XLV - Baxter International: Shares Too Cheap EPS Growth Ahead With A Possible Spinoff
2024-05-08 06:21:25 ET
Summary
- The Health Care sector has underperformed the S&P 500 in the past year, but that leaves some undervalued names away from the GLP-1 firms.
- Baxter's Q1 results beat expectations, but shares fell 8.5%, leaving the Health Care Equipment industry player near 12x earnings.
- EPS growth appears strong in the quarters and years ahead, though Baxter's technical chart is troubling.
- I highlight key price levels to watch on this weak-momentum stock.
The Health Care sector continues to look anemic compared to healthy S&P 500 returns over the past year. The Health Care Select Sector SPDR ETF (XLV) is up 8%, which is not bad on its own, but that’s more than 16 percentage points of underperformance. It comes as glamour GLP-1 companies like Eli Lilly (LLY) and Novo Nordisk (NVO) have garnered the most bullish attention. Other areas, particularly firms in the Health Care Equipment industry, have produced negative alpha. ...
Baxter International: Shares Too Cheap, EPS Growth Ahead With A Possible Spinoff