There are two key reasons to buy the stock of energy equipment and services company Baker Hughes (NASDAQ: BKR). The first reason is its play on the medium-term outlook for spending in the energy industry. The second is a value investing opportunity based on the company playing catch-up with peers like Halliburton and Schlumberger and, in doing so, releasing a significant amount of value for investors. Here's the lowdown.

It's been a good year for the energy industry and energy services companies. The chart below shows the performance of three of the leading companies in the industry compared to the benchmark S&P 500 index. All three are up, but Baker Hughes' underperformance is notable.

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Source Fool.com