Baxter International Inc (NYSE:BAX) just released earnings yesterday morning and BAX stock proceeded to drop nearly 3% in morning trading.

But the numbers were good. Earnings were better than expected, revenue was in line with expectations. And some of the issues it had in Q4 had been resolved.

What was the problem? It was twofold.

First, BAX stock has nearly doubled the performance of its sector colleagues over the past year. That means the solid numbers weren’t good enough to keep this rally fueled and some consolidation was in order.

Second, BAX also took a one-time hit to its profit by charging $354 million in losses due to the tax change. The thing is, neither of these issues is too troubling for Baxter — the latter is happening to virtually every large company in the market.

What it means for investors is, as BAX stock loses some of its steam, it’s a great chance to get in, because the stock has plenty of profits left to deliver.

Baxter has two key divisions — the Hospital division that provides products that are used in the delivery of fluids and drugs. That includes IVs and other sterile solutions as well as pre-mixed drugs, inhalation anesthetics, infusion pumps and IV nutrition products.

On the other hand, its Renal division focuses on patients that have kidney disease or kidney failure. It manufactures equipment used in the various types of dialysis services and products.

These lines of products are not only fundamental to the healthcare industry, but as the baby boomers age, there is a growing demand for these types of products. Long-term growth is baked into BAX stock.

For short- and intermediate-term growth, BAX continues to expand its product offerings. For example, it recently completed the acquisition of Claris Injectables, which will grow Baxter’s portfolio of generic injectable pharmaceuticals.

It has also just received FDA approval for Bivalirudin (an anti-coagulant) in a BAX proprietary solution that comes in a premixed solution that can be frozen.

Also bear in mind that Baxter only derives about 45% of its annual revenue from the U.S. market. The global market makes up more than 55% of its sales. As the global economic recovery gains traction, that is a good sign for Baxter’s prospects.

Bottom Line on BAX Stock

And U.S. healthcare legislation shouldn’t have much of an effect on the products that BAX sells since its markets aren’t tied to drug prices or discretionary procedures.

Having been in this niche since 1931, BAX has build a global reputation that is not only durable, but expanding.

One last point, Baxter noted in its earnings report that hurricane damage in Puerto Rico meant a $70 million revenue loss for Q4. The company has a manufacturing facility on the island.

Starting in 2018, Puerto Rico will be online again and the tax issue will be behind it. Any selloff now is like buying BAX stock on sale.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.