Baker Hughes (BKR) closed the last day of trading at $28.47, unchanged from the previous trading session. That change was narrower than the S&P 500’s 0.08% daily loss. Meanwhile, the Dow lost 0.15% and the Nasdaq, a technology-heavy index, lost 0.04%.
Prior to today’s session, shares of the oil services company had lost 21.09% in the past month. This was lower than the Oil & Energy sector’s loss of 19.96% and the S&P 500’s loss of 6.03% during this period.
Wall Street will be looking for positivity from Baker Hughes as its next earnings report date nears. That should be July 20, 2022. In this report, analysts expect Baker Hughes to post earnings of $0.22 per share. This would mark an annual growth of 120%. Meanwhile, Zacks’ consensus estimate for revenue calls for net sales of $5.39 billion, up 4.73% from the year-ago period.
For the full year, our Zacks consensus estimates call for earnings of $1.16 per share and revenue of $22.18 billion, which would represent swings of +84.13% and +8, 01%, respectively, compared to the previous year.
It’s also important to note recent changes to analyst estimates for Baker Hughes. These revisions generally reflect the latest short-term trading trends, which may change frequently. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. Over the past few months, the Zacks Consensus EPS estimate has fallen 1.03%. Baker Hughes currently has a Zacks rank of #3 (Hold).
Investors should also note Baker Hughes’ current valuation metrics, including its Forward P/E ratio of 24.65. This valuation marks a premium to its industry average Forward P/E of 19.8.
The Oil and Gas – Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry ranking of 70, which places it in the top 28% of all 250+ industries.
The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.