Baxter International Inc. (BAX): Buy This Healthcare Outperformer

Baxter International Inc. (NYSE:BAX) generates more than nearly two thirds of its revenues from international sales which hedges its operational risks. For the recent quarter, the company reported a 5% increase in its overall sales (currency adjusted) while its EPS rose by 8%. Furthermore, its annual cash flows rose to record levels of $3.1 billion while its quarterly cash flows stood at $945 million, up by 10% compared to last year’s quarter. Apart from sales growth, its EPS growth was driven by 52.4% gross margins which rose by 30 bps on a quarterly basis, and 60 bps on an annual basis. That’s nothing short of impressive.

A quick conclusion

In my opinion, Baxter International appears to be a value play, especially after its Gambro acquisition. The company has been reporting impressive financials and I believe it would only accelerate from here. However, investors looking for a stable income growth portfolio should take a closer look at Becton, Dickinson & Co. (NYSE:BDX).

The article Buy This Healthcare Outperformer originally appeared on Fool.com and is written by Piyush Arora.

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