Here’s What Hit Baxter (BAX) in Q4

Pzena Investment Management recently released its fourth-quarter 2025 commentary for “Pzena Focused Value Strategy.” A copy of the letter can be downloaded here. The fourth quarter was defined by strong AI momentum and continued market dominance by mega-cap stocks. In this environment, Pzena Focused Value Strategy underperformed the Russell 1000® Value Index, delivering a net return of 2.5% vs. 3.8% for the Index. Given the limited leadership in the market, the firm still observes appealing valuation differences and believes the current environment is favorable for long-term value investors. In addition, you can check the Fund’s top five holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Pzena Focused Value Strategy highlighted Baxter International Inc. (NYSE:BAX) as one of its leading performance detractors. Baxter International Inc. (NYSE:BAX) is a healthcare company that offers a portfolio of healthcare products. The one-month return for Baxter International Inc. (NYSE:BAX) was -3.31%, and its shares lost 36.76% over the last 52 weeks. On February 2, 2026, Baxter International Inc. (NYSE:BAX) stock closed at $19.87 per share, with a market capitalization of $10.214 billion

Pzena Focused Value Strategy stated the following regarding Baxter International Inc. (NYSE:BAX) in its fourth quarter 2025 investor letter:

“Basic materials, health care, and technology were the largest detracting sectors during the quarter. Global medical products company Baxter International Inc. (NYSE:BAX) was weak following disappointing third quarter results and a dividend cut. Delayed normalization of IV fluid volumes following Hurricane Helene continued to pressure revenue, while the voluntary Novum pump ship-hold announced last quarter is now expected to extend into 2026, adding further near-term pressure.”

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

Baxter International Inc. (NYSE:BAX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 38 hedge fund portfolios held Baxter International Inc. (NYSE:BAX) at the end of the third quarter, up from 31 in the previous quarter. While we acknowledge the risk and potential of Baxter International Inc. (NYSE:BAX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Baxter International Inc. (NYSE:BAX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Baxter International Inc. (NYSE:BAX) and shared Artisan Mid Cap Value Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.