Today's Unusual Social Activity Stock: Baker Hughes (BHI)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Baker Hughes (BHI) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Baker Hughes as such a stock due to the following factors:
- BHI has 13x the normal benchmarked social activity for this time of the day compared to its average of 2.92 mentions/day.
- BHI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $218.0 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.EXCLUSIVE OFFER: Get the inside scoop on opportunities in BHI with the Ticky from Trade-Ideas. See the FREE profile for BHI NOW at Trade-IdeasMore details on BHI: Baker Hughes Incorporated supplies oilfield services, products, technology, and systems to the oil and natural gas industry worldwide. The stock currently has a dividend yield of 1%. BHI has a PE ratio of 25.0. Currently there are 15 analysts that rate Baker Hughes a buy, no analysts rate it a sell, and 11 rate it a hold.The average volume for Baker Hughes has been 4.6 million shares per day over the past 30 days. Baker Hughes has a market cap of $28.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.72 and a short float of 2% with 2.62 days to cover. Shares are up 18.9% year-to-date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Baker Hughes as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.Highlights from the ratings report include:
- BHI's revenue growth has slightly outpaced the industry average of 8.2%. Since the same quarter one year prior, revenues rose by 10.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- BHI's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.43, which illustrates the ability to avoid short-term cash problems.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 47.40% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- BAKER HUGHES INC has improved earnings per share by 14.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BAKER HUGHES INC reported lower earnings of $2.47 versus $2.98 in the prior year. This year, the market expects an improvement in earnings ($4.04 versus $2.47).
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed that of the Energy Equipment & Services industry, but is on par with that of the S&P 500. The net income increased by 15.9% when compared to the same quarter one year prior, going from $214.00 million to $248.00 million.
- You can view the full Baker Hughes Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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