Why Baker Hughes Stock Jumped 18% in May
Shares of energy services giant Baker Hughes (NYSE: BKR) rose 18%, according to data from S&P Global Market Intelligence. That followed a nice rally in April, with the stock up a hefty 57% over the two months combined. Unfortunately, it remained down roughly 35% through the first five months of the year.
As you might suspect, there's a bigger story playing out here.
Baker Hughes provides products and services to the energy industry. It's one of the most diversified names in the space, selling into the upstream (drilling), midstream (pipeline), and downstream (chemicals and refining) sectors. Only oil prices have been trading near historic lows, helped along by excess oil piling up in storage following the plunge in demand related to COVID-19 containment efforts. In this environment, companies across the entire value chain have been pulling back hard. This will mean less business for Baker Hughes and, understandably, investors have punished the stock.
Source Fool.com
