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Bear of the Day: Baxter (BAX)

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In the world of equities, not all stocks shine brightly in the heavens. Some inevitably find themselves in the shadows, struggling against the tides of market sentiment. Such is the case with today’s Bear of the Day, a stock currently enshrouded in bearish clouds, casting doubt on its future trajectory.

I’m talking about Zacks Rank #5 (Strong Sell) Baxter ((BAX - Free Report) ).Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company operates through four segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals, and Kidney Care. 

Baxter's recent performance has been less than stellar. But what factors contribute to this bleak outlook for Baxter? A deep dive into Baxter's financials reveals some troubling signs. Earnings have been under pressure, with the company failing to meet expectations in recent quarters. The company's EPS has shown a declining trend, further exacerbating investor concerns. The lower-than-expected earnings reflect inefficiencies and challenges in the company's operations, raising questions about its ability to generate sustainable growth.

Over the last 60 days, three analysts have cut their estimates for the current year while next year has seen four analysts cut their numbers. That has sent our Zacks Consensus Estimates for the current year down from $2.96 to $1.83 with next year’s number off from $3.13 to $2.47. The good news is that that lowered consensus still represents growth of 35% year-over-year.

The Medical – Products industry ranks in the Top 35% of our Zacks Industry Rank. There are other names within the industry which are in the good graces of our Zacks Rank. These include Zacks Rank #1 (Strong Buy) stocks Brainsway ((BWAY - Free Report) ) and OraSure Technologies ((OSUR - Free Report) ).


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