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

In the latest trading session, Baker Hughes (BKR) closed at $28.47, marking a -0.66% move from the previous day. This change lagged the S&P 500's 3.06% gain on the day. Meanwhile, the Dow gained 2.68%, and the Nasdaq, a tech-heavy index, added 0.05%.

Prior to today's trading, shares of the oilfield services company had lost 22.75% over the past month. This has lagged the Oils-Energy sector's loss of 12.66% and the S&P 500's loss of 4.31% in that time.

Baker Hughes will be looking to display strength as it nears its next earnings release, which is expected to be July 20, 2022. On that day, Baker Hughes is projected to report earnings of $0.23 per share, which would represent year-over-year growth of 130%. Meanwhile, our latest consensus estimate is calling for revenue of $5.39 billion, up 4.87% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.17 per share and revenue of $22.18 billion. These totals would mark changes of +85.71% and +8.01%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Baker Hughes. These revisions help to show the ever-changing nature of 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Baker Hughes currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Baker Hughes has a Forward P/E ratio of 24.56 right now. Its industry sports an average Forward P/E of 19.3, 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 84, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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