Baxter International (BAX) Traded Higher Despite Tariff Disruptions

Broyhill Asset Management, an investment advisor, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Broyhill Partners appreciated 2.8% net of all fees and expenses in the first quarter, surpassing a -1.2% return for the MSCI All Country World Index. Volatility was the dominant theme in the first quarter, particularly among a few US technology companies that have come to influence the performance of passive indices. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Broyhill Asset Management highlighted stocks such as Baxter International Inc. (NYSE:BAX). Baxter International Inc. (NYSE:BAX) is a Medical Instruments & Supplies company that develops and provides healthcare products. The one-month return of Baxter International Inc. (NYSE:BAX) was -0.59%, and its shares lost 10.44% of their value over the past 52 weeks. On May 29, 2025, Baxter International Inc. (NYSE:BAX) closed at $30.53 per share, with a market capitalization of $15.75 billion.

Broyhill Asset Management stated the following regarding Baxter International Inc. (NYSE:BAX) in its Q1 2025 investor letter:

“Shares of Baxter International Inc. (NYSE:BAX) gained 18% in the first quarter, as the company delivered strong results, with numbers moving higher despite tariff disruptions. We thought Baxter took a big step toward rebuilding confidence, with improved execution and visibility into the balance of the year. Management expects operational sales growth of 4% to 5% this year, which appears reasonable to us. The bigger question, which will require a few more quarters of execution, is if 4% or 5% is sustainable long-term. At 12x earnings, or just over half of the market’s multiple, the consensus is taking the under. We are happy to take the other side of this one.”

Is Baxter International Inc. (BAX) the Most Undervalued Healthcare Stock to Buy According to Analysts?

Patients connected to dialysis machines in a hospital ward, highlighting the company’s dialysis and intravenous therapies.

Baxter International Inc. (NYSE:BAX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Baxter International Inc. (NYSE:BAX) at the end of the first quarter, which was 36 in the previous quarter. Baxter International Inc.’s (NYSE:BAX) global sales from continuing operations for the first quarter of 2025 reached $2.3 billion, reflecting a 5% increase on both a reported and operational basis. While we acknowledge the potential of Baxter International Inc. (NYSE:BAX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Baxter International Inc. (NYSE:BAX) and shared the list of most undervalued healthcare stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.