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

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In the latest trading session, Baker Hughes (BKR - Free Report) closed at $34.07, marking no change from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.66%.

Shares of the oilfield services company have appreciated by 0.59% over the course of the past month, outperforming the Oils-Energy sector's loss of 0.43% and lagging the S&P 500's gain of 5.16%.

The investment community will be paying close attention to the earnings performance of Baker Hughes in its upcoming release. The company is slated to reveal its earnings on January 23, 2024. The company's upcoming EPS is projected at $0.47, signifying a 23.68% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.92 billion, reflecting a 17.24% rise from the equivalent quarter last year.

BKR's full-year Zacks Consensus Estimates are calling for earnings of $1.57 per share and revenue of $25.59 billion. These results would represent year-over-year changes of +76.4% and +20.98%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Baker Hughes. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Baker Hughes presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Baker Hughes has a Forward P/E ratio of 21.75 right now. Its industry sports an average Forward P/E of 17.42, so one might conclude that Baker Hughes is trading at a premium comparatively.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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