4-Star Stocks Poised to Pop: Baker Hughes

Market-trouncing returns could be written in this 4-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Sep 5, 2012 at 12:00AM

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oilfield service specialist Baker Hughes (NYSE: BHI) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Baker Hughes' business and see what CAPS investors are saying about the stock right now.

Baker Hughes facts

Headquarters (founded) Houston (1972)
Market Cap $19.6 billion
Industry Oil and gas equipment and services
Trailing-12-Month Revenue $21.3 billion
Management CEO Martin Craighead
CFO Peter Ragauss
Return on Equity (average, past 3 years) 8.1%
Cash/Debt $792.0 million / $5.0 billion
Dividend Yield 1.3%
Competitors Halliburton

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,231 of the members who have rated Baker Hughes believe the stock will outperform the S&P 500 going forward.   

Six months ago, one of those bulls, All-Star JPresbrown, tapped Baker Hughes as a particularly solid bargain opportunity:

A bit of a contrarian play -- the stock has massively underperformed the market and been downgraded by analysts because of the glut of natural gas. Everyone knows business is slowing which makes this a good time to establish a position in a solid company with decent fundamentals.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong five-star rating, Baker Hughes may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.