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Baker Hughes - AI Stock Analysis

Analysis generated April 5, 2025

Baker Hughes, a prominent player in the energy sector, primarily operates in the oilfield services and equipment industry. The company provides a wide range of drilling, evaluation, completions, and production services to the oil and gas sector. Over the years, Baker Hughes has positioned itself as a key partner for energy companies worldwide through its commitment to innovation, operational excellence, and sustainability.

Fundamental Analysis

Turning our attention to the fundamental performance of Baker Hughes, the company reported a revenue of $6.95 billion for the most recent quarter. Although this marks a 2.22% decrease from the previous quarter, it is essential to highlight the year-over-year growth of 3.92%. This suggests long-term improvement despite short-term hiccups.

Net income came in at $766 million, illustrating a robust 32.30% expansion compared to the last quarter and an impressive 47.88% year-over-year growth. The uptrend in net income is a strong indicator of improved operational efficiencies and bottom-line performance.

EBITDA for the last quarter stood at $996 million, up 10.79% quarter-over-quarter and 28.02% year-over-year. This steady growth in EBITDA emphasizes the company’s enhanced profitability and ability to generate cash.

The current Price-to-Earnings (P/E) ratio is 13.71, which is in a normal range, neither overly expensive nor undervalued. However, insider selling seen in the past few months could be a potential bearish signal, indicating that company insiders may believe the stock is fully valued or nearing a peak.

Technical Analysis

Today, Baker Hughes’ stock is priced at $35.41, reflecting a 16.33% decline from a month ago, which might be worrying in the short term. Nevertheless, the current price is up 5.61% from a year ago, suggesting a positive longer-term trend.

The Simple Moving Average (SMA10) currently stands at 41.82, down from a previous SMA10 of 42.68. This declining trend in SMA10 suggests a bearish momentum in the short term. Additionally, the Relative Strength Index (RSI) is at 20.3, indicating that the stock is potentially in oversold territory. An oversold RSI condition can often trigger a bullish reversal.

Alternative Data Analysis

From an alternative data perspective, Baker Hughes appears to maintain stable operational health. There are 930 open positions on major job boards, and this number has been stable, suggesting a steady workforce and company stability.

Employee sentiment remains neutral, indicating no extreme optimism or pessimism about the company’s future.

Customer acquisition data shows that Baker Hughes’ website attracts around 1M visitors monthly without any significant changes, implying steady interest and visibility. The company also boasts 72,000 followers on Twitter, with no notable changes in engagement over the last few months.

The AltIndex AI score for Baker Hughes, which evaluates the stock based on a combination of fundamental, technical, and alternative data, is 35. This score is a sell signal, indicating cautiousness in the near-term stock prospects.

Conclusion

In conclusion, while Baker Hughes displays promising fundamental health with growing revenue, net income, and EBITDA year over year, the recent short-term metrics and insider selling provide reasons for caution. The technical indicators, including a bearish SMA trend and RSI indicating an oversold condition, present mixed signals. Finally, alternative data suggests a stable company but does not indicate significant short-term catalyst.

Based on the comprehensive analysis, investors might consider a cautiously optimistic view of Baker Hughes. The fundamentals show strong long-term potential, but short-term volatility and bearish signals suggest a hold or conservative approach at this juncture.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.