Top Stock to Buy #4 – Baxter International (BAX)
Global health care company Baxter International (NYSE:BAX) is a leader in the development and manufacturing of products that address immune disorders, infectious diseases, kidney disease, trauma, and other chronic and life-threatening medical conditions. Earnings and revenues have been growing at a steady pace, and the average consensus estimate for 2014 earnings is $5.22, up from an estimate of $4.66 in 2013, and earnings of $4.53 in 2012. The current dividend yield is 2.5%.
The stock is trading in a well-defined bull channel following a break from a consolidation pattern in November. It is under heavy accumulation supported by a MACD buy signal last week. A break above the resistance line of the current channel at about $71.50 could add another $5 to the stock, giving it a trading target of $76-$77. Baxter’s history of regular earnings and revenue increases makes it suitable for long-term investment portfolios.