Which Oil & Gas Products/Services Stock is a Better Investment? By StockNews
The rising demand for oil & gas equipment and services, owing to increased extraction activities across the major oil-producing countries, is expected to drive the industry’s long-term growth. Both Schlumberger Limited (NYSE:) and Baker Hughes Company (NYSE:) are well-placed to benefit from the industry trends. Which stock is better to invest in now? You can read more about how Schlumberger Limited supplies technology and services to the global oil and gas industry. The Paris, France-headquartered company operates in four divisions: Digital & Integration; Reservoir Performance; Well Construction; and Production Systems. Baker Hughes Company (BKR), Houston, Tex. offers a range of technology and services around the world. The company operates through four segments: Oilfield Services (OFS); Oilfield Equipment (OFE); Turbomachinery & Process Solutions (TPS); and Digital Solutions (DS).
Increasing oil and gas extraction activities over the past few years have led to a rise in demand for oil & gas products and services globally. In addition, the need for technological advancements in drilling and the adoption of new techniques are major factors driving the growth of the oil & gas equipment industry. With a growth rate of 2.8%, the global oilfield equipment market will reach $144.43 trillion in 2027. BKR and SLB are both expected to benefit from industry tailwinds.
SLB’s price has increased 23.5% over the last nine months while BKR returned 11.4% during this time. Also, SLB’s 29.7% gains year-to-date compare with BKR’s 14.8% returns. In terms of their past year’s performance, BKR is the winner with 57.6% gains versus SLB’s 48.4%.
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