Baxter International Inc – Top Medical Stocks 2021
Baxter International is a healthcare company with business segments in the renal segment, the acute therapies segment, the medication delivery segment, the nutrition segment, the pharmaceuticals segment, the advanced surgery segment, and the contract manufacturing segment. The company has a fairly diversified portfolio of products that treat kidney, immune, and a whole range of other medical conditions. While some healthcare stocks have faced a tough time due to supply chain issues and deferment of elective procedures, things are starting to look up now. Baxter has scale, pricing power, and an extensive product line to compete effectively and it may be one of the medical stocks for long term growth.
Baxter International’s Business Information
Baxter International has 7 business segments. Among them, renal care is the largest in terms of revenue contribution. The medication discovery segment is the second-largest while pharmaceuticals is the third-largest segment for the company. The three segments contribute about 75% of Baxter International’s total revenue. Baxter is known to have one of the most extensive sales networks that allow it to earn revenue in over 100 countries. Baxter’s products are also not very easy to manufacture and involve a high level of research and development. Therefore, the entry barrier for new entrants is reasonably high. Additionally, medical equipment is also subject to stringent regulatory requirements which can pose another barrier. Baxter International is among the top medical stocks 2021.
Medical Stocks For Long Term
Baxter International’s stock has had a quiet 2021. It is up only 1% year-to-date as of July 2021. However, on a 5-year basis, the stock is up 73% and its P/E ratio was a shade under 40 as of 6th July 2021. As of 6th July 2021, the price is very close to the 200-day moving average but below the 18-day and 50-day moving averages.