Reasons to Add Baxter International Stock to Your Portfolio Now

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].