Artificial intelligence has enabled giant initiatives like Nvidia (NVDA), Metaplatforms (META), Alphabet (GOOGLE) And Broadcom (AVGO). Because of these climbs, the latest bases from Nvidia, Broadcom and others are late-stage models. Baker Hughes stock, on the other hand, provided an early and less risky base.
Additionally, lured by strong, steady growth and its own flavor of AI technology, demand for top-rated funds is fueling a breakthrough bid for Baker Hughes (BKR). The oil and gas equipment company also earned a spot in the IBD Breakout Stocks Index alongside Broadcom.
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Baker Hughes drives up demand for energy stocks
As the Nasdaq moves 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 generating nice moves.
Updated weekly, the screen also currently offers DT Midstream (DTM), MPLX (MPLX), Range Resources (CRR), Wester Midstream Partners (WES) And Kinetic (KNTK).
Alternative energy stocks GE Vernova (GEV) And Constellation Energy (CEG) are also part of the list.
Sporting a strong 96 Composite ratingBaker Hughes has delivered an average profit growth of 53% over the past three quarters. Over the past three years, the Houston-based company has seen an average profit growth of 75%. For the current year, analysts forecast profit growth of 44%.
Signs of demand for the stock include a high/low volume ratio of 1.2 and an Accumulation/Distribution rating of B. Additionally, 133 funds rated A+ by IBD own shares of BKR.
Last quarter, the company generated just over $6.9 billion in revenue, a 4% year-over-year increase.
Baker Hughes is set to release fourth quarter and full year figures on January 30.
See who’s joining Baker Hughes on the IBD Breakout Stocks Index
Baker Hughes leverages C3 AI
While Nvidia, Google, and Broadcom are attracting attention as AI stocks to watch, Baker Hughes has integrated machine learning and other related technologies into its platform.
The company uses BakerHugesC3.aior BHC3, to help discover patterns from large data sets, enabling predictive action for oil and gas operations. Cloud-based BHC3 applications address the challenges of upstream, midstream and downstream industries.
Thanks to a strategic alliance with Microsoft (MSFT) Azure, Baker Hughes says its BHC3 AI technologies can impact all aspects of energy-related operational efficiency. This includes improving reliability and reducing downtime, optimizing production and increasing throughput. AI also goes beyond industrial operations to help organizations manage their energy transition from fossil fuels to renewable and low-carbon sources.
Baker Hughes Stock joins the Breakout Brigade
Showing strong market leadership among energy sector stocks, Baker Hughes is just one of many oil, gas and alternative energy stocks that earn a blue dot in MarketSurge, indicating exceptional relative strength.
So as Nvidia wallows below its 50-day line, note that Baker Hughes stock is just one of many names fueling or looking to fuel further breakthroughs.
On Wednesday, shares broke through a 45.17 buy point in a cross-section pattern. In another sign of growing strength, its 21-day exponential moving average is poised to move back above the 50-day long-term line.
While GE Vernova has moved 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 (FIGHT) 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 instead purchasing individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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