Houston, Texas-based Baker Hughes Company (BKR) provides oilfield products, services, and digital solutions. Valued at $34.7 billion by market cap, BKR is one of the world's largest oilfield service providers offering drilling, well intervention, decommissioning, surface pressure control, onshore composite pipe, reservoir technical, and integrated well services.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and BKR perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the oil & gas equipment & services industry. BKR’s diversified portfolio, spanning oilfield services, equipment, and industrial power generation, drives its market resilience. Technological expertise in artificial lift, specialty chemicals, and completions underpins its industry leadership. Strategic exposure to liquid natural gas and industrial markets enhances the company’s competitive position.
Despite its notable strength, BKR has slipped 11.2% from its 52-week high of $39.05, achieved on Jul. 31. Over the past three months, BKR stock has gained 7.9%, outperforming the SPDR S&P Oil & Gas Equipment & Services ETF’s (XES) 5.3% dip during the same time frame.
In the longer term, shares of BKR rose 1.4% on a YTD basis but dipped 4.9% over the past 52 weeks, outperforming XES’ YTD decline of 2.9% and 16.8% losses over the last year.
However, BKR has been trading below its 50-day moving average since the end of August. It has been trading above its 200-day moving average since mid-June to confirm the bullish trend.
Despite challenges in the industry, BKR has shown resilience this year by focusing on digital solutions for CCUS operations with CarbonEdge, an innovative tool for regulatory reporting and risk management. The company's gas technology and LNG portfolios are strong, meeting global demand for natural gas. The company is also investing in AI technology through companies like Augury to enhance its industrial machinery diagnostics.
On Jul. 25, BKR reported its Q2 results, and its shares closed up more than 5% in the following trading session. Its adjusted EPS of $0.57 exceeded Wall Street expectations of $0.49. The company’s revenue was $7.1 billion, surpassing Wall Street forecasts of $6.8 billion.
BKR’s rival, Weatherford International plc (WFRD), has had a rough ride. WFRD's shares plummeted 6.5% in 2024 alone and 6.1% over the past 52 weeks.
Wall Street analysts are highly bullish on BKR’s prospects. The stock has a consensus “Strong Buy” rating from the 20 analysts covering it, and the mean price target of $43.58 suggests a potential upside of 25.7% from current price levels.
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