Baxter Intl (NYSE:BAX) Stock, Quote.Headers.trade-ideas

Baxter Intl

Baxter offers a variety of medical instruments and supplies to caregivers. It enhanced its portfolio of hospital-focused offerings by acquiring Hillrom in late 2021, which added basic equipment, including hospital beds, to the portfolio, although about half of Hillrom's revenue comes from more digitally connected offerings like its smart beds and Voalte medical communications app. From its legacy operations, Baxter offers tools to help patients with acute and chronic kidney failure, which it plans to spin off by mid-2024. It also sells a variety of injectable therapies for use in care settings, such as IV pumps, administrative sets, and solutions; nutritional products; and surgical sealants and hemostatic agents.

Baxter International

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ARES

Ares Management and HPS Investment Partners lead a $3 billion credit facility to support Carlyle&#39;s potential acquisition of Baxter&#39;s kidney-care division, highlighting the evolving role of private credit lenders in significant healthcare deals.

Carlyle&#39;s $4B Purchase Of Baxter&#39;s Kidney Division Backed By Ares And HPS Financing

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AutoNation, Baxter International And Other Big Stocks Moving Lower In Monday&#39;s Pre-Market Session

Analyst Ratings

PIPR

Carlyle Group (NASDAQ: CG) is considering acquiring Baxter International&#39;s (NYSE: BAX) kidney care spinoff, Vantive, in a deal valued at more than $4 billion, including debt.

Carlyle Group Eyes Buyout of Baxter&#39;s Kidney Care Unit

Baxter International Inc

BABB

Ares Management Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARES#NYSE">ARES</a>) and HPS Investment Partners are spearheading a $3 billion credit facility to finance Carlyle Group Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CG#NASDAQ">CG</a>) potential acquisition of Baxter International Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAX#NYSE">BAX</a>) kidney-care division.
This debt package includes a $2.5 billion unitranche loan and a $450 million revolver.
Oaktree Capital Management is also involved in the financing, and smaller lenders may participate after signing.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38027718/medical-devices-giant-baxter-secures-fda-approval-for-new-infusion-pump-system" rel="noreferrer noopener">Medical Devices Giant Baxter Secures FDA Approval For New Infusion Pump System</a>.
The financing terms suggest an interest rate five percentage points above the Secured Overnight Financing Rate, placing the division Vantive&#8217;s leverage at 4.2 times pro-forma earnings.
Despite the financing setup, an acquisition agreement hasn&#8217;t been finalized, and the deal remains uncertain.
As per the WSJ report, Carlyle is in exclusive talks to acquire&nbsp;Baxter&#8217;s Vantive in a deal valued at over $4 billion, <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39663935/carlyle-eyes-4b-acquisition-of-baxters-kidney-care-unit-vantive-report" rel="noreferrer noopener">including debt</a>. The companies began exclusive negotiations in late June.
Baxter had announced plans to spin off Vantive in the second half of this year, intending to separate its acute therapies&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38595653/why-is-medical-device-maker-baxter-stock-trading-lower-on-thursday" rel="noreferrer noopener">and renal care business</a>.
In 2023, Baxter reported that Vantive generated approximately&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/02/37014544/baxter-says-2023-performance-reflects-strategic-initiatives-with-new-operating-model-without-biopha" rel="noreferrer noopener">$4.5 billion in revenue</a>.
The Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-23/ares-hps-line-up-3-billion-debt-for-carlyle-s-baxter-unit-bid?sref=y3YMCJ4e" rel="noreferrer noopener">report</a> added that the complexity of business carveouts often hinders banks from competing on such deals, allowing private equity sponsors to step in.
The $1.7 trillion private credit market enables direct lenders to secure significant deals, positioning them against banks for financing opportunities.
This deal would mark at least the third collaboration between Ares and HPS on healthcare division carveouts.
Previously, they, along with other lenders, committed $4.8 billion to the acquisition of Catalent Inc. and provided $1.95 billion in financing for the buyout of Baxter&#8217;s contract medical manufacturing unit.
Baxter considered selling its kidney-care operations in 2022, following its $10.5 billion acquisition of Hill-Rom.
Price Action: BAX stock is up 0.40% at $35.41&nbsp;at last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Photo by Capri23auto from Pixabay

Carlyle's $4B Purchase Of Baxter's Kidney Division Backed By Ares And HPS Financing

<a href="https://www.bloomberg.com/news/articles/2024-07-23/ares-hps-line-up-3-billion-debt-for-carlyle-s-baxter-unit-bid?sref=y3YMCJ4e" title="https://www.bloomberg.com/news/articles/2024-07-23/ares-hps-line-up-3-billion-debt-for-carlyle-s-baxter-unit-bid?sref=y3YMCJ4e">https://www.bloomberg.com/news/articles/2024-07-23/ares-hps-line-up-3-billion-debt-for-carlyle-s-baxter-unit-bid?sref=y3YMCJ4e</a>

'Ares, HPS Line Up $3 Billion Debt for Carlyle's Baxter Unit Bid' - Bloomberg

Baxter International Says Some Operations Being Resumed On Manual Basis Until Full Restoration Is Possible

Biotech

FDA Says Baxter Issues Urgent Medical Device Recall For Volar System Single-Patient Use Circuit; Baxter's Recall Is Due To Reports Of The Handset Plug Disconnecting From The Nebulizer Port On The Blue Ventilator Adapter

FDA Says Baxter Recalls LIFE2000 Ventilator Due To Potential Failure Of Battery Charging Dongle; Identifies Baxter LIFE2000 Ventilator Recall As Most Serious Type

U.S. stock futures were higher this morning, with the Dow futures gaining around 200 points on Monday.
Shares of AutoNation Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AN#NYSE">AN</a>) fell sharply in <a href="https://www.benzinga.com/quote/AN/news">today's pre-market trading</a>.
AutoNation said its second-quarter profit will be negatively impacted by $1.50 per share due to the cyber incident at retail technology provider CDK Global.
AutoNation shares fell 6.1% to $160.01 in the pre-market trading session.
Here are some big stocks recording losses in today's pre-market trading session.
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<li>Logistic Properties of the Americas (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPA#NYSE">LPA</a>) shares dipped 16.8% to $15.30 in pre-market trading after surging 88% on Friday.</li>
<li>Oculis Holding AG (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OCS#NASDAQ">OCS</a>) shares fell 12.1% to $10.00 in pre-market trading.</li>
<li>Graphjet Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GTI#NASDAQ">GTI</a>) shares declined 8.9% to $4.40 in pre-market trading after gaining over 12% on Friday.</li>
<li>UTime Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WTO#NASDAQ">WTO</a>) shares declined 7.9% to $0.9950 in pre-market trading after surging 8% on Friday.</li>
<li>SunPower Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPWR#NASDAQ">SPWR</a>) dipped 7.4% to $2.49 in pre-market trading after gaining around 6% on Friday.</li>
<li>SolarEdge Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEDG#NASDAQ">SEDG</a>) shares fell 7.1% to $29.39 in pre-market trading after gaining more than 5% on Friday.</li>
<li>Sunnova Energy International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOVA#NYSE">NOVA</a>) shares declined 6.5% to $7.18 in pre-market trading. Sunnova Energy International is expected to release its second quarter results after the closing bell on July 31.</li>
<li>Sunrun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>) shares fell 6.2% to $16.14 in pre-market trading after gaining around 7% on Friday.</li>
<li>Uranium Royalty Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UROY#NASDAQ">UROY</a>) shares declined 5.7% to $2.48 in pre-market trading.</li>
<li>Ribbon Communications Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RBBN#NASDAQ">RBBN</a>) shares slipped 5.7% to $3.50 in pre-market trading. Ribbon Communications is scheduled to report financial results for the second quarter after the closing bell on Wednesday, July 24.</li>
<li>Enphase Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>) shares fell 5.5% to $112.77 in pre-market trading.</li>
<li>Baxter International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAX#NYSE">BAX</a>) shares fell 2.3% to $34.50 in pre-market trading after Morgan Stanley downgraded the stock from Equal-Weight to Underweight and lowered its price target from $39 to $30.</li>
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AutoNation, Baxter International And Other Big Stocks Moving Lower In Monday's Pre-Market Session

WIIM

Baxter International shares are trading lower after Morgan Stanley downgraded the stock from Equal-Weight to Underweight and lowered its price target from $39 to $30.

Morgan Stanley analyst Patrick Wood downgrades Baxter Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAX#NYSE">BAX</a>) from Equal-Weight to Underweight and lowers the price target from $39 to $30.

Downgrades

Price Target

Morgan Stanley Downgrades Baxter Intl to Underweight, Lowers Price Target to $30

Citigroup analyst Joanne Wuensch maintains Baxter Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAX#NYSE">BAX</a>) with a Neutral and lowers the price target from $38 to $37.

Citigroup Maintains Neutral on Baxter Intl, Lowers Price Target to $37

<a href="https://www.baxter.com/baxter-newsroom/baxter-issues-urgent-medical-device-recall-life2000-ventilator-due-potential" title="https://www.baxter.com/baxter-newsroom/baxter-issues-urgent-medical-device-recall-life2000-ventilator-due-potential">https://www.baxter.com/baxter-newsroom/baxter-issues-urgent-medical-device-recall-life2000-ventilator-due-potential</a>

Baxter International Issues Urgent Medical Device Recall For LIFE2000 Ventilator Due To Potential Battery Charger Dongle Damage; Reports Indicate Improper Charging; One Serious Injury Complaint Received; Working With Customers To Replace Affected Devices

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Below are some instances of options activity happening in the Health Care sector: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>AMGN</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>07/19/24</td>
<td>$320.00</td>
<td>$27.4K</td>
<td>2.5K</td>
<td style="text-align: right;">277</td>
</tr>
<tr>
<td>LLY</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>08/16/24</td>
<td>$930.00</td>
<td>$26.5K</td>
<td>433</td>
<td style="text-align: right;">140</td>
</tr>
<tr>
<td>TVTX</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>12/19/25</td>
<td>$17.50</td>
<td>$25.2K</td>
<td>0</td>
<td style="text-align: right;">60</td>
</tr>
<tr>
<td>ABBV</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$125.00</td>
<td>$42.9K</td>
<td>426</td>
<td style="text-align: right;">30</td>
</tr>
<tr>
<td>ASRT</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$3.00</td>
<td>$68.8K</td>
<td>42</td>
<td style="text-align: right;">25</td>
</tr>
<tr>
<td>HIMS</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$20.00</td>
<td>$72.0K</td>
<td>12.0K</td>
<td style="text-align: right;">19</td>
</tr>
<tr>
<td>CVS</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$52.50</td>
<td>$98.4K</td>
<td>359</td>
<td style="text-align: right;">2</td>
</tr>
<tr>
<td>BMY</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>05/16/25</td>
<td>$33.00</td>
<td>$194.2K</td>
<td>274</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>ANNX</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>07/19/24</td>
<td>$2.50</td>
<td>$37.5K</td>
<td>451</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>BAX</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>08/23/24</td>
<td>$36.00</td>
<td>$94.7K</td>
<td>0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These itemized elaborations have been created using the accompanying table. 
• For AMGN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>), we notice a call option sweep that happens to be bearish, expiring in 9 day(s) on July 19, 2024. This event was a transfer of 53 contract(s) at a $320.00 strike. This particular call needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $27.4K, with a price of $516.0 per contract. There were 2586 open contracts at this strike prior to today, and today 277 contract(s) were bought and sold. 
• Regarding LLY (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>), we observe a call option trade with bearish sentiment. It expires in 37 day(s) on August 16, 2024. Parties traded 6 contract(s) at a $930.00 strike. The total cost received by the writing party (or parties) was $26.5K, with a price of $4418.0 per contract. There were 433 open contracts at this strike prior to today, and today 140 contract(s) were bought and sold. 
• For TVTX (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TVTX#NASDAQ">TVTX</a>), we notice a put option trade that happens to be bullish, expiring in 527 day(s) on December 19, 2025. This event was a transfer of 30 contract(s) at a $17.50 strike. The total cost received by the writing party (or parties) was $25.2K, with a price of $840.0 per contract. There were 0 open contracts at this strike prior to today, and today 60 contract(s) were bought and sold. 
• For ABBV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>), we notice a call option trade that happens to be bearish, expiring in 191 day(s) on January 17, 2025. This event was a transfer of 10 contract(s) at a $125.00 strike. The total cost received by the writing party (or parties) was $42.9K, with a price of $4290.0 per contract. There were 426 open contracts at this strike prior to today, and today 30 contract(s) were bought and sold. 
• For ASRT (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASRT#NASDAQ">ASRT</a>), we notice a put option trade that happens to be bullish, expiring in 191 day(s) on January 17, 2025. This event was a transfer of 475 contract(s) at a $3.00 strike. The total cost received by the writing party (or parties) was $68.8K, with a price of $145.0 per contract. There were 42 open contracts at this strike prior to today, and today 25 contract(s) were bought and sold. 
• Regarding HIMS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HIMS#NYSE">HIMS</a>), we observe a call option sweep with bearish sentiment. It expires in 191 day(s) on January 17, 2025. Parties traded 150 contract(s) at a $20.00 strike. This particular call needed to be split into 20 different trades to become filled. The total cost received by the writing party (or parties) was $72.0K, with a price of $480.0 per contract. There were 12074 open contracts at this strike prior to today, and today 19 contract(s) were bought and sold. 
• Regarding CVS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>), we observe a call option sweep with bearish sentiment. It expires in 100 day(s) on October 18, 2024. Parties traded 155 contract(s) at a $52.50 strike. This particular call needed to be split into 17 different trades to become filled. The total cost received by the writing party (or parties) was $98.4K, with a price of $635.0 per contract. There were 359 open contracts at this strike prior to today, and today 2 contract(s) were bought and sold. 
• Regarding BMY (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>), we observe a put option trade with bullish sentiment. It expires in 310 day(s) on May 16, 2025. Parties traded 1750 contract(s) at a $33.00 strike. The total cost received by the writing party (or parties) was $194.2K, with a price of $111.0 per contract. There were 274 open contracts at this strike prior to today, and today 0 contract(s) were bought and sold. 
• For ANNX (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANNX#NASDAQ">ANNX</a>), we notice a call option trade that happens to be bullish, expiring in 9 day(s) on July 19, 2024. This event was a transfer of 150 contract(s) at a $2.50 strike. The total cost received by the writing party (or parties) was $37.5K, with a price of $250.0 per contract. There were 451 open contracts at this strike prior to today, and today 0 contract(s) were bought and sold. 
• For BAX (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAX#NYSE">BAX</a>), we notice a call option trade that happens to be bullish, expiring in 44 day(s) on August 23, 2024. This event was a transfer of 1298 contract(s) at a $36.00 strike. The total cost received by the writing party (or parties) was $94.7K, with a price of $73.0 per contract. There were 0 open contracts at this strike prior to today, and today 0 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more news on unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

ABBV

AMGN

ANNX

ASRT

Hims & Hers Health, Inc. Class A Common Stock

HIMS

TVTX

10 Health Care Stocks Whale Activity In Today's Session

Carlyle Group (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cg#NASDAQ">CG</a>) is considering acquiring Baxter International&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bax#NYSE">BAX</a>) kidney care spinoff, Vantive, in a deal valued at more than $4 billion, including debt. The news was first reported by Wall Street Journal, citing people familiar with the matter.
Per the source, the companies started exclusive negotiations in late June and an agreement could be announced as soon as this week. However, there is a chance that the discussions will fail or another bidder may emerge.
More than a year after announcing plans to separate the unit due to supply-chain issues and waning demand for dialysis operations, Baxter said in March that it has been in talks with selected private equity investors about the possibility of selling the kidney care unit.
Baxter plans to spin off Vantive in the second half of 2024, intending to separate its acute therapies and renal care business.
In 2023, Carlyle pulled back from investments in U.S. consumer brands. With the exit, CG&#39;s private equity business, U.S. strategy, focused on investments in health care, government services, industrials, technology and financial services.
Markedly, Carlyle has been witnessing solid organic growth in the past several years on the back of strategic investments. The company is focusing on scaling its investment platforms, building out infrastructure credit and real estate credit and foraying into new avenues. These efforts are expected to support revenue growth. Our model estimates total revenues to witness a CAGR of 12.8% in the next three years ending 2026.
Also, the company&#39;s global presence and efforts to expand business are expected to continue aiding asset under management growth and boost its investment performance.
Carlyle would be making a big move if it were to acquire Vantive, since private equity deal-making is gradually picking up steam.
Recently, Piper Sandler Companies (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pipr#NYSE">PIPR</a>) announced a definitive agreement to buy Aviditi Advisors, an alternative investment bank. The acquisition will enhance the company&#39;s capabilities in fundraising, secondary solutions and direct investment capital. Thus, it will further solidify PIPR&#39;s leadership position in the private equity M&amp;A and capital markets sectors.
Shares of CG have gained 31.7% in the past year compared with the industry&#39;s rise of 25.4%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/cd/70793.jpg?v=36748183" />
Image Source: Zacks Investment Research
CG currently carries a Zacks Rank #2 (Buy).
<a href="https://www.zacks.com/stock/news/2298575/carlyle-group-cg-eyes-buyout-of-baxter-s-kidney-care-unit?cid=CS-BENZ-FT-analyst_blog|company_news_finance_sector-2298575">To read this article on Zacks.com click here.</a>

Carlyle Group Eyes Buyout of Baxter's Kidney Care Unit

Shares of&nbsp;Baxter International (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bax#NYSE">BAX</a>) have gained 2.8% since Jun 26, after the company announced the recall of its Life2000 Ventilation System. Though the share price had declined following the news, it recovered following reports of potential discussion on divestment of BAX&#39;s kidney care segment.
The device, a portable ventilator for patients suffering from chronic respiratory failure or other breathing issues, has been recalled by Baxter. The recall follows the detection of damaged battery charger dongles, which can prevent the ventilator&#39;s internal battery from charging. Baxter had acquired Life2000 through its $10.5 billion purchase of Hillrom in 2021.
<h3>Significance of Life2000</h3>
Per Baxter, Life2000&#39;s recall is critical as it directly impacts the reliability of the Life2000 ventilators, potentially leaving patients without necessary respiratory support. Damaged dongles prevent battery charging, which could lead to ventilator failure and severe health consequences. Per the FDA&#39;s Database entry, Baxter has strictly advised customers to check for damage, maintain backup devices and replace faulty chargers promptly. This is the latest in a series of recalls since Baxter acquired Hillrom, underscoring the ongoing challenges in ensuring the safety and efficacy of these medical devices.
<h3>More on the News</h3>
According to a Jun 26 entry in the FDA&lsquo;s recall database, the recall affected more than 2,500 units distributed in the United States. The FDA has labeled the recall as a Class I event, its severest classification.
In 2023, the company also recalled thousands of Life2000 systems due to the risk of patient oxygen desaturation when the devices were connected to third-party oxygen concentrators. At the time, Baxter reported that it received no reports of death related to the safety problem, though there were reports of hospitalizations.
Life2000 is not the only device of Hillrom that Baxter was forced to recall since the acquisition. In 2022, Baxter felt the urgent need to recall the Volara ventilator system after an injury and two deaths were tied to a device malfunction.
<h3>Industry Prospects</h3>
Per a report by MARKETSANDMARKETS, the global ventilator market size was valued at $4.2 billion in 2023. It is anticipated to reach $5.7 billion in 2028 at a CAGR of 6.4%
The robust growth will be driven by unhealthy diet, obesity and physical inactivity, which are some of the leading risk factors contributing to the burden of respiratory diseases.
<h3>Recent Developments</h3>
In May, Baxter announced the FDA approval of an expanded indication for Clinolipid (Lipid Injectable Emulsion) to include pediatric patients, including preterm and term neonates. Clinolipid is a proprietary mixed oil lipid emulsion designed to provide essential fatty acids and calories in parenteral nutrition for patients who cannot receive adequate oral or enteral nutrition.
In the same month,Baxter announced new data demonstrating that expanded hemodialysis (HDx therapy), enabled by the Theranova dialyzer, is associated with approximately a 25% lower all-cause mortality risk over up to four years compared to high-flux hemodialysis (HF HD). This finding highlights the potential of HDx therapy to significantly improve patient outcomes in long-term dialysis treatment.
<h3>Price Performance</h3>
Shares of Baxter have declined 9.7% so far this year against the industry&#39;s&nbsp;1.8% rise. The S&amp;P 500 has witnessed a 17.5% rise in the same time frame.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/48/70609.jpg?v=2054455183" />
Image Source: Zacks Investment Research
<h3>Zacks Rank &amp; Other Key Picks</h3>
Currently, Baxter carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are DaVita Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dva#NYSE">DVA</a>), Universal Health Services (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uhs#NYSE">UHS</a>) and Ecolab Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ecl#NYSE">ECL</a>).
DaVita, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 13.6%. DVA&#39;s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%.
DaVita&#39;s shares have gained 43.4% compared with the industry&#39;s 15.2% rise in the past year.
Universal Health Services, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 14.80%. UHS&#39;s earnings surpassed estimates in each of the trailing four quarters, with the average being 8.12%.
Universal Health Services has gained 21.3% against the industry&#39;s 20.4% decline in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 14.3%. ECL&#39;s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.3%.
Ecolab&#39;s shares have rallied 31.3% against the industry&#39;s 12.9% decline in the past year.
<a href="https://www.zacks.com/stock/news/2297793/baxter-bax-recovers-after-life2000-ventilation-systems-recall?cid=CS-BENZ-FT-analyst_blog|company_news_medical_sector-2297793">To read this article on Zacks.com click here.</a>

Baxter Recovers After Life2000 Ventilation Systems Recall

Carlyle Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CG#NYSE">CG</a>) is reportedly in exclusive talks to acquire Baxter International Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAX#NYSE">BAX</a>) kidney-care spinoff, Vantive, in a deal valued at over $4 billion, including debt.
The companies began exclusive negotiations in late June, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/finance/investing/carlyle-in-advanced-talks-to-acquire-baxters-vantive-2902df8d?mod=latest_headlines" rel="noreferrer noopener">reported</a>, citing sources familiar with the matter. An agreement could be announced in the coming weeks, though there&#8217;s a possibility that the discussions might fall through or another bidder could emerge.
Baxter had announced plans to spin off Vantive in the second half of this year, intending to separate its acute therapies <a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38595653/why-is-medical-device-maker-baxter-stock-trading-lower-on-thursday" rel="noreferrer noopener">and renal care business</a>.
In 2023, Baxter reported that Vantive generated approximately <a target="_blank" href="https://www.benzinga.com/news/earnings/24/02/37014544/baxter-says-2023-performance-reflects-strategic-initiatives-with-new-operating-model-without-biopha" rel="noreferrer noopener">$4.5 billion in revenue</a>.
The company intended for the separation to either involve a sale to a private equity firm or a spinoff into a public entity.
This strategic move aligns with Baxter&#8217;s efforts to streamline operations and focus on <a target="_blank" href="https://www.benzinga.com/news/23/01/30314459/baxter-plans-divesting-renal-care-business-into-separate-public-company-shares-fall" rel="noreferrer noopener">core business areas</a>.
The WSJ report added that acquiring Vantive would mark a significant transaction for Carlyle as there is a gradual revival in private equity deal-making.
Leveraged buyouts in the private equity sector have seen a 45% increase from the previous year, with deals amounting to $109.2 billion as of early July, the WSJ report added, citing data from Dealogic.
This potential acquisition aligns with Carlyle&#8217;s ongoing strategic adjustments, including the recent appointment of Steve Wise, the former head of healthcare, as the co-head of Americas Corporate Private Equity.
As Carlyle navigates this evolving landscape, the possible acquisition of Vantive underscores its commitment to expanding its healthcare portfolio and capitalizing on opportunities in the medical device sector.
Industry observers and investors alike will closely watch the outcome of these exclusive negotiations.
Price Action: BAX shares closed at $34.91 on Friday.
Image via Unsplash

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Media

Carlyle Eyes $4B Acquisition Of Baxter's Kidney-Care Unit Vantive: Report

Deal would value the Baxter spinoff at more than $4 billion
<a href="https://www.wsj.com/finance/investing/carlyle-in-advanced-talks-to-acquire-baxters-vantive-2902df8d?mod=latest_headlines" title="https://www.wsj.com/finance/investing/carlyle-in-advanced-talks-to-acquire-baxters-vantive-2902df8d?mod=latest_headlines">https://www.wsj.com/finance/investing/carlyle-in-advanced-talks-to-acquire-baxters-vantive-2902df8d?mod=latest_headlines</a>

'Carlyle in Advanced Talks to Acquire Baxter's Vantive' - WSJ

During the last three months, 4 analysts shared their evaluations of Baxter Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAX#NYSE">BAX</a>), revealing diverse outlooks from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $39.75, along with a high estimate of $45.00 and a low estimate of $36.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 11.67%. 
<img src="https://www.benzinga.com/files/images/story/2024/1719943307_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive Baxter Intl. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vijay Kumar</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$45.00</td>
<td>$46.00</td>
</tr>
<tr>
<td>David Roman</td>
<td>Goldman Sachs</td>
<td>Announces</td>
<td>Neutral</td>
<td>$36.00</td>
<td>-</td>
</tr>
<tr>
<td>Joanne Wuensch</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$38.00</td>
<td>$44.00</td>
</tr>
<tr>
<td>Joshua Jennings</td>
<td>TD Cowen</td>
<td>Announces</td>
<td>Hold</td>
<td>$40.00</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Baxter Intl. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Baxter Intl compared to the broader market.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
To gain a panoramic view of Baxter Intl's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/BAX/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Baxter Intl analyst ratings.</a>
<h2>Delving into Baxter Intl's Background</h2>
Baxter offers a variety of medical instruments and supplies to caregivers. It enhanced its portfolio of hospital-focused offerings by acquiring Hillrom in late 2021, which added basic equipment, including hospital beds, to the portfolio, although about half of Hillrom's revenue comes from more digitally connected offerings like its smart beds and Voalte medical communications app. From its legacy operations, Baxter offers tools to help patients with acute and chronic kidney failure, which it plans to spin off by mid-2024. It also sells a variety of injectable therapies for use in care settings, such as IV pumps, administrative sets, and solutions; nutritional products; and surgical sealants and hemostatic agents.
<h3>Baxter Intl's Economic Impact: An Analysis</h3>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Positive Revenue Trend: Examining Baxter Intl's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.25% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 1.03%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Baxter Intl's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.45%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.13%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Baxter Intl's debt-to-equity ratio stands notably higher than the industry average, reaching 1.73. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
<h2>What Are Analyst Ratings?</h2>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Assessing Baxter Intl: Insights From 4 Financial Analysts

Evercore ISI Group analyst Vijay Kumar maintains Baxter Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAX#NYSE">BAX</a>) with a Outperform and lowers the price target from $46 to $45.

Evercore ISI Group Maintains Outperform on Baxter Intl, Lowers Price Target to $45

Baxter Intl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAX#NYSE">BAX</a>) short percent of float has fallen 20.54% since its last report. The company recently reported that it has 7.97 million shares sold short, which is 2.05% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.46 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Baxter Intl Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1717776920_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Baxter Intl has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Baxter Intl's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Baxter Intl's peer group average for short interest as a percentage of float is 4.76%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

How Is The Market Feeling About Baxter Intl?

In the latest quarter, 5 analysts provided ratings for Baxter Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAX#NYSE">BAX</a>), showcasing a mix of bullish and bearish perspectives.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Baxter Intl, revealing an average target of $40.6, a high estimate of $45.00, and a low estimate of $36.00. Experiencing a 4.09% decline, the current average is now lower than the previous average price target of $42.33. 
<img src="https://www.benzinga.com/files/images/story/2024/1717070473_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
The analysis of recent analyst actions sheds light on the perception of Baxter Intl by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>David Roman</td>
<td>Goldman Sachs</td>
<td>Announces</td>
<td>Neutral</td>
<td>$36.00</td>
<td>-</td>
</tr>
<tr>
<td>Joanne Wuensch</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$38.00</td>
<td>$44.00</td>
</tr>
<tr>
<td>Joshua Jennings</td>
<td>TD Cowen</td>
<td>Announces</td>
<td>Hold</td>
<td>$40.00</td>
<td>-</td>
</tr>
<tr>
<td>Joanne Wuensch</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Neutral</td>
<td>$44.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>Travis Steed</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Neutral</td>
<td>$45.00</td>
<td>$42.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Baxter Intl. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Baxter Intl compared to the broader market.</li>
<li>Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Baxter Intl's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Baxter Intl's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/BAX/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Baxter Intl analyst ratings.</a>
<h2>Delving into Baxter Intl's Background</h2>
Baxter offers a variety of medical instruments and supplies to caregivers. It enhanced its portfolio of hospital-focused offerings by acquiring Hillrom in late 2021, which added basic equipment, including hospital beds, to the portfolio, although about half of Hillrom's revenue comes from more digitally connected offerings like its smart beds and Voalte medical communications app. From its legacy operations, Baxter offers tools to help patients with acute and chronic kidney failure, which it plans to spin off by mid-2024. It also sells a variety of injectable therapies for use in care settings, such as IV pumps, administrative sets, and solutions; nutritional products; and surgical sealants and hemostatic agents.
<h3>Unraveling the Financial Story of Baxter Intl</h3>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Baxter Intl displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 2.25%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 1.03%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Baxter Intl's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.45%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Baxter Intl's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.13%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Baxter Intl's debt-to-equity ratio stands notably higher than the industry average, reaching 1.73. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
<h2>What Are Analyst Ratings?</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Unveiling 5 Analyst Insights On Baxter Intl

Goldman Sachs analyst David Roman initiates coverage on Baxter Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAX#NYSE">BAX</a>) with a Neutral rating and announces Price Target of $36.

Initiation

Goldman Sachs Initiates Coverage On Baxter Intl with Neutral Rating, Announces Price Target of $36

Baxter International (BAX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Larry Biegel...

Baxter International Hold Rating Amid Kidney Care Business Sale and Financial Impact Analysis

Growth stocks trading at lower P/E ratio than the industry average can be a suitable investment choice. Top picks now could be Cardinal Health (CAH), Baxter International (BAX), and DocuSign (DOCU). Keep reading... Investing in growth stocks appears as an ideal strategy for various investors to attain long-term growth, investment appreciation, and stable income. Rapid demand, cutting-edge technologies, and market evolution offer various growth prospects in the medical and technology industry.
Amid this backdrop, investors could consider fundamentally sound growth stocks Cardinal Health, Inc. (<a href="https://stocknews.com/stock/CAH/">CAH</a>), Baxter International Inc. (<a href="https://stocknews.com/stock/BAX/">BAX</a>), and DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>) to buy.
Amid widespread labor shortages and escalating costs, adoption of artificial intelligence (AI) and similar technologies offers potential solutions in the <a href="https://www.deloitte.com/global/en/Industries/life-sciences-health-care/analysis/global-health-care-outlook.html">medical industry</a>. AI is contributing in streamlining health care processes with qualities like precision and efficiency in administration, operations, supply chain and patient care.
Also, remote technologies reshape care delivery, expanding scope of medical services. With this advancement, <a href="https://www.statista.com/outlook/hmo/medical-technology/medical-devices/worldwide">medical devices market</a> is predicted to reach revenue of $509.90 billion in 2024 with cardiology devices market emerging the largest, with expected volume of $73.42 billion. Also, the industry is expected to register growth at a CAGR of 5.7% until 2029.
Besides, the global Software as a Service (SaaS) market is projected to grow from $317.55 billion in 2024 to $1,228.87 billion by 2032, growing at a <a href="https://www.fortunebusinessinsights.com/software-as-a-service-saas-market-102222">CAGR of 18.4%</a>. The market growth can be attributed to factors like rise in adoption of public &amp; hybrid cloud-based solutions, integration with other tools, and centralized data-driven analytics.
Given these favorable market trends, let us deep dive into the fundamentals of the top growth stocks.
Cardinal Health, Inc. (<a href="https://stocknews.com/stock/CAH/">CAH</a>)
CAH operates as a healthcare services and products company internationally. It offers customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. It operates through two segments, Pharmaceutical; and Medical.
In terms of forward non-GAAP P/E, CAH is trading at 13.04x, 30% lower than the industry average of 18.62x. Likewise, the stock's forward EV/Sales multiple of 0.11 is 96.6% lower than the industry average of 3.32. Also, its forward <a href="https://www.investopedia.com/ask/answers/032515/what-considered-favorable-price-sales-ratio.asp#:~:text=The%20Price%2Dto%2DSales%20Ratio,to%20deliver%20%241%20of%20revenue.">Price/Sales</a> of 0.10x is considerably lower than the industry average of 3.59x.
CAH's revenue and EBITDA have grown at respective CAGRs of 12.1% and 1% over the past three years. The company's EBIT has increased 3.5% over the same timeframe, while its normalized net income and total assets have improved at CAGRs of 5.3% and 1.5%, respectively.
On May 8, CAH's Board of Directors approved an increase to its quarterly dividend, to $0.5056 per share, out of the company's capital surplus. The dividend will be payable on July 15, 2024 to shareholders of record at the close of business on July 1, 2024.
CAH pays an annual dividend of $2.02, which translates to a yield of 2.11% at the current share price. Its four-year average dividend yield is 3%. Moreover, the company's dividend payouts have increased at a CAGR of 1% over the past three years. Kroger has raised its dividends for 29 consecutive years.
On April 2, CAH commenced the construction of a new 350,000 square-foot logistics center in Columbus, Ohio, to be served as a centralized replenishment center for the distribution of over-the-counter consumer health products in support of its core pharmaceutical business. The center will widen its capabilities and serve as a centralized hub for distribution of consumer health products.
During the third quarter that ended March 31, 2024, CAH's revenue increased 8.8% year-over-year to $54.91 billion. Its non-GAAP operating earnings of $666 million indicates growth of 9.9% from the year-ago value. Non-GAAP net earnings and EPS attributable to CAH came in at $509 million and $2.08, up 13.9% and 19.5% from the prior year's quarter, respectively.
Furthermore, the company's total assets stood at $45.88 billion as of March 31, 2024, versus $43.42 billion as of June 30, 2023.
For the fiscal year 2024, CAH estimates its non-GAAP EPS attributable to CAH to $7.30 to $7.40. The company raised its Pharmaceutical and Specialty Solutions segment profit from 7% to 9% growth to 8.5% to 9.5% growth.
Analysts expect CAH's revenue for the fourth quarter (ended June 2024) to increase 9.5% year-over-year to $58.50 billion, while the company's EPS for the same quarter is expected to grow 11.7% year-over-year to $1.73. Furthermore, the company surpassed the consensus EPS estimates in each of the trailing four quarters.
Shares of CAH have surged 2.4% over the past year to close the last trading session at $96.91.
CAH's bright prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Value, Growth and Sentiment. Within the <a href="https://stocknews.com/category/medical-services/">Medical - Services</a> industry, CAH is ranked #4 out of 59 stocks.
<a href="https://stocknews.com/stock/CAH/">Click here</a> to access additional ratings of CAH for Quality, Momentum, and Stability.
Baxter International Inc. (<a href="https://stocknews.com/stock/BAX/">BAX</a>)
BAX develops and provides a portfolio of healthcare products globally. The company operates in four segments: Medical Products and Therapies; Healthcare Systems and Technologies; Pharmaceuticals; and Kidney Care.
In terms of forward non-GAAP P/E, BAX is trading at 11.97x, 35.7% lower than the industry average of 18.62x. Similarly, the stock's forward Price/Sales multiple of 1.18 is 67.2% lower than the industry average of 3.59. Further, its forward EV/EBITDA of 9.77x is 23.7% lower than the industry average of 12.80x.
BAX's revenue and EBITDA have grown at respective CAGRs of 8% and 2.2% over the past three years. The company's net income has increased 35.4% over the same timeframe, while its EPS and total assets have improved at CAGRs of 36.1% and 12.6%, respectively.
On May 13, BAX secured U.S. FDA approval of an expanded indication for Clinolipid (Lipid Injectable Emulsion) to be used in pediatric patients, including preterm and term neonates. The expanded indication demonstrates BAX's commitment to meet the diverse nutritional needs of patients, from preterm neonates to adults.
On April 11, BAX expanded its pharmaceuticals portfolio with five injectable product launched in the U.S. These products features ready-to-use formulations to help support patient safety and offer added convenience for healthcare professionals.
The five new launches reinforced BAX's focus on differentiated products and enhanced its pharmaceuticals portfolio in critical therapeutic areas.
For the first quarter that ended March 31, 2024, BAX's net sales increased 2.2% year-over-year to $3.59 billion. Its adjusted operating income grew 17.3% from the year-ago value to $515 million. Adjusted net income attributable to Baxter stockholders and EPS came in at $331 million and $0.65, up 11.4% and 10.2% from the prior year's quarter, respectively.
Analysts expect BAX's revenue and EPS for the second quarter (ended June 2024) to increase 1.2% and 20.4% year-over-year to $3.75 billion and $0.66, respectively. Moreover, the company topped the consensus EPS and revenue estimates in three of the trailing four quarters.
Shares of BAX have gained 2.9% over the past month to close the last trading session at $33.84.
BAX's sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has a B grade for Value and Growth. Within the <a href="https://stocknews.com/category/medical-devices-equipment/">Medical – Devices &amp; Equipment</a> industry, BAX is ranked #20 of 132 stocks.
<a href="https://stocknews.com/stock/BAX/">Click here</a> to access additional ratings of BAX for Momentum, Quality, Sentiment, and Stability.
DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>)
DOCU offers electronic signature solution internationally. The company offers e-signature solution enabling sending and signing of agreements, Contract Lifecycle Management which automates workflows, Document Generation streamlines the process of generating new, custom agreements, and Gen for Salesforce, to automatically generate agreements.
In terms of forward non-GAAP P/E, DOCU is trading at 16.77x, 30.7% lower than the industry average of 24.19x. Further, the stock's forward EV/EBIT multiple of 12.60 is lower than the 20.73 industry average. Also, its forward Price/Cash Flow of 12.14x is 48.3% lower than the industry average of 23.51x.
DOCU's revenue has grown at a CAGR of 20% over the past three years. The company's total assets has increased 8.4% over the same timeframe, while its levered free cash flow has improved at CAGR of 19.8%.
On June 4, DOCU announced the upcoming launch of its new Docusign Connector for SAP Ariba solutions as a new offering to automate workflows between Docusign CLM and SAP Ariba solutions to help businesses accelerate time to value and eliminate friction in source-to-pay agreement processes.
The new connector will be available globally starting from September. The launch reinforces DOCU's commitment to its partnership with SAP and its vision to transform agreement processes across the source-to-pay workflow.
On May 31, DOCU acquired Lexion, a leading AI-powered agreement management company. The strategic acquisition strengthens DOCU's position in Intelligent Agreement Management and introduces new AI-assisted capabilities to the Docusign IAM platform.
During the first quarter that ended April 30, 2024, DOCU's total revenue increased 7.3% year-over-year to $709.64 million. Its non-GAAP gross profit grew 6.5% from the year-ago value to $582.17 million. The company's non-GAAP income from operations of $202.09 million indicates growth of 15% from the prior year's quarter.
In addition, the company's non-GAAP net income came in at $172.84 million and $0.82 per share, up 15.1% and13.9% from the prior year's quarter, respectively.
As per the company's second quarter 2024 guidance, DOCU expects total revenue between $725 million and $729 million, and its subscription revenue is expected to be within a range from $705 million to $709 million.
For the fiscal full year, the company expects total revenue of $2.92 billion - $2.93 billion and subscription revenue of $2.84 billion to $2.85 billion.
Analysts expect DOCU's revenue and EPS for the second quarter (ending July 2024) to increase 5.7% and 11.6% year-over-year to $727.19 million and $0.80, respectively. Moreover, the company topped the consensus revenue and EPS estimates in all of the trailing four quarters.
DOCU's stock has surged 5.2% over the past month and 5.2% over the past year to close the last trading session at $53.56.
DOCU's POWR Ratings reflect its bright prospects. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system.
DOCU has an A grade for Quality and Growth. The stock also has a B grade for Value. The stock is ranked #2 among the 19 stocks in the A-rated <a href="https://stocknews.com/category/software-saas/">Software - SAAS</a> industry.
To access DOCU's other ratings for Momentum, Sentiment, and Stability, <a href="https://stocknews.com/stock/DOCU/">click here</a>.
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<hr />
CAH shares were trading at $97.02 per share on Monday afternoon, up $1.13 (+1.18%). Year-to-date, CAH has declined -2.82%, versus a 17.44% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/cah-bax-docu-3-growth-stocks-with-p-e-ratios-below-industry-average/>3 Growth Stocks With P/E Ratios Below Industry Average</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Growth Stocks With P/E Ratios Below Industry Average

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
There are three main drivers of a stock&rsquo;s return: growth, the change in price-to-earnings (P/E) multiple and capital return. While investors often focus on the growth angle, an upward rating in multiple can also be a significant return driver for bargain stocks.



The following three bargain stocks have millionaire-maker potential. First, their forward P/E multiple reflects a 30% discount to the S&amp;P 500&rsquo;s valuation despite their solid growth prospects. If their P/E ratio matches the market&rsquo;s multiple, these stocks could soar.



Beyond valuation, these stocks have pursued attractive capital returns through dividends or buybacks. Due to their excellent free cash flow generation, these companies have kept excellent shareholder returns. Furthermore, continuing accretive buybacks at these bargain levels will support stock prices.



Considering the undervaluation, growth prospects and continued buybacks, these bargain stocks offer solid return prospects. Moreover, there is a significant margin of safety at these trough valuations.



<h2>AutoNation (AN)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/12/autonation-an-1600-300x169.jpg" alt="Exterior of the Autonation Toyota car dealership"><div>Source: RYO Alexandre / Shutterstock.com</div></div>Warren Buffett has noted that &ldquo;the best business is one that is a royalty on the growth of others.&rdquo; AutoNation (NYSE:<a href="https://investorplace.com/stock-quotes/an-stock-quote/">AN</a>), one of the largest auto dealerships in the U.S., fits this description. It doesn&rsquo;t invest heavily in auto manufacturing. Instead, it earns a markup on autos produced by various manufacturers.



At these levels, this auto dealer is one of the stocks that would benefit from a P/E rating. Based on <a href="https://seekingalpha.com/symbol/AN/earnings/estimates">analyst estimates</a>, it trades at 8 times 2024 estimates. That&rsquo;s a steep discount for a company that has had positive revenue growth for the last four quarters.



Historically, AutoNation has been an uber cannibal. In <a href="https://investors.autonation.com/news-and-events/press-releases/press-release-details/2024/AutoNation-Reports-Fourth-Quarter-and-Full-Year-Results/default.aspx#:~:text=For%20the%20full%20year%202023,since%20the%20end%20of%202020.">Q4 2023 and full year 2023 results</a> it revealed that it had reduced share count by over 50% since the end of 2020. These repurchases continued in 2023, with the company buying back 6.4 million shares for $864 million, reducing share count by 13%. What&rsquo;s more, as of the end of Q1 2024, the Board had authorized another $1 billion buyback.



Given the impressive capital return profile, it&rsquo;s no surprise that Bank of America has included AN stock in its <a href="https://www.investing.com/news/stock-market-news/bofa-top-10-us-ideas-for-q3-2024-432SI-3506840">third quarter Top 10 U.S. Ideas List</a>. They see upside to $210, which represents over 30% upside.



<h2>Baxter International (BAX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/bax1600a-300x169.jpg" alt="The logo for Baxter International Inc (BAX) is displayed on an office building."><div>Source: Shutterstock</div></div>This medical device maker has faced the perfect storm over the past four years. Increased leverage from the <a href="https://www.baxter.com/baxter-newsroom/baxter-completes-acquisition-hillrom-creating-15-billion-global-medtech-leader#:~:text=Baxter%20International%20Inc.,Hillrom%20share%20counts%20at%20closing).">Hillrom acquisition in 2021</a> and pandemic-related cost increases rocked the boat. Then, last year, it was hit by fears that its renal care business would face negative impacts from GLP-1 drugs. As a result, shares have sunk by over 60% from April 2020 highs around $93.



However, at these levels, Baxter International (NYSE:<a href="https://investorplace.com/stock-quotes/bax-stock-quote/">BAX</a>) stock is too cheap to ignore and one of the bargain stocks to buy. First, leverage levels will drop as the company uses proceeds from multiple asset sales to repay debt. In 2023, it sold its BioPharma Solutions unit for $4.25 billion. Also, Reuters <a href="https://www.reuters.com/markets/deals/carlyle-talks-buy-baxters-kidney-care-unit-source-says-2024-07-05/#:~:text=July%205%20(Reuters)%20%2D%20Private,matter%20told%20Reuters%20on%20Friday.">reported</a> on July 5 that Baxter was in talks to sell its kidney care unit for $4 billion to Carlyle Group (NASDAQ:<a href="https://investorplace.com/stock-quotes/cg-stock-quote/">CG</a>).



Secondly, most of its long-term, fixed contracts with large healthcare organizations are ending. As a result, Baxter will raise prices to stem the inflationary pressures that have plagued the business for two years.



As of this writing, Baxter yields 3.3% and is one of the best bargain stocks. It trades at 12 times forward non-GAAP P/E compared to a five-year average of 19. That&rsquo;s a significant discount, considering earnings are depressed but will rebound with higher pricing and cost efficiencies.



<h2>Corpay (CPAY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/money-transfer-coins-fintech-300x169.png" alt="An image of two cellphones with coins flying from one screen into the other. Fintech Growth Stocks"><div>Source: kentoh/Shutterstock</div></div>Corpay (NYSE:<a href="https://investorplace.com/stock-quotes/cpay-stock-quote/">CPAY</a>), formerly Fleetcor, helps businesses manage business-to-business payments and is a cost manager for corporations. Its largest segment, vehicle payments, accounts for 53% of revenues and helps customers manage and pay for vehicle-related expenses.



Due to the emergence of electric vehicles, CPAY stock has experienced weakness due to perceived risks to its fuel card business. However, it&rsquo;s important to note that even EVs use energy and there must be mediums to pay for it. To this end, the company is adapting to this transition and continues to add EV fleets to its customer base.



Moreover, its corporate payments segment, which helps businesses pay other businesses, will be a huge growth engine going forward. Corpay acquired <a href="https://www.paymentsdive.com/news/fleetcor-brazil-investment-zapay-acquisition-visa-fiserv/709755/">Zapay</a> and <a href="https://investor.corpay.com/news-releases/news-release-details/corpay-acquire-full-ap-corporate-payments-company">Paymerang</a> to bolster this segment. Overall, organic growth has averaged 8.1% over the past 9 years and management expects to grow by 10% over the next three years.



Today, CPAY stock doesn&rsquo;t reflect its fundamental performance. Earnings have grown from $13.21 in 2021 to 2024&rsquo;s guidance of $19, yet the stock is below 2021 highs. This is an opportunity to buy one of the top bargain stocks at 14 times forward earnings and benefit from its $800 million buyback.



On the date of publication, Charles Munyi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines.</a>




























<div>Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/3-bargain-bin-stocks-with-millionaire-maker-potential/">3 Bargain Bin Stocks with Millionaire-Maker Potential</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Bargain Bin Stocks with Millionaire-Maker Potential

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Baxter Announces Mission and Logo for Proposed Kidney Care Company Vantive

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Baxter Intl (BAX) Forecast

Baxter Intl (NYSE:BAX) Stock, Quote.Headers.trade-ideas