In the latest trading session, Baker Hughes (BKR) closed at $30.56, marking a +1.29% move from the previous day. This move topped the S&P 500’s daily gain of 0.51%. Elsewhere, the Dow saw growth of 0.2%, while the tech-heavy Nasdaq appreciated by 0.58%.
Prior to today’s trading, shares of the oil services company had gained 2.65% over the past month. This trailed the gain of the Oils-Energy sector of 4.16% and the gain of S&P 500 of 2.94% at that time.
The investment community will be paying close attention to Baker Hughes’ earnings performance in its next release. The company’s earnings per share (EPS) is expected to be $0.40, reflecting a 42.86% increase from the same quarter last year. In the meantime, our current consensus estimate predicts that the revenue will be $6.32 billion, indicating a growth of 10.55% compared to the corresponding quarter of the previous year.
BKR’s full-year Zacks Consensus Estimates call for earnings of $2.03 per share and revenue of $27.54 billion. These results would represent year-on-year changes of + 26.88% and + 7.96%, respectively.
In addition, it would be beneficial for investors to check for any recent changes in analyst projections for Baker Hughes. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive rating reviews as a good sign for the company’s business outlook.
Empirical research indicates that these revisions in valuations have a direct correlation with short-term stock price performance. To take advantage of this, we established the Zacks Rank, an exclusive model that takes these rating changes into account and delivers a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, out-of-control track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.95% lower in the past month. Currently, Baker Hughes holds a Zacks Rank of number 3 (Hold).
Looking at valuation, Baker Hughes currently trades with a Forward P/E ratio of 14.85. Its industry has an average Forward P/E of 14.02, so one could conclude that Baker Hughes is trading at a premium in comparison.
It should be further noted that BKR currently holds a PEG ratio of 0.64. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth. The Oil & Gas – Field Services industry had an average PEG ratio of 0.89, as trading ended yesterday.
The Oil and Gas – Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 160, placing it in the bottom 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to trust Zacks.com to look at all of these stock impacts, and more, in the following trading sessions.
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Baker Hughes Company (BKR): Free Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.