Baker Hughes (NASDAQ: BKR) reported a revenue of $6.8 billion for the second quarter, showing a 13% increase in its Industrial & Energy Technology segment, which generated $2.8 billion. The company’s stock increased over 9.5% following its earnings report, reflecting a growing interest in its transformation towards digital automation and energy infrastructure.
The U.S. defense budget for fiscal 2025 is set to exceed $900 billion, with significant allocations towards unmanned systems, energy resilience, and digital warfare. Baker Hughes is positioning itself for potential involvement in defense by aligning its technologies, particularly in predictive maintenance and modular electrification systems, with U.S. Department of Defense requirements.
BKR’s stock is currently trading at a forward price-to-earnings (P/E) ratio of 16.8x and has a dividend yield of 2.4%. A $3 billion share repurchase authorization indicates further financial strength. Despite an RSI above 80, suggesting a possible pullback, the stock is viewed as a good value in the current market environment.
