Baker Hughes (BKR) Stock Sinks As Market Gains: Here's Why
In the latest market close, Baker Hughes (BKR) reached $29.20, with a -0.48% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 2.11%. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 2.96%.
The the stock of oilfield services company has fallen by 2.33% in the past month, lagging the Oils-Energy sector's gain of 6.4% and the S&P 500's gain of 3.08%.
The investment community will be closely monitoring the performance of Baker Hughes in its forthcoming earnings report. On that day, Baker Hughes is projected to report earnings of $0.43 per share, which would represent year-over-year growth of 53.57%. Alongside, our most recent consensus estimate is anticipating revenue of $6.32 billion, indicating a 10.55% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.13 per share and a revenue of $27.54 billion, indicating changes of +33.13% and +7.96%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Baker Hughes. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 4.33% higher. Baker Hughes presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Baker Hughes is presently being traded at a Forward P/E ratio of 13.8. This expresses a discount compared to the average Forward P/E of 13.9 of its industry.
Investors should also note that BKR has a PEG ratio of 0.59 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Field Services industry had an average PEG ratio of 0.88 as trading concluded yesterday.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 175, finds itself in the bottom 31% echelons 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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Baker Hughes Company (BKR) : Free Stock Analysis Report
