Is Baker Hughes Stock Still Worth Buying After Rising 20% Last Year?

Zacks01-08

Baker Hughes Company BKR, a leading energy technology firm, has demonstrated robust performance with a 20% rise in its share price in 2024. It has outpaced the broader oil energy sector, which gained ...

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It has outpaced the broader oil energy sector, which gained ...</p>\n\n<a href=\"https://finance.yahoo.com/news/baker-hughes-stock-still-worth-115800676.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Baker Hughes Stock Still Worth Buying After Rising 20% Last Year?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Baker Hughes Stock Still Worth Buying After Rising 20% Last Year?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-08 19:58 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/baker-hughes-stock-still-worth-115800676.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Baker Hughes Company BKR, a leading energy technology firm, has demonstrated robust performance with a 20% rise in its share price in 2024. It has outpaced the broader oil energy sector, which gained ...</p>\n\n<a href=\"https://finance.yahoo.com/news/baker-hughes-stock-still-worth-115800676.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://finance.yahoo.com/news/baker-hughes-stock-still-worth-115800676.html","article_id":"2501727826","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2501727826","pubTimestamp":1736337480,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Baker Hughes Company BKR, a leading energy technology firm, has demonstrated robust performance with a 20% rise in its share price in 2024. It has outpaced the broader oil energy sector, which gained 1.8% during the same period. Furthermore, BKR has surpassed its peers, including SLBSLB and Halliburton HAL, in the Oil and Gas Equipment and Services industry.Baker Hughes operates at the forefront of the energy technology landscape, providing advanced solutions for oilfield services, digital technology and energy transition. The company’s diversified offerings, spanning traditional oil and gas operations to renewable energy solutions, position it uniquely within the evolving energy landscape.Baker Hughes’ strategic pivot toward clean energy solutions positions it as a key player in the global energy transition. The company’s investment of $658 million in R&D in 2023 has driven innovation in emissions abatement, hydrogen infrastructure and carbon capture technologies. This commitment to s","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","LU2463526074.USD":"NORDEA 1 - GLOBAL CLIMATE ENGAGEMENT \"BP\" (USD) ACC","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU1153585028.USD":"BGF GLOBAL LONG-HORIZON EQUITY  \"A4\" (USD) INC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU0256331488.USD":"SCHRODER ISF GLOBAL ENERGY \"A\" ACC","LU1084165304.USD":"FIDELITY WORLD \"A\" (USD) ACC","BK4179":"石油天然气设备与服务","LU2023250843.SGD":"Allianz Thematica Cl AT Acc H2-SGD","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","LU1261432733.SGD":"Fidelity World A-ACC-SGD","IE00B7SZLL34.SGD":"Legg Mason ClearBridge - Value A Acc SGD-H","SG9999004303.SGD":"Nikko AM Shenton Global Opportunities SGD","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","BKR":"贝克休斯","LU0251142724.SGD":"Fidelity America A-SGD","LU1119994496.HKD":"FIDELITY WORLD \"A\" (HKD) ACC","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","HAL":"哈里伯顿","LU1489326972.SGD":"First Eagle Amundi International AHS-MD SGD-H","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","SLB":"斯伦贝谢","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","LU0154245756.USD":"BNP PARIBAS US MID CAP \"C\" (USD) ACC","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU0368265418.SGD":"Blackrock World Energy Fund A2 SGD-H","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0154245673.USD":"BNP PARIBAS US MID CAP \"C\" (USD) INC","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","LU0300736492.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) INC","SGXZ23171101.USD":"NIKKO AM SHENTON GLOBAL OPPORTUNITIES (USD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc","LU0985489474.SGD":"First Eagle Amundi International AHS-C SGD-H","LU0300736062.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) ACC","LU0251131958.USD":"FIDELITY AMERICA \"A\" (USD) ACC","LU0122376428.USD":"贝莱德世界能源基金A2","LU0878866978.SGD":"First Eagle Amundi International AHS-QD SGD-H","BK4585":"ETF&股票定投概念","LU0077335932.USD":"FIDELITY AMERICAN GROWTH \"A\" INC","LU0742534661.SGD":"Fidelity America A-SGD (hedged)","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","BK4566":"资本集团","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD"},"translate_title":"贝克休斯股票去年上涨20%后仍值得买入吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SLB":1,"BKR":1,"HAL":1},"content_text":"Baker Hughes Company BKR, a leading energy technology firm, has demonstrated robust performance with a 20% rise in its share price in 2024. It has outpaced the broader oil energy sector, which gained 1.8% during the same period. Furthermore, BKR has surpassed its peers, including SLB SLB and Halliburton HAL, in the Oil and Gas Equipment and Services industry.\nImage Source: Zacks Investment Research\nBaker Hughes operates at the forefront of the energy technology landscape, providing advanced solutions for oilfield services, digital technology and energy transition. The company’s diversified offerings, spanning traditional oil and gas operations to renewable energy solutions, position it uniquely within the evolving energy landscape.\nLet’s examine the factors driving BKR’s strong performance and assess whether this momentum will persist.\nFactors Favoring BKR Stock\nStrong Financial Performance and Shareholder Returns\nIn the third quarter of 2024, BKR posted $6.9 billion in revenues, marking a 4% year-over-year increase. Adjusted EBITDA grew to $1.2 billion, reflecting a 23% surge from the prior-year quarter’s level. The company’s free cash flow of $754 million enabled a robust shareholder return framework, including dividends and share buybacks totaling $361 million during the quarter. These figures highlight Baker Hughes’ financial stability and its ability to generate value for shareholders amid a volatile energy market.\nFind the latest EPS estimates and surprises on Zacks Earnings Calendar.\nRecord Operational Performance\nBaker Hughes achieved operational milestones, including securing large-scale contracts in both its Oilfield Services and Energy Technology segments. Key wins include multi-year agreements with Middle Eastern national oil companies and significant orders for integrated compressor line technology from global clients. The growing installed base of Gas Technology Equipment and associated Gas Technology Services (“GTS”) has driven structural growth, with GTS revenues projected to grow 20% through 2030.\nStrategic Investments and Cost Efficiency\nThe company’s focus on expanding its energy transition portfolio has been a critical growth driver. Investments in hydrogen, carbon capture, and digital solutions have diversified revenue streams while aligning with global sustainability goals. Additionally, Baker Hughes’ cost-management initiatives, such as supply-chain efficiencies and portfolio optimization, have contributed to its enhanced profitability and positioned the company to navigate industry headwinds effectively.\nLong-Term Vision and Sustainability\nBaker Hughes’ strategic pivot toward clean energy solutions positions it as a key player in the global energy transition. The company’s investment of $658 million in R&D in 2023 has driven innovation in emissions abatement, hydrogen infrastructure and carbon capture technologies. This commitment to sustainability is further reflected in its reduction of Scope 1 and 2 GHG emissions by 28.3% from the 2019 baseline.\nWhile Baker Hughes has strong long-term potential, prospective investors should carefully consider a few challenges and risks.\nRed Flags for Baker Hughes\nDependence on Market Cyclicality\nAs an oilfield services company, the company remains vulnerable to fluctuations in global oil prices and exploration budgets. While its energy transition initiatives provide diversification, a major portion of its revenues — approximately 60% in 2023 — is still tied to traditional oil and gas operations. A downturn in oil prices or reduced capital spending by upstream operators could affect BKR’s financial performance.\nValuation Concerns\nBKR’s current price-to-earnings (P/E) ratio of 15.96 exceeds the industry average of 12.25. This premium valuation suggests that much of the optimism around its energy transition efforts and operational success might already be priced in. Investors should consider whether the stock’s growth potential justifies its higher valuation or if a pullback could offer a better entry point.\nImage Source: Zacks Investment Research\nExecution Risks in Energy Transition Projects\nWhile Baker Hughes’ investments in hydrogen and carbon capture projects are promising, these initiatives face execution risks, including technological challenges, regulatory hurdles and competitive pressures. Delays or cost overruns in such projects could affect the company’s profitability and erode investor confidence.\nCapital-Intensive Business Model\nBaker Hughes’ operations require significant capital investments to maintain competitiveness, particularly in high-tech segments like digital solutions and energy transition projects. The company’s capital allocation includes $159 million in R&D investment in the third quarter of 2024 alone. While these investments drive growth, they also heighten financial risks, particularly during periods of economic or industry-specific downturns.\nFinal Verdict for BKR Stock\nBaker Hughes boasts strong financial performance, operational excellence and a forward-looking strategy that aligns with global energy transition trends. Its focus on high-value contracts, cost efficiency, and sustainability positions it as a resilient player in the energy sector. However, the company’s exposure to market cyclicality, higher valuation and capital-intensive operations may pose risks for investors.\nFor those seeking exposure to the energy transition while capitalizing on the continued relevance of traditional oil and gas, Baker Hughes presents a compelling case. However, given its premium valuation and the potential for near-term volatility, investors may consider waiting for a pullback or clearer financial signals before adding this Zacks Rank #3 (Hold) stock to their portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant 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\nSchlumberger Limited (SLB) : Free Stock Analysis Report\nHalliburton Company (HAL) : Free Stock Analysis Report\nBaker Hughes Company (BKR) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.2","shortVersion":"4.30.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2501727826"}