Baxter: This Near 3% Yielder Is Undervalued After 25% Pullback
By Bret Jensen:Baxter International is down some 25% since its highs this summer. Given its low valuation, steady growth prospects and solid dividend yield; it appears to have sold off too much especially if the market starts to shift into defensive sectors of the market as the contagion in Europe continues. Baxter (BAX) - "Baxter International Inc., through its subsidiaries, develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. The company operates in two segments, BioScience and Medical Products." (Business description from Yahoo Finance) 7 reasons why Baxter is undervalued at $48 a share:
- The stock yields 2.8%. It has also increased its dividend payout at an average 16% clip over the last half decade.
- Baxter is selling near the bottom third of its five year valuation range based on P/E, P/S and P/B.
- It appears to have
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