Baker Hughes earned a rating upgrade after two quarters of rising revenue growth. The Relative Strength Rating for Baker Hughes stock jumped from 78 to 82 Tuesday, topping a benchmark. The upgrade for one of the world's biggest oil field services companies comes after its stock shot up about 50% in the last nine months.
The upgraded 82 RS Rating puts Baker Hughes stock in the top 18% of stocks overall, regardless of industry, for price performance this past year. It's notable because market research shows that the best stocks tend to have an RS Rating above 80 as they launch their biggest runs.
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Baker Hughes Stock's Other Key Ratings Mixed
Among its other key ratings, Houston-based Baker Hughes has a strong 83 Composite Rating, out of 99, showing it tops 83% of stocks on a group of the top fundamental and technical metrics, according to MarketSmith. Its C Accumulation/Distribution Rating indicates that funds are pretty much neutral on its stock.
The weak link in its ratings chain is earnings. It has a weak 38 Earnings Per Share Rating after it recorded a 28 cents per share loss last quarter. However, the prior three quarters its EPS rose 10%, then 63% and 52%. See if it can return to strong earnings growth this quarter. The next quarterly results are expected on or around July 19.
Baker Hughes Looking For Fresh Base
Watchlist candidate Baker Hughes stock rose from a late September low 20.22 to 30.70 Tuesday afternoon, up fractionally for the day. It's considered extended and out of buy range after clearing a 27.66 buy point in a second-stage consolidation. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
Baker Hughes stock earns the No. 10 rank among its peers in the Oil & Gas-Machinery/Equipment industry group. Archrock and Chart Industries are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
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