Baker Hughes Company (BKR) Soars to 52-Week High, Time to Cash Out?

Company Performance - Baker Hughes (BKR) shares have increased by 10.2% over the past month, reaching a new 52-week high of $38.67 [1] - Year-to-date, the stock has gained 11.9%, outperforming the Zacks Oils-Energy sector's 5.7% and the Zacks Oil and Gas - Field Services industry's 3.3% [1] Earnings and Revenue Expectations - Baker Hughes has consistently exceeded earnings estimates, reporting an EPS of $0.57 against a consensus estimate of $0.49 in its last earnings report on July 25, 2024 [2] - For the current fiscal year, the company is projected to achieve earnings of $2.19 per share on revenues of $27.82 billion, reflecting a 36.88% increase in EPS and a 9.06% increase in revenues [3] - The next fiscal year is expected to see earnings of $2.62 per share on $29.15 billion in revenues, indicating a year-over-year change of 19.84% in EPS and 4.8% in revenues [3] Valuation Metrics - Baker Hughes has a Value Score of B, a Growth Score of B, and a Momentum Score of A, resulting in a combined VGM Score of A [6] - The stock trades at 17.5X current fiscal year EPS estimates, below the peer industry average of 19.7X, and at 14.1X trailing cash flow compared to the peer group's average of 7.6X [7] - The PEG ratio stands at 0.62, indicating that while the stock is not in the top echelon from a value perspective, it still presents a reasonable valuation [7] Zacks Rank - Baker Hughes holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - The recommendation suggests that investors should consider stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, positioning Baker Hughes as a potential investment opportunity [9] Industry Comparison - The Oil and Gas - Field Services industry ranks in the bottom 86% of all industries, yet Baker Hughes and TechnipFMC plc (FTI) show promising fundamentals and potential tailwinds [12] - TechnipFMC plc has also demonstrated strong performance, with a Zacks Rank of 2 (Buy) and expected earnings of $1.21 per share on revenues of $9 billion for the current fiscal year [10]