Stock of the Day

February 1, 2022

Halliburton (HAL)

$20.39
+$0.44 (+2.2%)
Market Cap: $17.53B

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 $19.58, which may present a buying opportunity for investors looking for value in the oilfield services sector.
  • Halliburton reported a revenue of $5.42 billion in its latest earnings, exceeding analyst estimates, indicating strong operational performance.
  • The company has a solid net margin of 10.90%, suggesting effective cost management and profitability.
  • Institutional investors hold a significant portion of Halliburton's stock, with 85.23% owned by such entities, which often indicates confidence in the company's future prospects.
  • Halliburton has a return on equity of 26.03%, reflecting efficient use of shareholders' equity to generate profits.

Halliburton Bear Case

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

  • Recent insider selling, with corporate insiders offloading 65,576 shares worth over $1.6 million, may signal a lack of confidence in the company's short-term outlook.
  • The stock has experienced a decline of approximately 2.5% recently, which could indicate market volatility or investor concerns.
  • Halliburton's debt-to-equity ratio stands at 0.68, which, while manageable, suggests that the company is not entirely free from debt obligations that could impact financial flexibility.
  • The price-to-earnings ratio of 6.91, while low, may also reflect market skepticism about future growth potential in a competitive industry.
  • Fluctuations in oil prices can significantly impact Halliburton's business, making it vulnerable to external market conditions.
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