One of the top energy companies with the highest potential
Recently, I’ve published a list of Top 15 energy companies with the highest potential. In this article, we will look at where Baker Hughes Company (NASDAQ: BKR) plays against other top energy companies.
After recording notable profits in the first three months of 2025, the energy sector witnessed a massive decline in April, mainly due to the ongoing global trade war caused by President Trump’s tariffs and the outlook for a slowdown. The overall energy sector has declined by about 3.8% since the start of the year, compared to a decline of about 5.8% in the wider market. Naturally, the recession is led by the oil and gas sector, which is over 15% above YTD.
The main reason behind this fall is the decline in global prices for crude oil, caused by global trade, fear of demand, and the continued uncertainty surrounding OPEC+’s recent decisions. West Texas intermediate crude prices are currently hovering at a year-over-year low level of less than $62 within a few years, at over 25%. Worse, the International Energy Agency has recently cut its 2025 oil demand growth forecast to 300,000 barrels per day compared to last month, warning the world to “buckle” amid trade tensions.
That said, there is a sector that is still quite bullish in the energy industry, with liquefied natural gas being a prime example. The United States is already the world’s largest LNG exporter, and exports have grown consistently over the past decade. Still, the industry continues to thrive after receiving a lot of support from the Trump administration, which has helped the US fossil fuel sector boost its major agenda. According to Wood Mackenzie, a long-term LNG offtake contract of 15.5 million tonnes per year (MTPA) was signed in the first quarter of 2025, following a record 81 MTPA last year. These figures are expected to surge in the coming months after more and more countries are trying to export US LNG to reduce the trade gap with the US following the White House tariff threat.
Another important growth driver in the energy sector is the ongoing AI boom and its accompanying power-hungry data centers. According to a study by the American Clean Power Association, U.S. electricity demand is expected to surge by 35-50% by 2040, driven by domestic manufacturing growth, data centers and mass electrification. The main candidates to meet this enormous demand are clean, reliable, and abundant natural gas. By the end of the decade, a total of 80 new gas power plants could be built in the United States, according to the Energy Data Provider Enverus. That said, natural gas isn’t as cheap as a year ago, as prices have risen by around 36.6% over the past 52 weeks.
Another important candidate is nuclear energy. It has recently emerged as a hot topic, especially after several high-tech giants, who are bystanders at the Theraweek Conference in Houston, signed a pledge to support the goal of tripling the world’s nuclear power capabilities by 2050.
Baker Hughes Company (BKR): One of the top energy companies with the highest potential
There was an excavation rig in a remote oil field, and its towers were silhouetted in the sunset.
To collect the data for this article, as of April 28, 2025, Wall Street analysts have investigated companies operating in the energy sector and compiled a list of stocks with the greatest potential for rising. Below is Energy company with the highest potential.
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Possibility of an increase as of April 28th: 39.37%
Baker Hughes Company (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers around the world
Baker Hughes Company (NASDAQ: BKR) reported its results for the first quarter 2025 last week, defeating the adjusted EPS at $0.51 and estimates at $0.04. The company’s revenue is $6.43 billion, but it’s just $7,462 million, which missed its forecast. BKR recorded $6.5 billion orders during the quarter, including $3.2 billion IET orders. Additionally, the company’s cash flow from operations was $709 million, generating $454 million in free cash flow in the first quarter. Baker Hughes returned $417 million to shareholders, including a $188 million share repurchase. The company has reiterated its commitment to returning 60% to 80% of its free cash flow to shareholders.
Baker Hughes Company (NASDAQ: BKR) projected total revenue of $27.755 billion in 2025 as LNG and gas infrastructure grows. The company plans to make the most of American LNG Boom, booking orders for US LNG projects at approximately $1.7 billion over the past two quarters. That said, BKR has potential impacts on core annual profits of between $100 million and $200 million due to the ongoing tariff war.
Overall, BKR 8th place A list of top energy companies with the highest potential. While we acknowledge the potential of BKR as an investment, our belief lies in the belief that AI stocks offer higher returns and hold a greater commitment to doing it within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for AI stocks that are more promising than BKR but are trading at less than five times the revenue, check out our report on this Cheapest AI stocks.
