Baxter International Inc. (BAX), Halozyme Therapeutics, Inc. (HALO): This Healthcare Company Is Poised for Growth

In late July, Biogen Idec Inc. (NASDAQ:BIIB) reported a better-than-expected Q2 with a non-GAAP diluted EPS of $2.30, beating analysts’ estimates of $1.93. For 2013, revenue growth is expected to be approximately 22%-23%. Biogen has a strong start for Tecfidera in the U.S. and continues to generate strong sales for its other major products. Along with the positive development of its pipeline, Biogen continues to enjoy a wide economic moat and more solid revenue growth is expected.

Bottom line

Despite the mixed earnings report, the recent acquisition of Gambro and the solid pipeline give Baxter International Inc. (NYSE:BAX) a bright outlook. Baxter is reasonably valued with a forward P/E of 13, which is below the S&P 500’s average of 15.4. Baxter remains a solid long-term holding with stable free cash flow and solid ROE.

Nick Chiu has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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