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

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Baker Hughes (BKR) closed the most recent trading day at $29.97, moving +0.27% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.26%.

Coming into today, shares of the oilfield services company had lost 14.53% in the past month. In that same time, the Oils-Energy sector lost 4.86%, while the S&P 500 lost 8.32%.

Wall Street will be looking for positivity from Baker Hughes as it approaches its next earnings report date. This is expected to be July 20, 2022. The company is expected to report EPS of $0.23, up 130% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.39 billion, up 4.87% from the prior-year quarter.

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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Baker Hughes is currently a Zacks Rank #3 (Hold).

Digging into valuation, Baker Hughes currently has a Forward P/E ratio of 25.61. Its industry sports an average Forward P/E of 21.93, 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 group has a Zacks Industry Rank of 86, putting it in the top 34% 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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