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Baker Hughes (BKR) Gains But Lags Market: What You Should Know

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In the latest trading session, Baker Hughes (BKR) closed at $37.18, marking a +0.22% move from the previous day. This change lagged the S&P 500's 2.47% gain on the day. At the same time, the Dow added 1.76%, and the tech-heavy Nasdaq gained 0.71%.

Coming into today, shares of the oilfield services company had gained 16.05% in the past month. In that same time, the Oils-Energy sector gained 14.17%, while the S&P 500 lost 2.59%.

Baker Hughes will be looking to display strength as it nears its next earnings release. On that day, Baker Hughes is projected to report earnings of $0.23 per share, which would represent year-over-year growth of 130%. Our most recent consensus estimate is calling for quarterly revenue of $5.39 billion, up 4.87% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.17 per share and revenue of $22.18 billion, which would represent changes of +85.71% and +8.01%, 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. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.1% lower. Baker Hughes is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Baker Hughes has a Forward P/E ratio of 31.79 right now. This represents a premium compared to its industry's average Forward P/E of 26.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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