Should Value Investors Buy Baxter International (BAX) Stock?

Core Insights - The article emphasizes the importance of value investing and highlights the use of Zacks Rank and Style Scores to identify strong value stocks [1] Company Analysis: Baxter International (BAX) - Baxter International (BAX) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential [2] - BAX's current P/E ratio is 11.44, significantly lower than the industry average of 19.94 [2] - The Forward P/E for BAX has fluctuated between 10.64 and 15.91 over the past 52 weeks, with a median of 13.14 [2] - BAX's PEG ratio stands at 1.73, compared to the industry's average PEG of 1.97, indicating favorable growth expectations [2] - The PEG ratio for BAX has ranged from 1.63 to 4.33 in the past year, with a median of 2.26 [2] Company Analysis: Phibro Animal Health (PAHC) - Phibro Animal Health (PAHC) is rated 1 (Strong Buy) with a Value score of A, suggesting it is also a strong value stock [3] - PAHC's forward earnings multiple is 11.81, which is lower than the industry average P/E of 19.94 [3] - The PEG ratio for PAHC is 4.41, significantly higher than the industry average of 1.97 [3] - Over the last 12 months, PAHC's P/E has varied from 8.01 to 15.18, with a median of 10.56 [3] - PAHC's P/B ratio is 2.53, compared to the industry's price-to-book ratio of 6.77, indicating it may be undervalued [4] - The P/B ratio for PAHC has fluctuated between 1.42 and 2.78 over the past year, with a median of 1.89 [4] Conclusion - Both Baxter International and Phibro Animal Health exhibit strong value characteristics, suggesting they may be undervalued in the current market [4]