The Zacks Analyst Blog Highlights: Baker Hughes, Halliburton, Schlumberger, Flotek Industries and Ford Motor

News provided by

Aug 12, 2014, 09:30 ET

CHICAGO, Aug. 12, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the company Baker Hughes Inc. (NYSE:BHI-Free Report), Halliburton Co. (NYSE:HAL-Free Report), Schlumberger Ltd. (NYSE:SLB-Free Report), Flotek Industries Inc. (NYSE:FTK-Free Report) and Ford Motor Co. (NYSE:F-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday's Analyst Blog:

Baker Hughes Counts 19 More Rigs, Oil Rigs Rise 15

In its weekly release, Houston-based oilfield services company Baker Hughes Inc. (NYSE:BHI-Free Report) reported a rise in the U.S. rig count (number of rigs searching for oil and gas in the country). This can be attributed to an increase in the tally of mainly oil-directed rigs.

The Baker Hughes data, issued since 1944, acts as an important yardstick for energy service providers in gauging the overall business environment of the oil and gas industry.

Analysis of the Data

Weekly Summary: Rigs engaged in exploration and production in the U.S. totaled 1,908 for the week ended Aug 8, 2014. This was up by 19 from the previous week's rig count.

The current nationwide rig count is more than double the lowest level reached in recent years (876 in the week ended Jun 12, 2009) and is above the prior-year level of 1,770. It rose to a 22-year high in 2008, peaking at 2,031 in the weeks ending Aug 29 and Sep 12.

Rigs engaged in land operations rose by 18 to 1,832, offshore drilling was up by 4 to 62 rigs, while inland waters activity fell by 3 to 14 units.

Natural Gas Rig Count: The natural gas rig count – which slumped to its lowest point last month since May 1993 – was up by 3 to 316. As per the most recent report, the number of natural gas-directed rigs is down approximately 61% from its recent peak of 811, achieved in 2012.

In fact, the current natural gas rig count is 81% below its all-time high of 1,606 reached in late summer 2008. In the year-ago period, there were 386 active natural gas rigs.

Oil Rig Count: The oil rig count was up by 15 to 1,588. The current tally is way above the previous year's rig count of 1,385. It has recovered strongly from the low of 179 in Jun 2009, rising 8.9 times.

Miscellaneous Rig Count: The miscellaneous rig count (primarily drilling for geothermal energy) rose by 1 to 4 from the previous week.

Rig Count by Type: The number of vertical drilling rigs rose by 5 to 378, while the horizontal/directional rig count (encompassing new drilling technology that has the ability to drill and extract gas from dense rock formations, also known as shale formations) was up by 14 to 1,530.

Gulf of Mexico (GoM): The GoM rig count here was up by 2 to 60.

Conclusion

A Key Barometer of Drilling Activity: An increase or decrease in the Baker Hughes rotary rig count heavily weighs on the demand for energy services – drilling, completion, production, etc. – provided by companies that include large-cap names like Halliburton Co. (NYSE:HAL-Free Report) and Schlumberger Ltd. (NYSE:SLB-Free Report).

However, our preferred pick in this group is Flotek Industries Inc. (NYSE:FTK-Free Report). The Houston, TX-based company – carrying a Zacks Rank #2 (Buy) – has a solid secular growth story with the potential to rise significantly from the current level.

Ford China Sales Up 25% in July, 33% YTD

Ford Motor Co. (NYSE:F-Free Report) sold 90,775 vehicles in China in Jul 2014, which reflects a 25% year-over-year increase over 72,834 units sold in Jul 2013. Year-to-date sales of Ford in the world's largest automobile market amounted to 640,031 units, up 33% from 480,555 vehicles sold in the first 7 months of 2013.

Ford Kuga recorded a 10% year-over-year increase in sales to 10,450 units in Jul 2014. Ford EcoSport's sales increased 22% to 7,302 vehicles in the month. Apart from Kuga and EcoSport, Ford Mondeo also remained popular in China. The car's sales grew an outstanding 807% to 10,154 units in Jul 2014. Meanwhile, sales of the Ford Transit commercial vehicle reached 6,066 units in July, up 11% year over year.

Meanwhile, Ford's passenger car joint venture, Changan Ford Automobile (CAF) witnessed a 19% year-over-year increase in vehicle sales in Jul 2014 to 64,130 units.

Further, Ford's commercial vehicle investment in China, Jiangling Motors Corporation (JMC), sold 22,031 wholesale vehicles in the month of July. Sales surged 33% over Jul 2013.

Going ahead, Ford plans to introduce 15 new vehicles in China by 2015-end. Moreover, in a bid to boost capacity to meet the rising demand from the nation, the automaker is setting up 3 new manufacturing plants in addition to the 7 plants it already has in the country.

Ford currently carries a Zacks Rank #3 (Hold).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on BHI - FREE

Get the full Report on HAL - FREE

Get the full Report on SLB - FREE

Get the full Report on FTK - FREE

Get the full Report on F - FREE

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.