Baxter International Inc. (BAX)

BAX stock forecast: buy or sell

BAX stock outlook

  • Baxter International stock slightly changed 0.45% to close at $80.73 on the stock market on Friday, breaking a streak of 4 sessions in negative.
  • Baxter International presented its earnings report on July 30
  • Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products.
No ad for you

Please read:
The thoughts expressed in this article are personal and not recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the particular positions of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for educative motives only

BAX stock chart overview

Should I buy Baxter International stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is BAX stock a buy?

In the current situation of Baxter International there is not any eligible buy setup. This doesn't mean BAX will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

No ad for you

Should I sell Baxter International stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies let us to avoid rash decisions based on our personal moods or the buzz that surrounds the market. When selling, as well as buying, our setups are very simple to follow but are only applicable for selling stocks you already own, not for shorting Baxter International stock

A golden rule is that you must never mantain an operation that leads to losses greater than those expected by the time of the buy. The moment to sell shares should always be determined by the stop-loss (automatic or manual)

Is it time to sell Baxter International stock?

Currently, Baxter International stock doesn't match any of our preferred sell setups, so if you hold Baxter International stock and your operation is in profit probably is not time to sell now

No ad for you

Analysts' recommendations to buy or sell Baxter International stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 4 ratings were published for Baxter International. General sentiment is bullish, with 3 out of 4 publishing positive forecasts

No ad for you

Baxter International ratings

Brokerage firmRating
Jul 30th, 2020
Oppenheimer Strong buy
Jul 31st, 2020
Credit Suisse Group Strong buy
Jul 31st, 2020
Morgan Stanley
Jul 31st, 2020
Raymond James Buy

Technical analysis

SMAs overview

Moving averages are simple tools for investors to gauge direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Investors use support and resistance levels to spot price points on a chart that tend to act as barriers, preventing the price of an asset to move in certain direction. A support level is a level where the price tends to find support as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue falling until approaching another support level. On the contrary, a resistance level is where the price tends to find opposition as it moves up. In the same manner, this means that the price is more likely to "rebound" at this level, and if it finally ruptures this level, it will rise more easily until it hits the next resistance

The current resistances are:

  • R1: $81.16 (0.53% above)
  • R2: $81.35 (0.77% above)
  • R3: $81.94 (1.5% above)
  • The current support levels are:

  • S1: $80.37 (-0.45% below)
  • S2: $76.93 (-4.71% below)
  • S3: $76.55 (-5.18% below)
  • Bollinger bands

    This is an indicator that was developed in the 1980s by John Bollinger. Basically, the Bollinger Bands are bands that fluctuate around a centralmoving averagediffering in distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price broke down the lower band on Thursday, the price has bounced up by 2.61%. The price is trading very close to the lower Bollinger band, indicating some level of oversold in recent sessions. This is not a bullish indicator, as price can trade in these levels for many days and weeks

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price action to spot when the price of a share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI moves from 0 to 100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    The Relative Strength Indicator (RSI) has been between the overbought and oversold zones for several weeks, and therefore, without this indicator really helping us to make any decisions.

    No ad for you

    Earnings and financials

    Baxter International Inc. (BAX) posted adjusted EPS for the fiscal 2nd-quarter that slightly missed Market expectations. Quarterly EPS was $0.64 per share instead of $0.71. This quarterly report means an earnings surprise of -9.86%. Estimated turnover was $2.9 billion but Baxter International slightly lowered by 4.97%, posting $2.7 billion.

    Same quarter one year ago, reported EPS was $0.89, so recently reported EPS means a drop of -28.09%. Looking at sales, figures just moved compared to $2.8B same quarter last year.

    BAX will host the earnings call next October. Expected EPS for this quarter is $0.72. If you hold or you are planning to buy BAX shares, you must be on alert as earnings reporting day usually has a higher than usual volatility, and price can gap up or down with unsually low liquidity and not honouring your buy/stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

    No ad for you