Zacks highlights two Medical-Products stocks with strong value characteristics: Baxter International (BAX) and Zimmer Biomet (ZBH), both holding Zacks Rank #2 (Buy) ratings and Value grade A. Both stocks trade at attractive valuations compared to industry averages across multiple metrics including P/E, PEG, P/B, and P/S ratios, suggesting they are currently undervalued with strong earnings outlooks.

Baxter International (BAX) has significantly outperformed the medical sector year-to-date, returning 26.7% compared to the sector's -0.2% average loss. The stock holds a Zacks Rank #2 (Buy) with improving analyst sentiment, as consensus earnings estimates have increased 6.5% in the past quarter. BAX is outperforming its Medical-Products industry peers, which have declined 22.4% on average.

The article explains the Zacks Earnings ESP (Expected Surprise Prediction) tool, which identifies stocks likely to beat quarterly earnings estimates by comparing the most recent analyst estimates against consensus estimates. When combined with a Zacks Rank of #3 or better, stocks with positive ESP have historically produced 70% positive surprises and 28.3% average annual returns. The article highlights Eli Lilly and Baxter International as examples of stocks with positive ESP ahead of their October 29, 2026 earnings releases.

The global veterinary ophthalmology equipment market is expected to grow from USD 0.57 billion in 2026 to USD 0.83 billion by 2031, at a 7.7% CAGR. Growth is driven by rising pet ownership, increased prevalence of animal eye diseases, and adoption of advanced diagnostic and surgical technologies. Treatment applications and surgical equipment segments are leading growth, with Asia Pacific emerging as the fastest-growing region.

The global intravenous immunoglobulin (IVIG) market is projected to grow from USD 14.98 billion in 2025 to USD 30.83 billion by 2035, at a CAGR of 7.49%. Growth is driven by expanding neurological indications, increased plasma collection capacity, and rising demand for immunoglobulin-based treatments. However, plasma supply dependency and a 100% U.S. tariff on imported IVIG products implemented in October 2025 pose significant constraints. North America leads the market, while Asia-Pacific shows the fastest growth.

The global drug reconstitution systems market is expected to grow at a 7.0% CAGR from $5.9 billion in 2026 to $10.8 billion by 2035, driven by expanding biologic and biosimilar pipelines, increasing demand for safer drug delivery systems, and the shift toward home healthcare and self-administered therapies. Cartridges lead the market at 50% revenue share, while prefilled syringes are expected to grow faster. Asia-Pacific is projected to achieve the fastest regional growth.

Baxter International's stock surged 19% following strong second-quarter earnings that beat analyst expectations. The company reported $2.96 billion in sales (5% YoY growth) and raised full-year guidance for both revenue growth (3-4%) and adjusted EPS ($1.95-$2.15), citing strong performance across both product categories and geographic regions.

The global human fibrinogen concentrate market, valued at USD 0.95 billion in 2025, is projected to grow at a 11.3% CAGR to reach USD 2.78 billion by 2035. Growth is driven by increasing bleeding disorders, surgical procedures, and demand for effective hemostatic therapies. Lyophilized forms dominate the market, with hospitals being the primary end-users. Asia Pacific is expected to experience the highest growth rate.

Becton Dickinson (BDX) trades at a 13x forward P/E multiple, representing a significant discount to medtech peers despite strong fundamentals including 60% U.S. infusion pump market share, 90%+ recurring revenue, and record 25% adjusted operating margins. The post-spin-off transition year narrative masks an emerging pure-play MedTech company with billion-dollar growth platforms in GLP-1 drug delivery and connected care, supported by $4 billion in fresh capital deployment and ongoing margin expansion targeting 26%+ territory.

The global robotic pharmacy prescription market is experiencing significant growth, expanding from USD 214.16 million in 2025 to USD 237.65 million in 2026, with a projected CAGR of 9.18% through 2032, reaching USD 396.21 million. The market is driven by automation adoption for medication safety and efficiency, workforce transformation toward clinical roles, and bundled solution procurement strategies across hospitals, clinics, and long-term care facilities.

The Iran-Israel conflict and potential Strait of Hormuz disruption are creating supply chain pressures on medical supplies through petrochemical derivatives. Key inputs like naphtha and methanol used in pharmaceutical packaging and drug synthesis are experiencing price increases. While hospitals haven't yet felt the impact, analysts expect cost pressures on IV bags, tubing, and other critical consumables to surface within 2-4 weeks as the disruption ripples through supply chains.

Baxter International faces a significant supply shortage of ifosfamide cancer drugs across the European Union due to a technical disruption at a third-party manufacturing facility. The company, the primary EU supplier, has implemented quota-based distribution and advised healthcare providers to prioritize existing patients. Supply constraints are expected to persist until Q1 2027. The shortage announcement coincided with Baxter's disappointing 2026 guidance, with adjusted EPS forecasted at $1.85-$2.05 versus consensus of $2.25.