BAX

Baxter International (BAX) reported Q3 adjusted EPS of 58 cents, beating estimates by 13.7%, with revenues up 5% to $2.98 billion. The company raised its 2026 sales growth outlook to 4-5% and adjusted EPS guidance to $2.05-$2.15, driven by strong performance in Medical Products & Therapies and Healthcare Systems & Technologies segments. However, adjusted operating margins contracted 40 basis points due to cost pressures.

Baxter International (BAX) is expected to report Q3 2026 results on October 29 with revenues projected to grow 2.4% to $2.90B, but EPS is forecast to decline 26.1% to 51 cents. While Advanced Surgery products and IV solutions should drive growth, the company faces headwinds from infusion pump issues, elevated manufacturing costs, and $40M in tariff-related expenses. The Zacks model does not predict an earnings beat.

Zacks highlights two Medical-Products stocks with strong value characteristics: Baxter International (BAX) and Zimmer Biomet (ZBH), both holding Zacks Rank #2 (Buy) ratings and Value grade A. Both stocks trade at attractive valuations compared to industry averages across multiple metrics including P/E, PEG, P/B, and P/S ratios, suggesting they are currently undervalued with strong earnings outlooks.

Baxter International (BAX) has significantly outperformed the medical sector year-to-date, returning 26.7% compared to the sector's -0.2% average loss. The stock holds a Zacks Rank #2 (Buy) with improving analyst sentiment, as consensus earnings estimates have increased 6.5% in the past quarter. BAX is outperforming its Medical-Products industry peers, which have declined 22.4% on average.