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

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In the latest trading session, Baker Hughes (BKR - Free Report) closed at $36.74, marking a -0.57% move from the previous day. This move lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 1.14%.

Prior to today's trading, shares of the oilfield services company had gained 4.14% over the past month. This has lagged the Oils-Energy sector's gain of 4.25% and outpaced the S&P 500's loss of 0.73% in that time.

Baker Hughes will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2023. The company is expected to report EPS of $0.39, up 50% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.51 billion, up 21.24% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.53 per share and revenue of $25.47 billion, which would represent changes of +71.91% and +20.39%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Baker Hughes. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% 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 24.18. For comparison, its industry has an average Forward P/E of 19.45, 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 56, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow BKR in the coming trading sessions, be sure to utilize Zacks.com.


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