Artificial intelligence has powered giant moves from the likes of Nvidia, Meta Platforms, Alphabet and Broadcom. As a result of those climbs, the latest bases for Nvidia, Broadcom and the others are late-stage patterns. Baker Hughes stock, on the other hand, has crafted an early stage, less risky base.
Plus, attracted by strong and steady growth and its own flavor of AI technology, demand from top-rated funds is fueling a breakout attempt for Baker Hughes. The oil and gas equipment firm has also secured a spot on the IBD Breakout Stocks Index alongside Broadcom.
Baker Hughes Rides Demand For Energy Stocks
As the Nasdaq jumps back above its 50-day moving average amid signs of sector rotation, Baker Hughes joins several other energy-focused names on the IBD Breakout Stocks Index that are pumping up nice moves.
Updated weekly, the screen also currently features DT Midstream, MPLX, Range Resources, Wester Midstream Partners and Kinetik.
Alternative energy stocks GE Vernova and Constellation Energy also make the list.
Sporting a strong 96 Composite Rating, Baker Hughes has generated average earnings growth of 53% over the last three quarters. Over the last three years, the Houston-based firm has averaged earnings growth of 75%. For the current year, analysts forecast earnings growth of 44%.
Signs of demand for the stock include a 1.2 up/down volume ratio and a B- Accumulation/Distribution Rating. Plus, 133 funds with an A+ rating from IBD own shares of BKR.
Last quarter, the company generated revenue just over $6.9 billion, marking a 4% year-over-year rise.
Baker Hughes is on tap to report Q4 and full-year numbers on Jan. 30.
See Who Joins Baker Hughes On The IBD Breakout Stocks Index
Baker Hughes Taps Into C3 AI
While Nvidia, Google and Broadcom grab the spotlight as AI stocks to watch, Baker Hughes has incorporated machine learning and other related technologies into its platform.
The company uses BakerHugesC3.ai, or BHC3, to help uncover patterns from large data sets, enabling predictive action for oil and gas operations. The cloud-based BHC3 applications address challenges across the upstream, midstream and downstream sectors.
Through a strategic alliance with Microsoft Azure, Baker Hughes says its BHC3 AI technologies can impact all aspects of energy-related operational efficiencies. That includes improving reliability and reducing downtime, optimizing production, and increasing yield. AI also goes beyond industrial operations to help organizations manage their energy transition away from fossil fuels to renewable and low-carbon sources.
Baker Hughes Stock Joins Breakout Brigade
Showing the strong market leadership among energy sector stocks, Baker Hughes is just one of many oil, gas and alternative energy stocks earning a blue dot in MarketSurge, which indicates exceptional relative strength.
So as Nvidia remains below its 50-day line, note how Baker Hughes stock is just one of many names fueling or looking for fuel new breakouts.
On Wednesday, the stocks cleared a 45.17 buy point in a cup pattern. In another sign of rising strength, its 21-day exponential moving average stands poised to cross back above the longer-term 50-day line.
While GE Vernova has climbed out of buy range, other names on the IBD Breakout Stocks index in or near new buy zones include DT Midstream, MPLX and Constellation Energy.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
