Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil-field service specialist Baker Hughes
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||$18.9 billion|
|Management||Chairman/CEO Chadwick Deaton
CFO Peter Ragauss
|Return on Equity (Average, Past 3 Years)||9.5%|
|Cash/Debt||$803 million / $3.9 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 1,157 members who have rated Baker Hughes believe the stock will outperform the S&P 500 going forward. These bulls include All-Star dividendsrus, who is ranked in the top 15% of our community, and BigOlDave.
Just last month, dividendsrus tapped Baker Hughes as a timely bargain opportunity: "You could wait until the economy turns around to buy this stock, but you'd pay a lot more, now wouldn't ya?"
Over the next five years, Baker Hughes is even expected to grow its bottom line at a brisk pace of 31% annually. That's faster than peers like Halliburton (26%), Schlumberger (23%), and National Oilwell Varco
CAPS member BigOlDave expands on the outperform case:
[Baker Hughes] has been one of my disappointments this year. I moved out of [Baker Hughes] for about a year, but, when they acquired BJ Services in April 2010, they became a better oil fields servicer. They should outpace the Oil Fields Services ETF [Oil Services HOLDRS] and be more precise shot at the sector. …
Time for a sanity check:
* S&P gives it 4 stars (buy) …
* The Motley Fool [CAPS community] rates it 4 out of 5 stars.
So I think I'll give this one a little more time.
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