Stock of the Day

February 1, 2022

Halliburton (HAL)

$20.86
-$0.35 (-1.7%)
Market Cap: $17.98B

About Halliburton

Halliburton Company provides products and services to the energy industry worldwide. It operates through two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services that include stimulation and sand control services; cementing services, such as well bonding and casing, and casing equipment; and completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, and service tools, as well as liner hanger, sand control, and multilateral systems. This segment also provides electrical submersible pumps, as well as artificial lift services; production solutions comprising coiled tubing, hydraulic workover units, downhole tools, and pumping and nitrogen services; pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning; and specialty chemicals and services. The Drilling and Evaluation segment offers drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; drilling systems and services; wireline and perforating services consists of open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services. This segment also provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management and integrated asset management services. Halliburton Company was founded in 1919 and is based in Houston, Texas.

Halliburton Bull Case

Here are some ways that investors could benefit from investing in Halliburton:

  • The current stock price is around $21.91, which may present a buying opportunity for investors looking for value in the energy sector.
  • Halliburton has a strong market capitalization of approximately $18.89 billion, indicating a solid position in the industry and potential for growth.
  • The company recently announced a quarterly dividend of $0.17, translating to an annualized yield of about 3.10%, which can provide a steady income stream for investors.
  • Institutional investors and hedge funds own over 85% of Halliburton's stock, suggesting strong confidence from major financial players in the company's future performance.
  • Analysts have given Halliburton a "Moderate Buy" rating, with an average target price of around $36.95, indicating potential upside for investors.

Halliburton Bear Case

Investors should be bearish about investing in Halliburton for these reasons:

  • The stock has experienced significant volatility, with a 12-month high of $39.37 and a low of $18.72, which may deter risk-averse investors.
  • Recent insider selling, with over 206,000 shares sold, could signal a lack of confidence from company executives regarding future performance.
  • Analysts have recently adjusted their price targets downward, with some reducing their expectations for Halliburton's stock price, which may indicate caution in the market.
  • The company's debt-to-equity ratio stands at 0.68, which, while manageable, suggests that Halliburton has a moderate level of debt that could impact financial flexibility.
  • Market conditions in the energy sector can be unpredictable, and any downturn could adversely affect Halliburton's operations and profitability.

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