Baxter International (BAX) has drawn fresh attention after using the 2026 J.P. Morgan Healthcare Conference to unveil its Dynamo Series stretcher, a new addition to its smart beds and connected care portfolio.

That product launch arrives after a tough stretch for shareholders, with a 1 year total shareholder return of 37.75% decline and a 5 year total shareholder return of 71.26% decline, even though the 1 month share price return is 3.82%.

If this kind of medtech news has your attention, it could be a good moment to scan other opportunities across healthcare stocks and see what else fits your watchlist.

With Baxter posting a 1 year total shareholder return decline of 37.75%, a 5 year decline of 71.26%, and trading at a small intrinsic discount, investors may be asking whether this represents a reset opportunity or whether the market is already pricing in future growth.

Most Popular Narrative: 14.2% Undervalued

At a last close of $19.84 versus a narrative fair value of $23.13, Baxter International is framed as undervalued. That gap rests on detailed long range assumptions.

Ongoing portfolio optimization efforts, including divestitures, cost reductions, and a commitment to eliminate stranded costs by 2027, aim to streamline operations, improve efficiency, and drive net margin improvement, which should be reflected in future earnings growth.

Curious how a company that is currently unprofitable still lands on a higher fair value? Revenue trends, margin rebuild and future earnings power all sit at the core of this narrative, but the precise mix of those inputs is where the story really gets interesting.

Result: Fair Value of $23.13 (UNDERVALUED)

However, the narrative could be knocked off course if quality issues around Novum IQ pumps deepen, or if margin pressure from manufacturing and product mix persists.

Build Your Own Baxter International Narrative

If you are not fully on board with this view or prefer to test the numbers yourself, you can build a custom Baxter story in just a few minutes by starting with Do it your way.

A great starting point for your Baxter International research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Baxter has you thinking more broadly about your portfolio, do not stop here. Tap into pre screened ideas that might line up better with your goals.

• Spot potential value by scanning these 864 undervalued stocks based on cash flows that currently trade below their assessed cash flow based estimate of worth.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.