The time has finally come. On September 18th, the Federal Reserve slashed rates by 50 basis points. While this has been a pretty exciting time for markets, the question now becomes what works best post-rate cut? To answer thatI am an individual value investor pursuing a bachelor's degree in Finance at Florida State University with the goal of attaining my CFA. I have a distinct passion for equity research and fundamental analysis. Regarding my approach, I have been highly influenced by Tom Hayes, Founder, C ...

Core Viewpoint - Baxter International (BAX) is positioned for growth due to the demand for its essential medical products and ongoing transformational actions, despite facing inflationary pressures [1]. Company Performance - Baxter reported solid year-over-year growth in both earnings and revenues for the second quarter of 2024, with overall sales strong across product categories, except for a decline in Front Line Care due to the U.S. primary care market [3]. - Revenues from continued operations totaled $3.81 billion in the second quarter, reflecting a 3% increase on a reported basis and a 4% increase at constant currency [5]. Product Development and Transformational Actions - Recent product launches, including the Vest Advanced Pulmonary Experience (APX) System and the Helion Integrated Surgical System, are expected to contribute to top-line growth [4]. - The company has implemented a new simplified structure to enhance supply chain resilience and align with its manufacturing footprint, with updates expected in the third-quarter earnings call [4]. Divestitures and Financial Strategy - Baxter divested its BioPharma Solutions business for $4.25 billion in cash to focus on core operations and reduce interest expenses [4]. - In August, Baxter entered into an agreement to divest its Vantive Kidney Care segment for $3.8 billion, with plans to use the proceeds to reduce debt and improve operational efficiency [5]. Market Dynamics and Challenges - Despite recovery, Baxter faces ongoing pressure related to hospital admissions and procedural volumes, with supply chain disruptions impacting growth [6]. - The Asia-Pacific market contributes nearly 17% to Baxter's revenues, with significant growth opportunities in China, although challenging market dynamics may affect performance [6]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for 2024 revenues is $15.22 billion, indicating a 1.8% increase from the previous year [7]. - The consensus estimate for adjusted earnings per share (EPS) is $2.96, reflecting a 13.9% increase from the prior year, with a 1.7% improvement in estimates over the past 60 days [7].

Group 1 - Baxter International (BAX) has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while LeMaitre Vascular (LMAT) has a Zacks Rank of 3 (Hold) [1] - Value investors utilize various metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [2] - BAX has a forward P/E ratio of 12.46 and a PEG ratio of 1.25, while LMAT has a forward P/E of 49.01 and a PEG ratio of 2.39, indicating BAX is more favorably valued [2][3] Group 2 - BAX's P/B ratio is 2.44, compared to LMAT's P/B of 6.38, further supporting BAX's superior valuation [3] - Based on the valuation metrics, BAX holds a Value grade of A, while LMAT has a Value grade of D, reinforcing BAX as the better value option [3]

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are ...

Core Insights - Baxter International, Inc. launched its next-generation airway clearance system, The Vest Advanced Pulmonary Experience (APX) System, at the North American Cystic Fibrosis Conference, receiving FDA 510(k) clearance in March 2024 [1][2] - The Vest APX System is designed for daily therapy for adults and children with chronic lung conditions, featuring enhanced comfort and patient-centered improvements [1][3] Company Developments - Following the product announcement, Baxter's shares increased by 0.8%, closing at $38.91 [2] - Baxter's market capitalization stands at $19.85 billion, with an earnings yield of 7.61%, significantly higher than the industry average of 0.95% [2] Market Context - The global respiratory care devices market was valued at $22.9 billion in 2023, with a projected CAGR of 7.6% from 2024 to 2030, indicating a positive outlook for Baxter's respiratory health business [2] - Over the past six months, Baxter's shares have decreased by 10.7%, contrasting with a 7.5% increase in the industry and a 9.6% rise in the S&P 500 [2] Product Features - The Vest APX System utilizes High Frequency Chest Wall Oscillation (HFCWO) technology to help dislodge mucus from airways, addressing issues faced by patients with bronchiectasis and cystic fibrosis [3][4] - The new system includes a lightweight garment, wicking fabric for comfort, and a smaller control unit that is 19% smaller and 30% lighter than its predecessor [4] Business Strategy - Baxter entered the non-invasive respiratory health market in December 2021 through the acquisition of Hillrom, expanding its portfolio to include various airway clearance and non-invasive ventilation products [5] - The respiratory health portfolio includes the Volara System and the Monarch Airway Clearance System, which support patients with chronic obstructive pulmonary disease and other pulmonary conditions [5][6]

Industry Overview - The Zacks Medical – Products industry is experiencing revenue growth driven by strong demand for surgeries, new product launches, and market expansion [1][2] - An early surge in demand for respiratory products is positively impacting sales [1] - Industry players are increasing product and service prices to manage higher costs, benefiting both top and bottom lines [1] Market Dynamics - U.S. hospitals are likely to increase budgets due to improving demand and lower interest rates, which may enhance medical product sales [2] - Supply-chain constraints, rising material costs, and labor shortages are ongoing challenges for the industry [2][3] - A decline in demand for COVID-19-related products is negatively affecting revenues, alongside a soft market in China [2] Key Players - Companies like Boston Scientific, Baxter International, Haemonetics, and Phibro Animal Health are adapting to changing consumer preferences and are seeing share price increases [2] - The industry is ranked 63 in the Zacks Industry Rank, placing it in the top 25% of over 250 Zacks industries, indicating positive near-term prospects [8] Performance Metrics - The industry has outperformed its own sector with a collective stock increase of 21.6%, compared to the Zacks Medical sector's growth of 12.3% [9] - The industry is currently trading at a forward P/E of 22.2X, slightly above the S&P 500's 21.8X and the sector's 23.3X [10] Technological Trends - The adoption of AI, medical mechatronics, and robotics is shaping the future of the medical products industry, particularly in minimally invasive surgeries [4][5] - 3D printing technology is revolutionizing the medical devices sector by enabling the production of complex biological structures [5] Demand Trends - The COVID-19 pandemic has led to increased global demand for diagnostic testing kits, shifting the focus towards rapid, point-of-care devices [6] - Emerging markets are showing strong demand for medical products due to rising medical awareness and economic growth [6] Company Highlights - **Boston Scientific**: Anticipates 13.5-14.5% net sales growth for the full year 2024, with a Zacks Rank of 2 [12][14] - **Baxter International**: Expects 3% sales growth for 2024, with a Zacks Rank of 2 [15][17] - **Haemonetics**: Forecasts 5-8% revenue growth for fiscal 2025, holding a Zacks Rank of 2 [18][19] - **Phibro Animal Health**: Projects a 19% CAGR in revenues from fiscal 2025-2027, despite facing regulatory challenges [20][21]

Baxter International (BAX) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Indivi ...

Investors interested in stocks from the Medical - Products sector have probably already heard of Baxter International (BAX) and Insulet (PODD) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores ...

Group 1: Baxter International (BAX) - Baxter International currently has a Zacks Rank of 2 (Buy) and an A grade for Value [2] - The stock's Forward P/E ratio is 12.59, significantly lower than the industry's average of 22.08 [2] - BAX's PEG ratio stands at 1.26, compared to the industry's average PEG of 2.19 [2] - The P/B ratio for BAX is 2.60, which is lower than the industry's average P/B of 5.34 [3] - BAX's P/S ratio is 1.35, slightly below the industry's average P/S of 1.45 [3] - Over the past 52 weeks, BAX's Forward P/E has ranged from a high of 14.92 to a low of 10.64, with a median of 12.30 [2] - The PEG ratio for BAX has fluctuated between a high of 4.33 and a low of 1.20, with a median of 2.13 [2] - BAX is considered one of the market's strongest value stocks due to its favorable earnings outlook [4] Group 2: Koninklijke Philips (PHG) - Koninklijke Philips has a Zacks Rank of 2 (Buy) and an A grade for Value [4] - The Forward P/E ratio for PHG is 18.06, lower than the industry's average of 22.08 [4] - PHG's PEG ratio is 0.94, significantly below the industry's average PEG of 2.19 [4] - The P/B ratio for PHG is 2.25, compared to the industry's average P/B of 5.34 [4] - Over the past 12 months, PHG's P/B has ranged from a high of 2.25 to a low of 1.28, with a median of 1.50 [4] - The data indicates that both Baxter International and Koninklijke Philips are likely undervalued currently [4]

Technical Analysis - Baxter International (BAX) has recently reached a key level of support and has overtaken the 200-day moving average, indicating a long-term bullish trend [1] - The 200-day simple moving average is a useful tool for determining long-term market trends and serves as a support or resistance level [1] Stock Performance - Shares of BAX have increased by 5.3% over the past four weeks [1] - The company currently holds a Zacks Rank 3 (Hold), suggesting potential for continued upward movement [1] Earnings Estimates - There have been 8 upward revisions in earnings estimates for the current fiscal year, with no downward revisions, indicating strong investor confidence [1] - The consensus earnings estimate for BAX has also moved up, further supporting the bullish outlook [1] Investment Consideration - Investors are encouraged to consider adding BAX to their watchlist due to the positive technical indicators and earnings estimate revisions [2]