Advertisement
Canada markets close in 2 hours 7 minutes

  • S&P/TSX

    21,644.57
    -95.63 (-0.44%)
     

  • S&P 500

    5,047.36
    -14.46 (-0.29%)
     

  • DOW

    37,771.12
    +36.01 (+0.10%)
     

  • CAD/USD

    0.7233
    -0.0020 (-0.28%)
     

  • CRUDE OIL

    85.32
    -0.09 (-0.11%)
     

  • Bitcoin CAD

    86,300.34
    -1,692.14 (-1.92%)
     

  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

  • GOLD FUTURES

    2,405.30
    +22.30 (+0.94%)
     

  • RUSSELL 2000

    1,964.79
    -10.91 (-0.55%)
     

  • 10-Yr Bond

    4.6840
    +0.0560 (+1.21%)
     

  • NASDAQ

    15,852.78
    -32.23 (-0.20%)
     

  • VOLATILITY

    18.40
    -0.83 (-4.30%)
     

  • FTSE

    7,820.36
    -145.17 (-1.82%)
     

  • NIKKEI 225

    38,471.20
    -761.60 (-1.94%)
     

  • CAD/EUR

    0.6811
    -0.0013 (-0.19%)
     
MARKETS LIVE BLOG:

STOCKS TRADE MIXED AS COMPANY EARNINGS ROLL IN

Shares of Live Nation, parent company of Ticketmaster, fall on antitrust probe report

Baxter (BAX) Inks Partnership with Americares, Stock Down

Zacks Equity Research
Updated

Headquartered in Deerfield, IL, Baxter International Inc. BAX, a global medical technology company, announced a new oral health project in collaboration with Americares, a health-focused relief and development organization. Notably, share prices lost 4.1% to close at $44.76 following the news.

The project is formally known as The Americares Oral Health Project and is exclusively formulated to enhance the capacity of 30 Americares partner clinics in delivering better oral hygiene conditions, especially to the uninsured, underinsured and low-income patients. Notably, Baxter would fund the year-long project with a grant of nearly $75,000 to Americares.

Meanwhile, the current market trends of Baxter represent lucrative sentiments as it promises a solid one-year return of almost 18%, much better than S&P 500’s roughly 4.9% over the same time frame.

In the past six months, Baxter has outperformed the Zacks categorized sub industry trend with respect to price performance. Notably, the company represents a positive return of 3.71%, much better than Medical Product industry’s return of -4.47%.

ADVERTISEMENT

BAXTER INTL Price

 

BAXTER INTL Price | BAXTER INTL Quote

Additionally, a positive estimate revision trend for the stock for the current fiscal buoys optimism, as eight estimates moved upward in the last two months. The company’s current year estimate has risen by 19 cents to $1.91 over the past two months.

Coming back to the deal, the project includes a webinar series known as ''Train the Trainer'', created in partnership with the Institute for Healthcare Advancement. The project aims to promote oral health education and further introduce preventive measures in a primary care setting. Per management, the launch of the oral health initiative aims to improve and address issues related to dental care in the U.S.

Meanwhile, the project would consist of training and resources pertaining to oral health topics. Notably, all the training sessions will be available on SafetyNetCenter.org – Americares’ open source library.

Our Take

Baxter operates in the life-sustaining and critical care products category that is cushioned against sudden economic downturns. We believe the latest development will fortify Baxter’s position in the oral health care market, which is estimated to have a worth of about $34.8 billion globally (Statista).

We are also upbeat about the company’s third-quarter 2016 earnings results which steered past the Zacks Consensus Estimate on both counts.

Additionally, the stock promises a solid long-term expected growth of 12.31% and has an earnings yield of 4.09%, much better than the industry’s yield of 1.38% over the same time frame.

Zacks Rank & Other Stocks to Consider

Currently, Baxter sports a Zacks Rank #1 (Strong Buy).

Other favorably ranked stocks in the broader medical space include HMS Holdings Corp. HMSY, Medidata Solutions Inc. MDSO and IDEXX Laboratories, Inc. IDXX. Notably, HMS Holdings and Medidata Solutions carry a Zacks Rank #2 (Buy) while IDEXX Laboratories sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

HMS Holdings has a long-term expected growth rate of 14.26%. Notably, the company has a solid one-year return of roughly 42.5%.

Medidata Solutions has a strong one-year return of roughly 19.5%. The stock represents a long-term expected growth rate of 22.33%.

IDEXX Laboratories represents a solid one-year return of almost 68.2%. The company has a long-term expected growth rate of almost 14.96%.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
MEDIDATA SOLUTN (MDSO): Free Stock Analysis Report
 
HMS HLDGS CP (HMSY): Free Stock Analysis Report
 
IDEXX LABS INC (IDXX): Free Stock Analysis Report
 
BAXTER INTL (BAX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research