Louis Navellier’s 10 New Stock Picks

8. 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.”