Baker Story

<div class='circular--portrait' style='background:#347AFC;color: #ffffff;font-size:4em;'>BH</div>
BKR -- USA Stock  

USD 24.37  0.61  2.44%

It seems Baker Hughes will continue to recover much faster as its share price surged up 0.09% today. The company current daily volatility is 3.09 percent, with a beta of 0.17 and an alpha of 0.71 over DOW. While some baby boomers are getting worried about machinery, it is reasonable to sum up Baker Hughes A. I will address the reasons why this entity does not get much respect from retail investors under the current market uncertainty.
Published over a month ago
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Is Baker Hughes (NYSE:BKR) a good short term trade as volatility advances?
Baker Hughes A has roughly 4.06 B in cash with 2.28 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.92. Our investment recommendation module complements current analysts and expert consensus on Baker Hughes. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
Investing in Baker Hughes, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Baker Hughes along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Baker Hughes' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Baker Hughes in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Baker Hughes. Your research has to be compared to or analyzed against Baker Hughes' peers to derive any actionable benefits. When done correctly, Baker Hughes' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Baker Hughes A.

How important is Baker Hughes's Liquidity

Baker Hughes financial leverage refers to using borrowed capital as a funding source to finance Baker Hughes A ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Baker Hughes financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Baker Hughes's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Baker Hughes, but it might be worth checking our own buy vs. sell analysis

Baker Hughes Correlation with Peers

Investors in Baker can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Baker Hughes A. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Baker Hughes and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Baker is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Baker for more details

A Deeper Perspective

Baker Hughes appears to be not too volatile, given 1 month investment horizon. Baker Hughes A secures Sharpe Ratio (or Efficiency) of 0.27, which signifies that the company had 0.27% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Baker Hughes A technical indicators you can presently evaluate if the expected return of 0.82% is justified by implied risk. Please makes use of Baker Hughes A Downside Deviation of 2.17, mean deviation of 2.16, and Risk Adjusted Performance of 0.255 to double-check if our risk estimates are consistent with your expectations.
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0.660.810.720.81
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Baker technical analysis connotes possible turnaround

Baker Hughes latest maximum drawdown advances over 18.85. Baker Hughes A currently demonstrates below-verage downside deviation. It has Information Ratio of 0.2 and Jensen Alpha of 0.71. However, we do advice investors to further question Baker Hughes A expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Baker Hughes

While some other companies within the oil & gas equipment & services industry are still a little expensive, even after the recent corrections, Baker Hughes may offer a potential longer-term growth to retail investors. While some before the next press release oriented retail investors may not share our view, we believe it may not be a good time to buy new shares of Baker.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Baker Hughes A. Please refer to our Terms of Use for any information regarding our disclosure principles.

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