Is Baker Hughes Company (BKR) the best oil inheritance stock to invest according to analysts?
We recently published a list 12 Best Oil Invaluation Shares to Invest according to analysts. In this article we will look at where Baker Hughes Company (Nasdaq: BKR) stands against other best oil inheritance shares to invest according to analysts.
The United States of America are the Largest oil -producing country in the world With the current production that achieves record levels, it is therefore not as a surprise that it is also up to the Countries with the largest refining capacities. The US had 132 oil refineries with a total capacity of 18.4 million barrels per day (BPD) at the beginning of 2024, an increase of 2% compared to the beginning of 2023.
Also read: 11 best natural gas supplies to buy now
2024 was a difficult year for the global refining sector, because players in the industry had a decrease in profitability for multi-year lows in the midst of soft consumer and industrial demand (especially in China), slowing down economic growth, increasing the Energy transition and the expansion of global refining capacity. The falling fuel margins in the Q4 2024 led to disappointing win results for many oil refineries, because a stream of new output competed with stagnating demand. This has led to different oil gors have closed the activities and offering their refineries for sale, but that is not as smooth as expected.
Things also don't seem to get better, which, according to the recent market front views of the International Energy Agency, the growth of the global demand for oil is expected to slow down in the coming years as the energy transitions will improve, making prices a downward pressure on. The US Energy Information Administration stated last month that Brent expected raw oil prices to fall by 8% to an average of $ 74 per barrel in 2025, then fall further to $ 66 per barrel in 2026, which reduces the margins for refineries.
Moreover, despite his repeated calls to increase oil production in the country, President Donald Trump's rates about the import from Mexico and Canada could make things worse for the refining sector. Many refineries in the midwest depend on the Canadian crude oil and the coming rate of 10% will force them to pay more for their raw material, or the production of sloping stripe, so that an industry is further squeezed. The president wants to make America self -sufficient and independent when it comes to energy, but no matter how much oil the pumps of the United States are, refineries are designed to process the dark, denser, cheaper crude oil that is difficult to find inland. However, Trump's plans to return support for electric vehicles and charging stations can delay their sales and reinforce the gas question, which offers the industry some respite.
The rapid energy transition is also an important cause of care for the refining sector, because governments push drivers into electric vehicles to strive to strive for climate goals. So the only way ahead is that the industry adapts and evolves. Various future -oriented refineries are now stimulating their resilience by upgrading their facilities to produce higher but low -carbon products such as petrochemicals and renewable fuels, although it requires considerable capital investments.
In recent months, the energy sector has witnessed considerable fluctuations, with more than 6% in November before he dropped around 10% in December. However, the broader energy sector ended last year with a return of only 5.72%, which is considerably lagging behind the 25% profit by the wider market. Nevertheless, the performance of the sector in the past 3-year and 5 years of periods remains strong.
To collect data for this article, we have investigated all companies in the oil refining sector that are mentioned on Nasdaq and NYSE and then compiled a list of shares with the highest upward potential according to Wall Street analysts, from 18 February 2024.
Why are we interested in the shares that stack hedge funds? The reason is simple: our research has shown that we can surpass the market by imitating the best share choices of the best hedge funds. The strategy of our quarterly newsletter selects 14 CAP and Large-CAP shares every quarter and has returned 373.4% since May 2014 and has reported its benchmark with 218 percentage points (See more details here).
Is Baker Hughes Company (BKR) the best oil inheritance stock to invest according to analysts?
A drilling installation on a remote oil field, his tower silhouette against a soup relationship.
Stock upward potential: 13.84%
Baker Hughes Company (Nasdaq: BKR) is an energy technology company that offers solutions for energy and industrial customers worldwide. The company is also involved in the oil refinage business through an integrated series of high-performance equipment, chemicals, real-time data technology and services.
Baker Hughes Company (Nasdaq: BKR) showed a strong performance in Q4 2024, because the adapted profit per share remained on an impressive growth trajectory, which increases 37% compared to Q4 of 2023 and an increase of 47% for the entire year. The turnover of the company also increased by 7.7% to $ 7.364 billion, so that the estimate of the consensus was defeated by more than $ 293 million. In addition, BKR 2024 ended with a total orders of $ 28.2 billion, including $ 13 billion in Iet orders that marked the second highest order for the segment.
Baker Hughes Company (Nasdaq: BKR) maintains a strong balance and generated a strong free cash flow of $ 894 million during Q4 2024, which resulted in a record annual free cash flow of $ 2.3 billion. The company remains committed to giving back 60% to 80% of the free cash flow to shareholders and last year $ 1.3 billion in dividends and share purchases, in the amount of approximately 60% of its cash flow. BKR increased its quarterly dividend last month by 10% to $ 0.23 per share, which marked the fourth consecutive year that it has increased its dividend, by 28% since the third quarter of 2022.
Shares of Baker Hughes Company (Nasdaq: BKR) have risen by more than 61% in the past year and belong to the 12 hot oil shares to buy according to hedge funds.
Generally bkr is in 6th place On our list of best oil refinery shares to invest according to analysts. Although we recognize the potential for BKR to grow, our conviction is that some AI shares have a greater promise for supplying a higher return within a shorter time frame. If you are looking for an AI share that is promising than BKR, but who acts in less than 5 times, view our report on the Cheapest AI stock.
Read next: 20 best AI shares to buy now And Full list of 59 AI companies of less than $ 2 billion in market capitalization
Publication: none. This article was originally published on Insider monkey.
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