Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
In a robust display of market confidence, Baker Hughes (NASDAQ:BKR) stock has soared to a 52-week high, reaching a price level of $45.17. According to InvestingPro data, the company boasts a perfect Piotroski Score of 9, indicating exceptional financial strength. With a market capitalization of $44.4 billion and currently trading near its Fair Value, Baker Hughes demonstrates solid fundamentals. This peak comes amidst a broader energy sector rally, reflecting investors' growing optimism in the industry's prospects. Over the past year, Baker Hughes has witnessed a remarkable turnaround, with its stock value climbing by 43.05%. The company's impressive track record includes maintaining dividend payments for 38 consecutive years, with a current yield of 1.87%. This significant one-year change underscores the company's resilience and adaptability in a dynamic economic landscape, as it continues to navigate the challenges and opportunities within the energy sector. Discover 12 more exclusive insights about Baker Hughes on InvestingPro, including detailed financial analysis and expert recommendations.
In other recent news, Baker Hughes has reported record EBITDA in its third quarter 2024 earnings call, marking a 20% year-on-year EBITDA growth for the third consecutive quarter, and EBITDA margins reaching 17.5%, the highest since 2017. Despite a slight revenue miss of just over $200 million due to project delays, the company expects recovery in Q4 and Q1. Additionally, Baker Hughes has significantly expanded its operations in Namibia with a new liquid mud plant at Walvis Bay Port, currently the largest of its kind in the country. The company has also secured significant contracts with Brazilian state-run oil company Petrobras to supply flexible pipe systems for Brazil's pre-salt oilfields.
RBC Capital Markets updated its outlook on shares of Baker Hughes, raising the price target to $49.00 from the previous $43.00 while maintaining its Outperform rating. The new price target reflects an increased valuation multiple, now set at 10.0x up from 9.0x, applied to the firm's 2025 EBITDA estimate. The adjustment in valuation is attributed to the company's clearer path to long-term growth, especially in the Gas Technology sector.
These are recent developments in Baker Hughes' performance and growth.
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