Founded in 1919 and headquartered in Houston, Texas, the company operates in over 80 countries, with its primary business lines including drilling and evaluation, completion and production, hydraulic fracturing and other services. The company’s customers include major oil and gas companies and independent operators in the energy industry. Halliburton has achieved several key milestones over the years, including being the first company city index: a reliable broker to log a well in the Gulf of Mexico and the first to perform hydraulic fracturing in the Permian Basin. In an $80 oil world where we see drilling activity rising by about 5% overseas and staying flat in North America, Halliburton can generate about $3.25 in earnings, giving shares a 12x multiple. At that level of earnings, it can pay its dividend and buy back about $1-1.5 billion in stock, enabling about 3% share count reduction.

• Consistent with Halliburton’s data, the Baker Hughes overseas rig count remains below pre-COVID levels, though it has been rising steadily.
• The scores are based on the trading styles of Value, Growth, and Momentum.
• It is less risky to invest in profitable companies, especially those with consistent profitability over the long term.
• The Style Scores are a complementary set of indicators to use alongside the Zacks Rank.

Halliburton Company share prices have moved between a 52-week high of $43.15 and a 52-week low of $27.59. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.

The Big 3 oilfield services (OFS) companies will likely report higher profits for the second quarter as resurgent demand in international markets and strong offshore drilling helped counter tepid acti… The energy industry has faced several challenges recently, including declining oil prices, increased regulatory scrutiny and growing concerns over climate change. These challenges have impacted the industry’s profitability and have led to increased competition among industry players. Halliburton’s primary competitors in the energy services industry include Schlumberger, Baker Hughes and National Oilwell Varco. The company has been focused on improving its competitive position by investing in new technologies and expanding its global footprint. All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns.

Zacks’ 7 BestStrong Buy Stocks for October, 2023

One of the company’s key growth drivers is the development of new technologies that can improve the efficiency and productivity of the energy industry. Halliburton has invested heavily in digitalization, automation and artificial intelligence to improve its services and products. The company is also focused on expanding its global footprint, particularly in emerging markets such as China and India.

This integration allows the U.S. clients to run pore-scale simulations simultaneously with physical laboratory experiments, revolutionizing the accuracy and innovation of digital rock characterization workflows. Chief Executive Officer Jeff Miller discusses the outlook for energy markets. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.

• Therefore, the long-term return of its stock is likely to be close to the rate of its business growth.
• This partnership combines Core Labs’ industry-leading expertise in reservoir description and optimization technologies with Halliburton’s specialization in pore-scale digital rock analysis.
• Estimates put exports of Iran’s heavy sour crude around 2 million barrels per day.

You can find your newly purchased HAL stock in your portfolio—alongside the rest of your stocks, ETFs, crypto, treasuries, and alternative assets. Supported by world-class markets data from Dow Jones and FactSet, and partnering with Automated Insights, MarketWatch Automation brings you the latest, most pertinent content at record speed and with unparalleled accuracy. So far today, approximately 5.28M shares of Halliburton Company have been exchanged, as compared to an average 30-day volume of 6.4M shares.

Is It Time to Sell HAL? Shares are up today.

We believe the GF Value Line is the fair value that the stock should be traded at. The stock price will most likely fluctuate around the GF Value Line. If the stock price is significantly above the GF Value Line, it is overvalued and its future guía para el desarrollo de software de outsourcing con éxito return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes.

Recent stocks from this report have soared up to +178.7% in 3 months – this month’s picks could be even better. This partnership combines Core Labs’ industry-leading expertise in reservoir description and optimization technologies with Halliburton’s specialization in pore-scale digital rock analysis. The result is a seamless integration of best-in-class digital rock characterization at nano, micro and macro levels.

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Therefore, the long-term return of its stock is likely to be close to the rate of its business growth. 15 Wall Street equities research analysts have issued «buy,» «hold,» and «sell» ratings for Halliburton in the last twelve months. There are currently 14 buy ratings and 1 strong buy rating for the stock. The consensus among Wall Street equities research analysts is that investors should «buy» HAL shares. In the company’s second quarter, Halliburton earned $0.77 in adjusted EPS as revenue rose by 14% to $5.8 billion. EPS rose by over 50% as operating margins also expanded by 329bp to 17.4%, due to the operating leverage inherent in the business.

Positive Outlook on Halliburton’s Future Earnings and Operational Efficiency Fuels Buy Rating

HAL’s beta can be found in Trading Information at the top of this page. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. The ongoing war between Israel and Hamas poses a risk to oil supply, and the escalation does not look likely to ease anytime soon.

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. If the ROIC is higher than the WACC, it indicates that the company is creating value for shareholders. Over the past 12 months, Halliburton Co’s ROIC was 17.25, while its WACC came in at 11.14. 15 equities research analysts have issued twelve-month price objectives for Halliburton’s shares. On average, they anticipate the company’s share price to reach $49.00 in the next twelve months.

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The company offers compression services to oil companies and independent producers, processors, gatherers, and transporters of natural gas and crude oil. Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Open to the Public Investing’s Fee Schedule to learn more. JSI and Jiko Bank are not affiliated with Public Holdings, Inc. (“Public”) or any of its subsidiaries. Additional information about your broker can be found by clicking here. Open to Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”).

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HAL’s historical performance
against its industry peers and the overall market.

Halliburton shares slumped after warning that lower oil and gas prices will reduce drilling in the second half of 2023. Halliburton failed to convince a U.S. federal jury on Thursday that a unit of rival oilfield services company ProFrac infringed its electric-fracking patents. Crude oil prices are up nearly 4.5% in mid-day trading after a weekend in which a war has broken out between Hamas and Israel. At this point, most analysts believe the effect on oil prices may be limi… Halliburton also develops and sells software to assist in evaluating wells, reserves, managing production flows, etc. This pivot to less capital-intensive offerings has also helped Halliburton bring cap-ex spending down to about 5-6% of revenues, from 8+% in years prior.

Additionally, Saudi Arabia and Russia are capping production and will continue to do so through year-end, in a bid to keep prices elevated. The strong cash flow from higher oil prices will enable E&P firms to continue to grow cap-ex budgets. Companies with poor financial strength offer investors a high risk of permanent capital loss. To avoid this, an investor must research and review a company’s financial strength before deciding to purchase shares.