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Baker Hughes (BKR) Gains As Market Dips: What You Should Know

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In the latest trading session, Baker Hughes (BKR - Free Report) closed at $29.67, marking a +0.3% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.

Heading into today, shares of the oilfield services company had gained 4.82% over the past month, outpacing the Oils-Energy sector's gain of 1.56% and the S&P 500's gain of 4.14% in that time.

Investors will be hoping for strength from Baker Hughes as it approaches its next earnings release. In that report, analysts expect Baker Hughes to post earnings of $0.33 per share. This would mark year-over-year growth of 200%. Meanwhile, our latest consensus estimate is calling for revenue of $6.22 billion, up 23.31% from the prior-year quarter.

BKR's full-year Zacks Consensus Estimates are calling for earnings of $1.52 per share and revenue of $25.28 billion. These results would represent year-over-year changes of +70.79% and +19.48%, respectively.

Any recent changes to analyst estimates for Baker Hughes should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Baker Hughes is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Baker Hughes's current valuation metrics, including its Forward P/E ratio of 19.41. For comparison, its industry has an average Forward P/E of 14.08, which means Baker Hughes is trading at a premium to the group.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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