By Peet Serfontein & Motheo Tlhagale
Baker Hughes is a multinational energy technology company that operates in the oil and gas industry. The company offers a wide range of services, including reservoir evaluation, drilling services, formation evaluation, well construction, artificial lift systems, and digital solutions for oilfield operations. It also provides equipment and technology for refining, liquefied natural gas (LNG), and petrochemical processes in the downstream sector.
The company is headquartered in Houston, Texas, and has a global footprint that spans over 120 countries.
Technically, the price is showing a constructive pattern as it continues to merge within the boundaries of a rising wedge, marked by prolonged support and resistance (see the black converging trendlines as well as the insert). This converging price structure indicates a period of consolidation within an overall uptrend, where the stock is respecting higher lows and encountering gradually higher resistance levels.
The stock is in the accumulation phase of the Wyckoff Price Cycle - typically representing a period where informed investors or institutions quietly build positions following a downtrend or correction.
Additionally, the stock is approaching its 200-day simple moving average (SMA), signalling a bullish price trend.
Upside price momentum according to the Moving Average Convergence Divergence (MACD) indicator as well as the recent sideways trajectory of the On-balance volume (OBV) indicator, provides further support to our bullish view.
| Share Information | |
|---|---|
| Share Code | BKR |
| Industry | Energy |
| Market Capital (USD) | 39.74 billion |
| One Year Total Return | 22.75% |
| Return Year-to-Date | -1.12% |
| Current Price (USD) | 40.11 |
| 52 Week High (USD) | 49.40 |
| 52 Week Low (USD) | 32.25 |
| Financial Year End | December |
| The share price is down slightly year-to-date. With a beta of 0.89 we expect lower volatility compared to the market. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (USD) | 2.35 | 2.36 | 2.67 | 2.94 |
| Growth (%) | 0.47 | 12.92 | 10.20 | |
| Dividend Per Share (USD) | 0.84 | 0.92 | 0.96 | 1.01 |
| Growth (%) | 9.29 | 4.79 | 5.09 | |
| Forward PE (times) | 16.99 | 15.05 | 13.65 | |
| Forward Dividend Yield (%) | 2.29 | 2.40 | 2.52 | |
| Growth expectations are decent over the medium term, with demand being bolstered by positive secular trends. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view
| Share Name and Position | SW - Take profit (Close the position) |
CMG - Buy (Continue to hold) |
ETN - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 39.56 | 54.65 | 334.86 |
| Current Price | 47.12 | 55.45 | 356.98 |
| Movement | +19.1% | +1.5% | +6.6% |
| Comment | We closed the position early to lock in gains. | The early formation of Wave 5 remains of interest. Testing its 200-day simple moving average. Upside momentum supports the trade idea. Our profit target is $64.00 with a trailing stop-loss at $52.00. | A wave b formation of the Elliott Wave theory remains of interest. The price is just below the 200-day simple moving average. Upside momentum has halted, which is a concern. Our profit target is $395.00 with a trailing stop-loss at $333.00. |
| Time to exit | 20 August 2025 | 17 October 2025 | 28 April 2026 |
| Share Name and Position | MET - Buy (Continue to hold) |
ABBV - Buy (Continue to hold) |
MSI - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 79.32 | 185.72 | 422.93 |
| Current Price | 79.66 | 189.77 | 417.36 |
| Movement | +0.4% | +2.2% | -1.3% |
| Comment | A rising wedge pattern remains of interest. The price is below the 200-day simple moving average, with the trade is viewed as counter-trend. Upside momentum has halted, which is a concern. Our profit target is $89.00 with a trailing stop-loss at $74.00. | An upward sloping channel pattern remains of interest. Testing the 200-day simple moving average, with fading downside momentum supporting the counter-trend idea. Our profit target is $216.00 with a trailing stop-loss at $174.00. | The start of Wave five of the Elliott Wave theory remains of interest. Remains below its 200-day simple moving average, with muted upside momentum supporting the counter-trend idea. Our profit target is $476.00 with a trailing stop-loss at $402.00. |
| Time to exit | 29 August 2025 | 20 August 2025 | 13 August 2025 |
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