Baker Hughes Inc. (NYSE: BHI) — This large-cap oil well services company came close to making a new high last week following a reversal from under its 50-day moving average.

This sector is strong due to the need for global exploration to offset the possible reduction in oil coming from the Middle East. BHI is uniquely situated as one of the largest oil field services companies and is modestly increasing its U.S. rig count. However, it is expected to undertake a more aggressive push into international markets.

Nasdaq.com reports that insiders have been strong buyers of the stock within the last three months — a very positive indication that they believe the stock to be undervalued. And S&P has a “four-star buy” on BHI and estimates that earnings of $3.76 in 2011 will rise 20% to $4.53 in 2012.

Technically, a break to new highs should catapult BHI to $85-plus with 45 days. Note the strong buy signal from the Moving Average Convergence/Divergence (MACD) indicator (red line crosses over blue) and the increase in accumulation. Buy BHI now.

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.