5 Best Healthcare Stocks Under $50

2. Baxter International Inc. (NYSE:BAX)

Number of Hedge Fund Holders: 55

Share Price as of July 21: $48.85

Baxter International Inc. (NYSE:BAX) was seen in the 13F holdings of 55 funds in the first quarter, with a total stake value of $2.1 billion.

Rick Wise at Stifel holds a Buy rating and a $56 price target on Baxter International Inc. (NYSE:BAX) shares as of July 12.

Baxter International Inc. (NYSE:BAX) is a healthcare equipment company. It offers peritoneal dialysis and hemodialysis services, among more.

Here’s what Oakmark Funds said about Baxter International Inc. (NYSE:BAX) in its second-quarter 2023 investor letter:

“Baxter International Inc. (NYSE:BAX) is a provider of medical devices and health care supplies used in patient care. The company’s competitive advantages include leading scale, a large installed base and long-term customer relationships. Demand for Baxter’s products tends to be stable and predictable. We had invested in Baxter a few years ago when Joe Almeida joined the company as CEO, and we believe that he and his management team are focused on growing per share value. Recently, we got another chance to buy shares after the price fell significantly due to margin pressure from inflation, semiconductor shortages and ripple effects related to Covid-19. We see these issues as short term in nature and think that management will restore higher margins in the years ahead. As a result, we believe the stock is cheap at less than 10x our estimate of normalized earnings.”