Stock of the Day

February 1, 2022

Halliburton (HAL)

$20.23
+$0.87 (+4.5%)
Market Cap: $16.64B

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 $20.24, which may present a buying opportunity for investors looking for value in the oilfield services sector.
  • Halliburton has received a consensus rating of "Moderate Buy" from analysts, indicating positive sentiment and potential for price appreciation.
  • Institutional ownership is high, with 85.23% of the stock held by institutional investors and hedge funds, suggesting confidence in the company's future performance.
  • Recent analyst reports have set an average price target of $33.84, indicating significant upside potential from the current price.
  • Halliburton's strong financial ratios, including a current ratio of 2.05 and a quick ratio of 1.54, suggest good liquidity and financial health, which can be reassuring for investors.

Halliburton Bear Case

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

  • Recent price target reductions by analysts, including a drop from $27.00 to $24.00 by Goldman Sachs, may indicate concerns about future performance.
  • Halliburton's stock has experienced volatility, with a one-year high of $38.35 and a low of $18.72, which could pose risks for investors seeking stability.
  • Insider selling has been noted, with significant shares sold by executives, which may raise red flags about the company's outlook from those who know it best.
  • The company's price-to-earnings ratio of 7.15, while low, may reflect market skepticism about its growth prospects in a competitive industry.
  • Recent market trends and economic conditions could impact demand for oilfield services, potentially affecting Halliburton's revenue and profitability.

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