In a year marked by persistent headwinds for the healthcare sector, Baxter International Inc. (NYSE:{{7951|BABAX) stock has recorded a new 52-week low, dipping to $28.6. This latest price level reflects a significant retreat from more favorable valuations, encapsulating a 1-year change with a decline of -25.38%. According to InvestingPro analysis, the company currently trades at a high P/E multiple of 137.45x, though Fair Value calculations suggest the stock may be undervalued at current levels. Investors have been closely monitoring the company's performance, as the stock's downward trajectory signals caution amidst broader market volatility and sector-specific pressures. Despite these challenges, Baxter maintains its position as a prominent player in the Healthcare Equipment & Supplies industry, with a market capitalization of $14.84 billion and an impressive 54-year track record of consistent dividend payments, currently yielding 2.33%. Baxter's journey to this 52-week low underscores the challenges faced by the firm in a competitive and rapidly evolving industry landscape. For deeper insights into Baxter's valuation and prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Baxter International Inc. has seen significant developments. The company announced board changes with Mr. Peter M. Wilver resigning from the Board of Directors effective December 31, 2024, and Mr. Jeffrey A. Craig stepping up as the new chairperson of the Audit Committee. Concurrently, Baxter reported a 4% increase in sales year-over-year in Q3 2024, reaching $3.85 billion, exceeding their guidance with an adjusted earnings per share (EPS) of $0.80. This growth was primarily driven by a 7% increase in the Medical (TASE:PMCN) Products & Therapies segment, attributed to the demand for the Novum IQ platform.
Despite operational challenges due to Hurricane Helene, Baxter anticipates a resumed production of IV solutions by late November. The company also disclosed the pending sale of their Kidney Care business to Carlyle, expected to close in late 2024 or early 2025. Baxter projects full-year 2024 sales growth at 1% to 2%, with an adjusted EPS of $2.90 to $2.94. Looking forward, Baxter aims for 4% to 5% top-line growth and an adjusted operating margin of 16.5% in 2025 post-separation from the Kidney Care business. These are recent developments for the company.
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