Baxter International Inc.
) - 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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