12 Best Oil Refinery Stocks To Invest In According to Analysts

6. Baker Hughes Company (NASDAQ:BKR)

Stock Upside Potential: 13.84%

Baker Hughes Company (NASDAQ:BKR) is an energy technology company that provides solutions for energy and industrial customers worldwide. The company is also involved in the oil refining business through an integrated suite of high-performance equipment, chemicals, real-time data technology, and services.

Baker Hughes Company (NASDAQ:BKR) showed a strong performance in Q4 2024 as its adjusted EPS remained on an impressive growth trajectory, increasing 37% from Q4 of 2023 and up 47% for the full year. The company’s revenue also rose by 7.7% to $7.364 billion, beating the consensus estimate by over $293 million. Moreover, BKR ended 2024 with total orders of $28.2 billion, including $13 billion of IET orders that marked the second-highest order total for the segment.

Baker Hughes Company (NASDAQ:BKR) maintains a strong balance sheet and generated a strong free cash flow of $894 million during Q4 2024, resulting in a record annual free cash flow of $2.3 billion. The company remains committed to returning 60% to 80% of free cash flow to shareholders and distributed $1.3 billion in dividends and share repurchases last year, amounting to approximately 60% of its cash flow. BKR increased its quarterly dividend by 10% to $0.23 per share last month, marking the fourth consecutive year that it has raised its dividend, increasing by 28% since Q3 of 2022.

Shares of Baker Hughes Company (NASDAQ:BKR) have surged by over 61% over the last year, putting it among the 12 Hot Oil Stocks to Buy According to Hedge Funds.