Stock of the Day

February 1, 2022

Halliburton (HAL)

$29.96
+$0.69 (+2.3%)
Market Cap: $23.69B

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:

  • Halliburton's stock is currently priced at $26.15, which may present a buying opportunity for investors looking for value in the oilfield services sector.
  • The company has a consensus rating of "Moderate Buy" from analysts, indicating positive sentiment and potential for price appreciation.
  • Halliburton recently announced a quarterly dividend of $0.17 per share, providing a steady income stream for investors, with a dividend yield of 2.62%.
  • Analysts have set an average price target of approximately $39.79, suggesting significant upside potential from the current stock price.
  • Halliburton has a strong market capitalization of $22.97 billion, indicating stability and the ability to invest in growth opportunities within the energy sector.

Halliburton Bear Case

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

  • The company reported earnings of $0.73 per share, which was below analysts' expectations of $0.75, indicating potential challenges in meeting financial targets.
  • Halliburton's revenue for the latest quarter was down 1.8% compared to the same period last year, suggesting a decline in business performance.
  • Several analysts have recently lowered their price targets for Halliburton, reflecting a cautious outlook on the company's near-term performance.
  • The stock has experienced volatility, with a beta of 1.90, indicating that it is more volatile than the market, which could pose risks for investors.
  • With a debt-to-equity ratio of 0.74, Halliburton has a moderate level of debt, which could impact its financial flexibility in a fluctuating market environment.

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