Their acquisitions should fuel more gains

Article Excerpt

Baxter and Agilent are seeing improved sales and earnings as hospitals and research labs start to order new equipment now that the COVID-19 pandemic is easing. Both firms will also benefit from their recent acquisitions. BAXTER INTERNATIONAL INC. $74 is a buy. The company (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 499.9 million; Market cap: $37.0 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.5%; TSINetwork Rating: Average; www.baxter.com) makes a wide variety of medical devices, including intravenous pumps and kidney-dialysis equipment. In the quarter ended June 30, 2021, revenue rose 14.0%, to $3.10 billion from $2.72 billion a year earlier. That’s largely due to improving demand for its products as hospitals resume elective procedures with easing of the COVID-19 pandemic. Baxter is also supplying packaging and other services to pharmaceutical firms making COVID-19 vaccines. Earnings jumped 24.3% in the latest quarter, to $409 million from $329 million. Due to fewer shares outstanding, earnings per share gained…