Here’s Why Baxter International (BAX) Slid in Q2

Parnassus Investments, an investment management company, released the “Parnassus Value Equity Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Fund (Investor Shares) returned -3.81% (net of fees) underperforming the Russell 1000 Value Index’s -2.17% return. Stock selection in the Health Care sector drove most of the portfolio’s underperformance. The firm believes the Fund is well positioned for future returns with AI-related investments in Information Technology complemented by holdings that should benefit from improved performance across other sectors. If investor uncertainty increases, it anticipates finding more bargain opportunities. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Parnassus Value Equity Fund highlighted stocks like Baxter International Inc. (NYSE:BAX), in the second quarter 2024 investor letter. Baxter International Inc. (NYSE:BAX) develops and provides healthcare products. The one-month return of Baxter International Inc. (NYSE:BAX) was 0.47%, and its shares gained 2.13% of their value over the last 52 weeks. On September 25, 2024, Baxter International Inc. (NYSE:BAX) stock closed at $38.34 per share with a market capitalization of $19.56 billion.

Parnassus Value Equity Fund stated the following regarding Baxter International Inc. (NYSE:BAX) in its Q2 2024 investor letter:

“Baxter International Inc. (NYSE:BAX) saw its shares decline after reporting disappointing results for its Hill-Rom subsidiary amid weakness in the primary care market. If Baxter’s management follows through on its stated intention to sell or spin off its kidney care segment this year, the transformation should rekindle investor optimism.”

Patients connected to dialysis machines in a hospital ward, highlighting the company’s c and intravenous therapies.

Baxter International Inc. (NYSE:BAX)is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Baxter International Inc. (NYSE:BAX) at the end of the second quarter which was 46 in the previous quarter. In the second quarter, Baxter International Inc. (NYSE:BAX) reported $3.8 billion in global sales, up 3% on a reported basis and 4% on a constant currency basis. While we acknowledge the potential of Baxter International Inc. (NYSE:BAX)as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Baxter International Inc. (NYSE:BAX) and shared Broyhill Asset Management’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.