Thursday, October 4, 2012

4-Star Stocks Poised to Pop: Baker Hughes

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil-field service specialist Baker Hughes (NYSE: BHI  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Baker Hughes' business and see what CAPS investors are saying about the stock right now.

Baker Hughes facts

Headquarters (Founded) Houston (1972)
Market Cap $19.6 billion
Industry Oil and gas equipment and services
Trailing-12-Month Revenue $18.9 billion
Management Chairman/CEO Chadwick Deaton
CFO Peter Ragauss
Return on Equity (Average, Past 3 Years) 9.5%
Cash/Debt $803 million / $3.9 billion
Dividend Yield 1.3%
Competitors Halliburton (NYSE: HAL  )
Schlumberger (NYSE: SLB  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,157 members who have rated Baker Hughes believe the stock will outperform the S&P 500 going forward. These bulls include All-Star dividendsrus, who is ranked in the top 15% of our community, and BigOlDave. �

Just last month, dividendsrus tapped Baker Hughes as a timely bargain opportunity: "You could wait until the economy turns around to buy this stock, but you'd pay a lot more, now wouldn't ya?"

Over the next five years, Baker Hughes is even expected to grow its bottom line at a brisk pace of 31% annually. That's faster than peers like Halliburton (26%), Schlumberger (23%), and National Oilwell Varco (NYSE: NOV  ) (16%).

CAPS member BigOlDave expands on the outperform case:

[Baker Hughes] has been one of my disappointments this year. I moved out of [Baker Hughes] for about a year, but, when they acquired BJ Services in April 2010, they became a better oil fields servicer. They should outpace the Oil Fields Services ETF [Oil Services HOLDRS] and be more precise shot at the sector. �

Time for a sanity check:
* S&P gives it 4 stars (buy) �
* The Motley Fool [CAPS community] rates it 4 out of 5 stars.

So I think I'll give this one a little more time.

What do you think about Baker Hughes, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

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