Baker Hughes has been the weakest-performing stock in the industry and in the entire energy sector. The company’s expansion outside its sweet spot in the oil patch has required more investment to remain competitive, and more investment will likely be necessary going forward. Weak returns to shareholders are a result.
Analysts remain solidly bullish on the stock, with 21 of 26 having a Buy or Strong Buy rating. Five more rate the shares at Hold. At a share price of around $23.60, the upside potential based on a median price target of $32.65 is about 38.4%. At the high price target of $41.00, the implied upside is 73.7%.
The consensus third-quarter revenue estimate is $5.43 billion, up 7.5% sequentially and by 6.7% year over year. Adjusted EPS are forecast to jump sequentially by nearly 123% to $0.25. That is a year-over-year improvement of more than 56%. For the full 2022 fiscal year, analysts forecast EPS up 44.2% to $0.91 on sales of $21.51 billion, up 4.7%.
Baker Hughes stock trades at 26.0 times expected 2022 EPS, 14.8 times estimated 2023 earnings of $1.60 and 11.1 times estimated 2024 earnings of $2.14. The stock’s 52-week range is $20.41 to $39.78. Baker Hughes pays an annual dividend of $0.72 (yield of 3.02%). Total shareholder return for the past year was negative 9.8%.
Procter & Gamble
Dow stock Procter & Gamble Inc. (NYSE: PG) has seen its share price drop about 11.8% over the past 12 months. From a 52-week high posted in late January, shares retreated 26% to a 52-week low last week. CEO Jon Moeller dodged a shareholder vote last week that could have stripped him of his role as board chair. Moeller and two other board members, who were also reelected, faced a challenge from environmental groups who claim the company is not doing enough to combat deforestation.
Of 23 analysts covering the stock, 12 have a Buy or Strong Buy rating and 10 more have Hold ratings. At a share price of around $127.00, the upside potential based on a median price target of $150.65 is 18.6%. At the high price target of $170.00, the implied gain is 33.9%.
Analysts expect the company to report fiscal 2023 first-quarter revenue of $20.37 billion, up 4.4% sequentially and flat year over year. Adjusted EPS are pegged at $1.55, up 28.2% sequentially but 3.7% lower year over year. For the full fiscal year ending in June, estimates call for EPS of $5.85, up 0.8%, on sales of $79.99 billion, down 0.3%.
The shares trade at 21.7 times expected 2023 EPS, 20.3 times estimated 2024 earnings of $6.26 and 18.9 times estimated 2025 earnings of $6.73 per share. The stock’s 52-week range is $122.18 to $165.35. P&G pays an annual dividend of $3.65 (yield of 2.92%). Total shareholder return for the past year was negative 9.8%.
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