Is BKR a good stock to buy? We came across a bullish thesis on Baker Hughes Company on Jon’s Thoughts’s Substack by Jon Chu. In this article, we will summarize the bulls’ thesis on BKR. Baker Hughes Company’s share was trading at $62.54 as of April 22nd. BKR’s trailing and forward P/E were 24.05 and 24.33 respectively according to Yahoo Finance.
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Baker Hughes is positioned as a critical infrastructure and technology provider within the global energy ecosystem, with a business mix that spans traditional oilfield services and increasingly important gas transmission and power generation technologies. It manufactures and supplies a wide range of equipment required to move natural gas efficiently across long distances, including turbines, compression systems, and related infrastructure that are becoming increasingly essential as power demand accelerates.
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While often still perceived as a conventional oilfield services company, Baker Hughes is increasingly exposed to a structural shift in energy markets where gas transmission and reliable electricity generation are becoming urgent priorities. The company’s gas technology segment, including its turbine business, is well positioned to benefit as utilities, data centers, and industrial users accelerate investment in new capacity. This dynamic creates a potential multi-year demand cycle where Baker Hughes becomes a key enabler of the buildout of natural gas infrastructure, particularly if energy constraints tighten and governments and private operators rush to expand power generation capacity.
Even at roughly 20x earnings, the company is not priced as a deep value opportunity, but the quality of its assets and exposure to long-duration secular trends in energy infrastructure support a favorable long-term risk-reward profile. In addition, the traditional oilfield services business provides a cyclical hedge, allowing Baker Hughes to benefit if commodity prices rise and upstream investment increases, adding another layer of optionality to the investment case. Overall, Baker Hughes offers asymmetric upside as energy transition and demand pressures converge over time horizon.
Previously, we covered a bullish thesis on Halliburton Company (HAL) by Buffet_fromTemu in October 2024, which highlighted potential upside from increased drilling activity and geopolitical oil price shocks. HAL’s stock price has appreciated by approximately 40.63% since our coverage. Jon Chu shares a similar view but emphasizes Baker Hughes’ gas transmission and power infrastructure exposure over drilling-driven cyclicality.
Baker Hughes Company is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held BKR at the end of the fourth quarter which was 54 in the previous quarter. While we acknowledge the risk and potential of BKR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BKR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
