Is Baxter International Stock Underperforming the S&P 500?

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Is Baxter International Stock Underperforming the S&P 500?

With a market cap of $10.6 billion, Baxter International Inc. (BAX) is a global healthcare company that develops and delivers a broad portfolio of medical products, therapies, healthcare technologies, and pharmaceutical solutions. The company serves hospitals, clinics, dialysis centers, nursing homes, ambulatory surgery centers, and home-care patients through its three business segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals. 

Companies worth more than $10 billion are generally labeled as “large-cap” stocks and Baxter International fits this criterion perfectly. It operates across multiple international markets, including North America, Europe, Asia, Latin America, the Middle East, Africa, Australia, and New Zealand.

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BAX stock has decreased 36.3% from its 52-week high of $31.75. Shares of the company have increased 14.9% over the past three months, outperforming the broader S&P 500 Index’s ($SPX) 11.7% gain over the same time frame. 

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The stock is up 5.9% on a YTD basis, lagging behind SPX’s 9.6% rise. In the longer term, shares of Baxter International have fallen 32.2% over the past 52 weeks, compared to the 25.4% return of the SPX over the same time frame.

Despite few fluctuations, the stock has been trading above its 50-day moving average since May.

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Baxter International’s shares rose over 4% on Apr. 30 after the company reported Q1 2026 revenue of $2.7 billion, up ~3% year-over-year, which exceeded analyst expectations. The strong performance was driven by its international business, where sales increased ~12% year-over-year to $1.3 billion, helping offset a ~4% decline in U.S. sales to $1.4 billion. Investors were also encouraged by adjusted EPS of $0.36, which beat consensus estimates, and by the company’s decision to reaffirm its full-year guidance of $1.85 - $2.05 adjusted EPS.

In comparison, rival, Intuitive Surgical, Inc. (ISRG) has lagged behind BAX stock on a YTD basis, with ISRG shares falling 26.9%. However, ISRG stock has declined 19.2% over the past 52 weeks, a less pronounced decline than BAX stock . 

As BAX stock has underperformed over the past year, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from 14 analysts' coverage, and the mean price target of $20.36 is a marginal premium to current levels.


On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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