Baker Hughes Inc. (BHI): Today's Featured Energy 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 Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Baker Hughes fell $0.91 (-1.9%) to $46.50 on average volume. Throughout the day, 4,786,068 shares of Baker Hughes exchanged hands as compared to its average daily volume of 3,578,900 shares. The stock ranged in price between $45.86-$46.97 after having opened the day at $46.24 as compared to the previous trading day's close of $47.41. Other companies within the Energy industry that declined today were: Houston American Energy Corporation ( HUSA), down 8.3%, CKX Lands ( CKX), down 8.0%, New Concept Energy ( GBR), down 6.7% and Martin Midstream Partners L.P ( MMLP), down 6.1%.
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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 $21.1 billion and is part of the basic materials sector. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are up 16.7% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Baker Hughes a buy, 1 analyst rates it a sell, and 16 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 largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. 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, Syntroleum Corporation ( SYNM), down 17.7%, PostRock Energy ( PSTR), down 14.5%, Cubic Energy ( QBC), down 14.2% and Endeavour International ( END), down 8.7% , were all gainers within the energy industry with Murphy Oil Corporation ( MUR) being today's featured energy industry leader.

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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