Morningstar Rating

Stock Research and Analysis

by Michael Waterhouse

Bulls Say

Baxter is typically a leading competitor, often taking the number-one or -two spot in many of the markets it competes in, such as dialysis equipment, parenteral nutrition, biosurgery, and anesthetic gases.
New product launches, refocusing capital into higher-margin product lines, and de-emphasizing unprofitable segments should enhance Baxter's profitability.
Emerging markets are a prime source of growth for many of Baxter's products, especially dialysis products and nutrition solutions. Read more 

Bears Say

Baxter's profitability appears to be below that of peers, which could make margin gains difficult over the coming years.
Although many of Baxter's products are essential for medical care and patient health, many of the company's products are commodities with little pricing power.
While Baxter's acquisition of Gambro strengthens the firm's position in the dialysis market, Gambro's historical growth has been flat. Baxter's goal of accelerating organic and Gambro-sourced growth over the next few years could prove lofty. Read more 


We assign Baxter a Standard stewardship rating. Robert Parkinson Jr. has been chairman and CEO since 2004. Before arriving at Baxter, he spent 25 years at Abbott Labs, serving for a time as president and COO. Before the Baxalta spin-off, Parkinson focused   Read more 


Baxter manufactures medical products across four major business segments. The renal segment (41% of sales) includes hemodialysis and peritoneal dialysis products. Integrated   Read more 

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