We recently published a list of Louis Navellier’s 10 New Stock Picks. In this article, we are going to take a look at where Baker Hughes Company (NASDAQ:BKR) stands against other Louis Navellier’s new stock picks.
Navellier & Associates is an independent money management firm founded in 1987 by renowned growth analyst Louis Navellier. Based in Reno, Nevada, the firm has more than thirty years of experience serving both individual and institutional clients through a disciplined, style-consistent investment approach. The firm’s mission is to maximize returns while managing excessive risk, offering customized portfolio strategies that incorporate a proprietary blend of quantitative and fundamental analysis. Navellier’s investment philosophy centers around identifying and exploiting inefficiencies in the market to uncover high-potential growth stocks. Unlike market indexes and firms that mimic market indexes, Navellier & Associates focuses on outperforming them, resulting in portfolios with low correlation to benchmarks, increased diversification, and reduced risk.
At the heart of Navellier’s investment process is a rigorous three-step, bottom-up stock selection methodology. The first step involves applying a proprietary quantitative screening process to evaluate market and individual stock statistics, specifically measuring reward through alpha and risk through standard deviation. This process narrows the investment options to stocks that rank in the upper percentiles for their risk/reward metrics. In the second step, fundamental analysis is used to identify stocks with exceptional profit margins, robust earnings growth, and forward-looking, reasonable price-to-earnings ratios. Finally, a proprietary optimization model allocates stocks within the portfolio to maximize alpha while minimizing volatility, ensuring that each portfolio is well-diversified across multiple sectors and industries. These strategies are particularly well-suited for long-term investors seeking steady returns in both bull and bear markets.
Louis Navellier himself brings over three decades of expertise to the firm. Since 1980, he has published quantitative research on growth stocks and remains a leading voice in the investment community. As the Founder, Chairman, Chief Investment Officer, and Chief Compliance Officer of Navellier & Associates, he continues to oversee the same portfolios he helped launch. His investment insights have earned him frequent appearances on CNBC, Fox Business News, and regular quotes in leading financial outlets such as Bloomberg and MarketWatch. He has been featured in major publications like Forbes, Fortune, Barron’s, and The Wall Street Journal, and profiled in books such as Secrets of the Investment All-Stars and Investing Under Fire. Today, the firm manages over $1 billion in private and institutional accounts and remains a sought-after resource for high-net-worth individuals and institutions alike.
Navellier & Associates offers tailored portfolio reviews, designed to help clients make sound financial decisions aligned with their preferences, individual goals, and risk tolerance. These reviews include a comprehensive portfolio analysis, risk assessment, and personalized investment recommendations. Portfolios managed by Navellier range from $100,000 to over $100 million, and all recommendations are made on a person-by-person basis. This level of customization underscores the firm’s belief that every investor is unique and deserves a strategy that reflects their personal financial objectives.
In addition to its financial expertise, the Navellier team is composed of passionate professionals who share common interests and life goals with their clients. From hiking and skiing to golfing and parenting, the firm’s staff brings a personal touch to its services, fostering genuine connections with investors. Navellier & Associates is deeply committed to providing not only top-tier financial management but also exceptional client service, innovative investment tools, and cutting-edge market research. With a homegrown foundation and a global outlook, Navellier continues to help clients achieve long-term financial security through disciplined, adaptive, and data-driven investment strategies.
As of its most recent 13F filing for the fourth quarter of 2024, Navellier & Associates reported managing approximately $834 million in securities. The firm’s top ten holdings account for 29.42% of this portfolio, reflecting its concentrated yet carefully optimized investment strategy grounded in systematic analysis and decades of market experience.
Our Methodology
We searched through Navellier & Associates’ Q4 2024 13F filings to identify the new stock picks that the firm invested in during the fourth quarter of the year. From the resultant data, we ranked the equities based on the hedge fund’s stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A drilling rig on a remote oilfield, its tower silhouetted against a setting sunset.
Baker Hughes Company (NASDAQ:BKR)
Number of Hedge Fund Holders as of Q4: 58
Navellier & Associates’ Equity Stake: $3.02 Million
For more than a century, Baker Hughes Company (NASDAQ:BKR) has been at the forefront of energy innovation, leveraging the power of engineering, data, and science to transform the energy sector. As a leading energy technology company, Baker Hughes operates through two primary segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). These segments are strategically organized around the distinct markets and customer needs they serve, providing a diverse portfolio of equipment and service capabilities across the energy and industrial value chains.
The year 2024 marked a pivotal chapter for Baker Hughes Company (NASDAQ:BKR), delivering outstanding financial performance and achieving new quarterly and annual records in revenue, free cash flow, and key profitability measures. Chairman and Chief Executive Officer Lorenzo Simonelli emphasized that the company’s strategy to prioritize profitable growth and ongoing margin improvements is paying off. In his statement, Simonelli expressed optimism for 2025, anticipating continued strong EBITDA growth, particularly driven by the Industrial & Energy Technology segment.
For the fourth quarter of 2024, Baker Hughes Company (NASDAQ:BKR) reported revenue of $7.4 billion, reflecting an 8% increase year-over-year. The company achieved earnings per share (EPS) of $1.18 and adjusted EBITDA of $1.3 billion, up 20% compared to the same period in 2023. Operating activities generated $1.19 billion in cash, with free cash flow reaching $894 million. These strong quarterly results capped a successful full year, with total revenue climbing to $27.8 billion, a 9% year-over-year increase. The company recorded a net income attributable to shareholders of $2.98 billion and an EPS of $2.98. Adjusted EBITDA rose by 22% to $4.59 billion, while cash flows from operating activities totaled $3.33 billion and free cash flow amounted to $2.26 billion.
Demonstrating its commitment to shareholder returns, Baker Hughes Company (NASDAQ:BKR) returned $1.32 billion to shareholders in 2024, including $484 million through share repurchases. Reinforcing confidence in the company’s financial strength and future earnings growth, Simonelli highlighted the decision to increase the company’s quarterly dividend by 10%, raising it to $0.23 per share.
ClearBridge Value Strategy stated the following regarding Baker Hughes Company (NASDAQ:BKR) in its Q4 2024 investor letter:
“Our largest sell was Baker Hughes Company (NASDAQ:BKR), which we made to fund our new position in oilfield service provider peer Schlumberger. While we acknowledge that Baker Hughes has stronger near-term tailwinds, its strong performance has resulted in a historically wide valuation gap to Schlumberger. Schlumberger has similar exposure to the oil and gas industry, but also has an improving portfolio of assets and greater digital initiatives that we believe will lead it to outperform Baker Hughes over the long run.”
Overall, BKR ranks 8th on our list of Louis Navellier’s new stock picks. While we acknowledge the potential of BKR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BKR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.