Today's Unusual Social Activity Stock: Baker Hughes (BHI)

Trade-Ideas LLC identified Baker Hughes (BHI) as an unusual social activity candidate
By TheStreet Wire ,

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 more that 20x the normal benchmarked social activity for this time of the day compared to its average of 3.74 mentions/day.
  • BHI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $162.8 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.

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More 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 1.6%. Currently there are 13 analysts that rate Baker Hughes a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for Baker Hughes has been 4.1 million shares per day over the past 30 days. Baker Hughes has a market cap of $19.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.82 and a short float of 1% with 1.21 days to cover. Shares are down 5.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Baker Hughes as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, BAKER HUGHES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for BAKER HUGHES INC is rather low; currently it is at 15.62%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to -$99.00 million or 138.67% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.25%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 64.44% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • BAKER HUGHES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BAKER HUGHES INC swung to a loss, reporting -$4.49 versus $3.92 in the prior year. This year, the market expects an improvement in earnings (-$1.86 versus -$4.49).

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