Is Baker Hughes Stock Outperforming the Nasdaq?

Houston-based Baker Hughes Company (BKR) develops and deploys advanced technologies to serve companies looking for efficient, reliable and cleaner energy solutions. With a market cap of $43.4 billion, Baker Hughes operates as one of the world's largest oilfield service providers. It operates through the Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET) segments.

Companies worth $10 billion or more are generally described as “large-cap stocks,” Baker Hughes fits the bill perfectly. Given the company’s dominance and influence in the oil & gas equipment & services industry, its valuation above this mark is unsurprising.

Baker Hughes touched its 10-year high of $49.40 on Feb. 6 and is currently trading 11.5% below that peak. BKR stock has jumped 9.1% over the past three months, outperforming the Nasdaq Composite’s ($NASX) 9.7% decline during the same time frame.

Over the longer term, Baker’s performance looks much more impressive. BKR stock has soared 26.1% over the past six months and 34.9% over the past 52 weeks, outperforming NASX’s 39 bps dip over the past six months and 8.7% gains over the past year.

To confirm the bullish trend, BKR stock remained consistently above its 200-day moving average since late June 2024 and mostly above its 50-day moving average since late September with some notable fluctuations.

Baker Hughes’ stock prices rose 3.5% in the trading session after the release of its better-than-expected Q4 results on Jan. 30. Driven by strong execution, sharpened commercial focus and solid productivity gains, the company delivered record revenues, profits and cash flows during the quarter. The company reported a 6.6% year-over-year growth in revenues to $7.4 billion, which surpassed the consensus estimates by a notable margin. Meanwhile, its adjusted EBITDA soared 20.1% year-over-year to $1.3 billion and its adjusted EPS of $0.70 surpassed the consensus estimates by 11.1%. Furthermore, its cash flow from operations increased 27.6% year-over-year to $1.2 billion.

Meanwhile, Baker Hughes significantly outperformed its peer Schlumberger Limited’s (SLB) 70 bps dip over the past six months and 23% decline over the past year.

Among the 23 analysts covering the BKR stock, the consensus rating is a “Strong Buy.” Its mean price target of $52.96 suggests a 21.1% upside potential from current price levels.