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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 $29.79, marking a -0.73% move from the previous day. This move lagged the S&P 500's daily gain of 0.93%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 1.71%.

Coming into today, shares of the oilfield services company had gained 8.5% in the past month. In that same time, the Oils-Energy sector gained 2.37%, while the S&P 500 gained 4.61%.

Baker Hughes will be looking to display strength as it nears its next earnings release, which is expected to be July 19, 2023. The company is expected to report EPS of $0.33, up 200% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.22 billion, up 23.31% from the year-ago period.

BKR's full-year Zacks Consensus Estimates are calling for earnings of $1.50 per share and revenue of $25.28 billion. These results would represent year-over-year changes of +68.54% and +19.48%, respectively.

It is also important to note the recent changes to analyst estimates for Baker Hughes. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Baker Hughes is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Baker Hughes is holding a Forward P/E ratio of 20.06. Its industry sports an average Forward P/E of 14.73, so we 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. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 14% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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