12 Overlooked Large-Cap Stocks with Low Multiples

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6. Baxter International Inc. (NYSE:BAX)

Market Cap: $12.6 Billion

Fwd. P/E: 10.0

Number of Hedge Fund Holders: 31

Baxter International Inc. (NYSE:BAX) is one of the most undervalued and overlooked large-cap stocks. On August 4, a Barclays analyst lowered his price target on Baxter International Inc. (NYSE:BAX) to $36 from $41, while maintaining an Overweight rating. The cut followed a sharp 24% decline in the stock after Q2 results, driven by the pause of its Novum pump program and reduced 2025 outlook.

The analyst argued that the sell-off was “significantly overdone” and sees current levels as an attractive entry point. Despite mixed Q2 results, Baxter International Inc. (NYSE:BAX) still expects 2025 operational sales growth of 3%-4%, down from 4%-5%, with EPS guidance narrowed to $2.42-$2.52 from $2.47-$2.55.

The analyst believes that investor concerns about pump delays and execution risks are overly discounted in the stock price. This, according to him, creates an opportunity for value-oriented investors willing to look past near-term uncertainty.

Baxter International Inc. (NYSE:BAX) is a healthcare company offering products in infusion systems, renal therapies, and surgical equipment, serving hospitals and clinics worldwide.

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