Q2 STOCKS TO BUY

Baker Hughes Declares Quarterly Dividend as Shares Continue Climb

BKR stock price has more than doubled since its October low

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Baker Hughes Company (NYSE:BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Baker Hughes is also one of the world's largest oil field services companies. The company provides the oil and gas industry with products and services for oil drilling, formation evaluation, completion, production, and reservoir consulting. They currently have operations in over 120 countries. This afternoon, BKR is trading down 2.7% at $25.09.

On May 14 Baker Hughes declared a cash dividend of $0.18 per share, payable on June 4 to BKR shareholders of record on May 25. BKR also has a $0.72 forward dividend, which is equivalent to a dividend yield of 2.74%.

BKR stock price has increased about 70% over the past 12 months and Baker Hughes stock price is up 109% from its 52-week low of $12.13 hit back in October of 2020. Additionally, shares of Baker Hughes stock have increased 22.8% year-to-date and BKR stock price recently hit a three-year high of $26.57 on Tuesday, May 18.

As far as performance goes in the earnings confessional, Baker Hughes has outperformed earnings expectations just once in its last four quarterly earnings reports. Furthermore, it is apparent that Baker Hughes is still attempting to recover from some major losses incurred over the last year. In 2020, BKR's revenues fell to $20.7 billion. However, on a more positive note, Baker Hughes had maintained decent revenue growth rate prior to the COVID-19 pandemic, growing its top line revenue by 38% between 2017 and 2019.

Overall, Baker Hughes stock remains overvalued for the numbers the company is expected to post in the short-term. Although BKR did make a return to profitability in the first quarter of 2021, Baker Hughes stock still has a sky-high forward price-earnings ratio of 38.76.

 
 

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