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. ...
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Baxter International: Shares Too Cheap, EPS Growth Ahead With A Possible Spinoff