Top Health-Care Stock to Buy

By Sam Collins,

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Baxter International Inc. (NYSE: BAX ) - This global medical products and services company is a leader in critical therapies for life-threatening conditions.

The company's profit margins are expected to improve from 2010′s 51.4%, and revenues are expected to rise by about 5%, according to S&P. But recent challenges to the health-care reform act, if successful, could have a strong positive impact on Baxter's earnings, which are currently estimated to be $4.30 in 2011, up from $3.98 in 2010.

S&P maintains a "four-star buy" on the stock with a 12-month target of $58. But that target could be achieved much sooner if the recent triple-top is penetrated and the stock moves into the open gap at $52 to $58.

Buy this high-quality health-care equipment maker on either a break from the top at $52 or a pullback to the 50-day moving average at $50.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: BAX

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