Baker Hughes (BKR) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Baker Hughes (BKR) closed at $30.56, marking a +1.29% move from the previous day. This move outpaced the S&P 500's daily gain of 0.51%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.58%.
Prior to today's trading, shares of the oilfield services company had gained 2.65% over the past month. This has lagged the Oils-Energy sector's gain of 4.16% and the S&P 500's gain of 2.94% in that time.
The investment community will be paying close attention to the earnings performance of Baker Hughes in its upcoming release. The company's earnings per share (EPS) are projected to be $0.40, reflecting a 42.86% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.32 billion, indicating a 10.55% growth compared to the corresponding quarter of the prior year.
BKR's full-year Zacks Consensus Estimates are calling for earnings of $2.03 per share and revenue of $27.54 billion. These results would represent year-over-year changes of +26.88% and +7.96%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited 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 within the past month. As of now, Baker Hughes holds a Zacks Rank of #3 (Hold).
Looking at valuation, Baker Hughes is presently trading at a Forward P/E ratio of 14.85. Its industry sports an average Forward P/E of 14.02, so one might conclude that Baker Hughes is trading at a premium comparatively.
One should further note that BKR currently holds a PEG ratio of 0.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Field Services industry had an average PEG ratio of 0.89 as trading concluded yesterday.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 160, putting 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Baker Hughes Company (BKR) : Free Stock Analysis Report
