Stock of the Day

February 1, 2022

Halliburton (HAL)

$22.36
-$3.35 (-13.0%)
Market Cap: $19.41B

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 has a current stock price of $25.33, which may present a buying opportunity for investors looking for value in the energy sector.
  • The company offers a dividend yield of 2.70%, providing a steady income stream for investors, which is particularly attractive in a low-interest-rate environment.
  • Analysts have a consensus rating of "Moderate Buy" with a price target of $37.42, indicating potential upside for investors based on current market conditions.
  • Recent increases in institutional ownership, with hedge funds owning 85.23% of the stock, suggest strong confidence in Halliburton's future performance.
  • Halliburton's low dividend payout ratio of 24.03% indicates that the company retains a significant portion of its earnings for reinvestment, which could lead to growth and increased shareholder value over time.

Halliburton Bear Case

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

  • Recent analyst downgrades and price target reductions from firms like Wells Fargo and UBS indicate a cautious outlook on Halliburton's stock performance.
  • Insider selling has been notable, with insiders selling 206,782 shares worth over $5 million in the last 90 days, which may signal a lack of confidence in the company's short-term prospects.
  • The stock has experienced volatility, with a 52-week range from $23.42 to $41.56, suggesting potential risks for investors in terms of price fluctuations.
  • Market conditions in the energy sector can be unpredictable, and Halliburton's performance is closely tied to oil prices, which can impact revenue and profitability.
  • Analysts have noted a mixed sentiment, with several maintaining hold ratings, indicating uncertainty about the stock's future performance.

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