In the latest trading session, Baker Hughes (BKR) closed at $27.89, marking a -0.39% move from the previous day. This move lagged the S&P 500's daily gain of 1.31%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Coming into today, shares of the oilfield services company had lost 2.91% in the past month. In that same time, the Oils-Energy sector lost 4.63%, while the S&P 500 gained 2.12%.
Baker Hughes will be looking to display strength as it nears its next earnings release. On that day, Baker Hughes is projected to report earnings of $0.33 per share, which would represent year-over-year growth of 200%. Meanwhile, our latest consensus estimate is calling for revenue of $6.22 billion, up 23.31% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.52 per share and revenue of $25.28 billion, which would represent changes of +70.79% and +19.48%, respectively, from the prior year.
Any recent changes to analyst estimates for Baker Hughes should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Baker Hughes is currently a Zacks Rank #3 (Hold).
Investors should also note Baker Hughes's current valuation metrics, including its Forward P/E ratio of 18.37. Its industry sports an average Forward P/E of 13.24, 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 216, putting it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report