12 Hot Oil Stocks to Buy According to Hedge Funds

4. Baker Hughes Company (NASDAQ:BKR)

Gain Over Past 12 Months: 51.15%

Number of Hedge Fund Holders: 45

Baker Hughes Company (NASDAQ:BKR) is a supplier of oilfield services, products, technology, and systems to the worldwide oil and natural gas industry. The company conducts business in 120 countries around the globe and while its vast geographical footprint allows it to capitalize on more opportunities, it also exposes the energy technology company to various geopolitical risks such as political instability, trade disputes, or unfavorable regulatory changes in key markets.

Baker Hughes Company (NASDAQ:BKR) boasts a 40-year track record in the LNG industry and is expected to benefit tremendously from the expanding LNG infrastructure in the US. Just recently, the company announced that it has received an order from Bechtel Energy to supply gas technology equipment for two liquefaction plants for the first phase of Woodside Energy Group Ltd’s Louisiana LNG development opportunity.

Baker Hughes Company (NASDAQ:BKR) had a strong Q3 2024 as it reported another record quarterly EBITDA of over $1.2 billion and the third consecutive quarter of at least 20% YoY EBITDA growth. Moreover, the company continued to improve its EBITDA margins at an accelerated pace, increasing to 17.5%, which marked the highest margin quarter since 2017. BKR’s total company orders also remained at solid levels during the quarter, including $2.9 billion for its IET segment.

Baker Hughes Company (NASDAQ:BKR) continues to make strides in the fast-growing new energy business and the company booked orders of $971 million during the first nine months of 2024, anticipating to exceed the $1 billion mark by the end of the year. This marked a significant improvement from the $750 million in new energy orders that Baker Hughes received in 2023.

Baker Hughes Company (NASDAQ:BKR) maintains a strong balance sheet and ended its Q3 2024 with $2.7 billion in cash and $5.7 billion in total liquidity. The company generated $754 million in free cash flow during the third quarter and returned $361 million to shareholders, including $209 million of dividends and $152 million of share repurchases.