8 Most Undervalued Healthcare Stocks to Buy According to Analysts

4. Baxter International Inc. (NYSE:BAX)

Price Target Upside: 38.56%

Baxter International Inc. (NYSE:BAX), founded in 1931 and headquartered in Deerfield, Illinois, is a leading healthcare company that specializes in medical products and technologies for chronic and acute conditions. The company offers a diverse range of products, including intravenous solutions, infusion pumps, anesthetics, and digital health platforms. The corporation’s business model spans three segments: Medical Products and Therapies, Healthcare Systems and Technologies, and Pharmaceuticals. Baxter International Inc. (NYSE:BAX) also enhances its portfolio and global reach through strategic acquisitions, such as its purchase of Hillrom.

The business’s Q4 2024 financial report which was released on February 20, 2025, highlighted solid sales growth and strategic developments. Its worldwide sales from continuing operations reached $2.75 billion, which is a 1% increase on a reported basis, exceeding prior guidance. U.S. sales remained flat at $1.51 billion, while international sales rose 1% as reported and 3% at constant currency, totaling $1.24 billion.

Baxter International Inc. (NYSE:BAX)’s full-year sales for 2024 reached $10.64 billion, marking a 3% increase, also surpassing guidance. The revenue boost was driven by strong performances in the company’s Medical Products & Therapies and Pharmaceuticals segments, including notable sales of Novum IQ infusion pumps and specialty injectables. However, the U.S. GAAP diluted EPS showed a loss of $0.95, which was impacted by goodwill impairment and business optimization costs, though adjusted EPS from continuing operations of $0.58 exceeded expectations.

Additionally, Baxter International Inc. (NYSE:BAX) completed the sale of its Kidney Care business to Carlyle for $3.4 billion, marking a strategic divestiture. The company also demonstrated resilience and successfully recovered its North Cove manufacturing site after Hurricane Helene, ensuring continuity in supply, which is a key factor in why it remains one of the most undervalued stocks with strong growth potential.