information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
