What Makes Baker Hughes Company (BKR) a Good Investment?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund’s Investor Class fund ARTMX returned -7.40%, Advisor Class fund APDMX posted a return of -7.37%, and Institutional Class fund APHMX returned -7.35%, compared to a -7.12% return for the Russell Midcap Growth Index. US equities achieved solid Q4 gains, concluding a strong year. After a period of strong growth stock performance in 2023 and 2024, value stocks gained the lead in Q1 2025. In a risk-averse environment, investors shifted towards lower-volatility equities, especially in the utilities and consumer staples sectors, alongside those with higher dividend yields. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Baker Hughes Company (NASDAQ:BKR. Baker Hughes Company (NASDAQ:BKR) offers technologies and services to the energy and industrial value chain globally. The one-month return of Baker Hughes Company (NASDAQ:BKR) was 2.91%, and its shares gained 14.13% of their value over the last 52 weeks. On May 5, 2025, Baker Hughes Company (NASDAQ:BKR) stock closed at $36.75 per share with a market capitalization of $36.41 billion.

Artisan Mid Cap Fund stated the following regarding Baker Hughes Company (NASDAQ:BKR) in its Q1 2025 investor letter:

"During the quarter, we initiated new GardenSM positions in Baker Hughes Company (NASDAQ:BKR), Snowflake and Viking. As a leading oil and gas equipment and services provider, Baker Hughes generates 60% of its revenue from oilfield services and equipment. However, its expanding industrial and energy technology segment, driven by secular growth in liquefied natural gas (LNG), has been further diversifying its revenue stream. We believe Baker Hughes is well positioned for profitable growth from Europe’s increasing demand for US LNG and rising gas infrastructure investments to meet growing electricity demand. Additionally, the potential end of the US moratorium on LNG export permits under the new Trump administration could provide further tailwinds. The rising contribution of aftermarket service revenues should also help reduce the company’s cyclicality."

Baker Hughes Company (NASDAQ:BKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held Baker Hughes Company (NASDAQ:BKR) at the end of the fourth quarter, compared to 45 in the third quarter. While we acknowledge the potential of Baker Hughes Company (NASDAQ:BKR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Baker Hughes Company (NASDAQ:BKR) and shared the list of energy companies with the highest upside potential. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.