Fight against the virus enhances their appeal

Article Excerpt

Investors are now turning their attention to stocks that should thrive as the world attempts to prevent a resurgence of COVID-19. Those investments include medical device suppliers Baxter and Becton Dickinson. Both firms are developing COVID-related products. Still, those efforts only add to their already-solid prospects. BAXTER INTERNATIONAL INC. $82 is a buy. The company (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 508.8 million; Market cap: $41.7 billion; Price-to-sales ratio: 3.6; Dividend yield: 1.2%; TSINetwork Rating: Average; makes a variety of medical devices, including intravenous pumps and kidney-dialysis equipment. The U.S. accounts for about 40% of its revenue. COVID-19 has spurred demand for its products as more people require hospitalization. Baxter has also received emergency approval from the U.S. Food and Drug Administration for a blood purification filter for COVID-19 patients that require intensive care. The strong demand, as well as the contribution from recent acquisitions, is why Baxter’s revenue in the first quarter of 2020 rose 6.2%, to…

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