Baxter Stock Slips Despite Latest Launch to Boost Patient Monitoring

On Tuesday, Baxter International Inc. BAX launched its next-generation patient monitoring device, the Welch Allyn Connex 360 Vital Signs Monitor. The Connex 360 monitor has received the FDA’s 510(k) clearance and is now available for hospitals and health systems to order across the United States.

It is worth mentioning that Baxter expanded its presence in the patient monitoring space through its acquisition of Hill-Rom and the Welch Allyn portfolio. The Connex 360 is the latest addition to the company’s vital signs solutions.

The latest launch is expected to significantly boost Baxter’s Front Line Care unit of the broader Healthcare Systems & Technologies segment and strengthen its foothold in the connected patient monitoring space.

Trend in BAX Stock Following the News

Following the announcement, shares of the company lost nearly 2.5% till yesterday’s close.

Historically, the company has gained a top-line boost from its various product innovations and launches. Although the latest announcement is likely to be beneficial for BAX’s top-line growth in the future, the stock declined overall.

Baxter currently has a market capitalization of $11.92 billion. It has an earnings yield of 10.6%, better than the industry’s 0.2%. In the last reported quarter, BAX delivered a negative earnings surprise of 1.7%.

Significance of Baxter’s Product Launch

Per Baxter, the Connex 360 is expected to offer an advanced connectivity and security platform, customizable configurations based on a hospital’s clinical routines and upgrade capabilities for future functionality and enhancements. The device is equipped with automated clinical documentation to simplify the clinician workflow.

Baxter’s Connex 360 monitor will likely capture vital signs for adult, pediatric and neonate patients, including blood pressure, temperature, pulse rate, respiration rate and blood oxygen levels. This is expected to enable the care teams to obtain a full set of patient vitals in under a minute and automatically send them to the electronic medical record (EMR), reducing manual data entry errors and supporting informed care decisions. The secure data flow is powered by Baxter’s cloud-based DeviceBridge platform, which is expected to enable accurate data transfer from Connex 360 to hospital IT systems, including the EMR.

Management believes that Connex 360 will aid BAX in advancing patient monitoring by providing care teams with the required timely insights to enable them to optimize their workflow.

Industry Prospects in Favor of BAX

Per a report by Grand View Research, the global patient monitoring devices market was valued at $50.36 billion in 2024 and is anticipated to reach $118.21 billion by 2033 at a CAGR of approximately 10.2%. Factors like the increasing demand for monitoring devices that measure, record and display various biometric data and the growing need for continuous monitoring are likely to drive the market.

Given the market potential, the latest launch is expected to provide a significant boost to Baxter’s business.

Baxter’s Notable Development

In July, Baxter announced second-quarter 2025 results, wherein it witnessed strength in its Healthcare Systems & Technologies segment. The sales in the Front Line Care division improved on a sequential basis.

BAX’s Share Price Performance

Shares of the company have lost 40.2% in the past year compared with the industry’s 0.2% decline. The S&P 500 has gained 17.6% in the same time frame.

Baxter’s Zacks Rank & Stocks to Consider

Currently, BAX carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are Solventum Corporation SOLV, ResMed Inc. RMD and Masimo Corporation MASI.

Solventum, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Solventum’s shares have gained 2.4% against the industry’s 19.5% decline in the past year.

ResMed, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 13.8%. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.5%.

ResMed has rallied 11.8% against the industry’s 0.2% decline in the past year.

Masimo, carrying a Zacks Rank of 2 at present, has an estimated growth rate of 20.5% for 2025. MASI’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.8%.

Masimo’s shares have gained 26.4% against the industry’s 18.8% decline in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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