Last Updated: 07 Sep 2024
Executive Summary
Baker Hughes Co. (BKR) is a leading global oil and gas field services company with a market capitalization of $34.14 billion. The company has a strong financial position with an EBITDA of $4.1 billion and a profit margin of 7.37%. BKR's stock is currently trading at $33.94, below its 52-week high of $38.81. Analysts are bullish on the company, with a consensus target price of $43.14.
Company Overview
Baker Hughes Co. provides products and services for oil drilling, formation evaluation, completion, production, and reservoir consulting. The company operates in over 120 countries and has a workforce of over 56,000 employees. BKR's customers include major oil and gas companies, independent producers, and national oil companies.
Fundamental Analysis
BKR's financial performance has been strong in recent quarters. The company's revenue grew by 13% year-over-year in the latest quarter, and its earnings per share grew by 45%. BKR's profitability metrics are also strong, with a gross profit margin of 16.4% and an operating margin of 11.7%.
The company's balance sheet is also healthy, with a debt-to-equity ratio of 0.53. BKR has a strong cash flow from operations, which it uses to invest in new products and services and to return capital to shareholders through dividends and share repurchases.
Technical Analysis
BKR's stock price has been trending higher in recent months. The stock broke out of a resistance level at $32.50 in late July and has since rallied to $33.94. The stock's 50-day moving average is currently at $35.21, and its 200-day moving average is at $32.89.
The stock's relative strength index (RSI) is currently at 56.38, which indicates that the stock is neither overbought nor oversold. The stock's moving average convergence divergence (MACD) indicator is also bullish, with the MACD line above the signal line and the histogram bars above the zero line.
Short Term Outlook
BKR's stock price is expected to continue to trend higher in the short term. The stock is trading above its key moving averages and its technical indicators are bullish. The stock's target price of $43.14 is a potential upside target for the stock in the coming months.
Long Term Outlook
BKR's long-term outlook is also positive. The company is a leader in the oil and gas field services industry, and it is well-positioned to benefit from the growing demand for oil and gas. BKR's strong financial position and its commitment to innovation should allow the company to continue to grow its revenue and earnings in the years to come.
Analyst Recommendations
Analysts are bullish on BKR's stock. The consensus target price of $43.14 is a potential upside target for the stock in the coming months. Five analysts have a strong buy rating on the stock, 17 have a buy rating, four have a hold rating, and none have a sell or strong sell rating.
