Baker Hughes Inc. (BHI): Today's Featured Energy Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Baker Hughes ( BHI) pushed the Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day down 0.4%. By the end of trading, Baker Hughes rose 56 cents (1.3%) to $44.05 on light volume. Throughout the day, 2.6 million shares of Baker Hughes exchanged hands as compared to its average daily volume of 4.5 million shares. The stock ranged in a price between $43.20-$44.10 after having opened the day at $43.37 as compared to the previous trading day's close of $43.49. Other companies within the Energy industry that increased today were: Marathon Petroleum ( MPC), up 5.6%, Gastar Exploration ( GST), up 5.5%, Goodrich Petroleum ( GDP), up 4.4%, and Quicksilver Resources ( KWK), up 4.3%.
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Baker Hughes Incorporated supplies oilfield services, products, and technology services and systems to the oil and natural gas industry worldwide. Baker Hughes has a market cap of $19.33 billion and is part of the basic materials sector. The company has a P/E ratio of 10.5, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 9.6% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Baker Hughes a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Baker Hughes as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Renewable Energy Group ( REGI), down 21.6%, Energy Services of America Corporation ( ESA), down 9.2%, Lucas Energy ( LEI), down 8.9%, and ZaZa Energy ( ZAZA), down 7.8%, were all laggards within the energy industry with Tesoro Corporation ( TSO) being today's energy industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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