To The Moon

$Baker Hughes(BKR)$ rallied 5.8% on July 27 even as crude prices and most oil stocks fell. The divergence reflects its transition from a conventional oilfield-services provider into a broader supplier of liquefied-natural-gas equipment, industrial turbines and power infrastructure.

The company announced its results on July 26 for the quarter ended June 30 and discussed them with investors on July 27. Revenue declined 2% year over year to $6.74 billion, but adjusted earnings increased to $0.64 per share. Free cash flow reached $1.11 billion. Baker Hughes’ official second-quarter release provides the results.

Orders increased 49% to $10.5 billion. Industrial and Energy Technology orders doubled to a record $7.1 billion, while total remaining performance obligations reached $40.1 billion. Management increased its expected IET orders through 2028 to more than $45 billion.

The bullish thesis centres on rising electricity demand. Gas turbines and related equipment can supply dependable power for data centres and grids when renewable generation is insufficient or intermittent. LNG infrastructure provides another long-duration source of equipment and service revenue.

This business can partially offset weaker conventional drilling. Management expects global oil-and-gas producer spending to decline modestly during 2026, with reduced activity in Europe and the Middle East offsetting growth elsewhere. Reuters’ July 27 analysis discusses the regional outlook.

Risks include Middle Eastern logistical disruption, project delays and integrating the recently completed Chart Industries acquisition. Management expects regional disruption to reduce third-quarter IET revenue by approximately 1%–2%.

BKR Daily Chart

$Baker Hughes(BKR)$ closed at $60.59 after reaching $62.65.

BKR’s daily chart is approaching a key inflection point, with price rebounding from the July low near $53 and now testing the long-running descending trendline around $60.50–$62.50. The latest candle pushed above the trendline intraday but closed back near it, leaving a prominent upper wick that suggests sellers are still active and that the breakout has not yet been confirmed.

A decisive daily close above approximately $62.50, ideally followed by a successful retest, would improve the structure and could open a move toward $66, followed by the prior highs near $69–$70; in that scenario, a 45–75 DTE $62.50/$67.50 call debit spread would provide defined-risk exposure while reducing time-decay costs. Until confirmation appears, chasing the current move is less attractive, as another rejection could send BKR back toward $58, then $55–$56.

The evidence leans moderately bullish because record orders and power-infrastructure demand outweigh contracting upstream expenditure. The view would be invalidated by LNG or data-centre project cancellations, acquisition problems or backlog failing to convert into revenue and cash flow. This is personal opinion for education and is not financial advice.

@Tiger_SG @Tiger_comments @TigerStars @TigerClub @CaptainTiger @Daily_Discussion

Disclaimer: This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The views expressed are personal opinions based on publicly available information and are subject to change without notice. Investors should conduct their own research and consider their financial situation, risk tolerance, and investment objectives before making any investment decisions. I do not guarantee the accuracy or completeness of the information presented.