Baker Hughes Inc. (BHI): Today's Featured Basic Materials Laggard

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 Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Baker Hughes fell $1.09 (-2.6%) to $41.09 on average volume. Throughout the day, 5.2 million shares of Baker Hughes exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $40.80-$41.56 after having opened the day at $41.45 as compared to the previous trading day's close of $42.18. Other companies within the Basic Materials sector that declined today were: Cereplast ( CERP), down 22.5%, Geokinetics ( GOK), down 17.2%, Gasco Energy ( GSX), down 10.5%, and Kimber Resources ( KBX), down 10%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $18.87 billion and is part of the energy industry. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7. Shares are down 11.8% year to date as of the close of trading on Thursday. Currently there are 11 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 hold. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

On the positive front, Andatee China Marine Fuel Services Corporat ( AMCF), up 25%, China Gerui Advanced Materials Group ( CHOP), up 19.9%, Torch Energy Royalty ( TRU), up 14.8%, and ZaZa Energy ( ZAZA), up 13%, were all gainers within the basic materials sector with Vale ( VALE) being today's featured basic materials sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.
null

If you liked this article you might like

Oil Prices Tank Ahead of Market-Moving OPEC Meeting

Oil Prices Tank Ahead of Market-Moving OPEC Meeting

Sears Falls as Former Director Dumps Stake; AT&T Debt Concerns Bubble -- ICYMI

Sears Falls as Former Director Dumps Stake; AT&T Debt Concerns Bubble -- ICYMI

AT&T's Fight With Justice Department Could Cost Company More Than Legal Fees

AT&T's Fight With Justice Department Could Cost Company More Than Legal Fees

Fighting Justice Dept. Could Cost AT&T More Than Legal Fees

Fighting Justice Dept. Could Cost AT&T More Than Legal Fees

Trump's Antitrust Team Sends Mixed Message on M&A

Trump's Antitrust Team Sends Mixed Message on M&A