Baker Hughes Inc . (NYSE: BHI ) - This large-cap oil well services company rose to a new high late last month following a reversal from under its 50-day moving average and our recommendation on April 25.
The oil well services sector is strong due to the need for global exploration to offset the possible reduction in the flow of crude oil from the Middle East. BHI is uniquely situated as one of the largest oilfield services companies and is modestly increasing its U.S. rig count. However, it is expected to undertake a more aggressive push into international markets.
Nasdaq.com reports that insiders have been strong buyers of the stock within the last three months - a very positive indication that they believe the stock to be undervalued. S&P has a "four-star buy" on BHI and estimates that earnings of $3.76 in 2011 will rise 20% to $4.53 in 2012.
Technically, the stock broke its double-top , as expected, but is retracing the breakout as the result of a minor uptick in the U.S. dollar and profit-taking. For those who missed getting into BHI several weeks ago, you may have an opportunity to buy close to its bullish support line at $70.
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