Halliburton Hits 52-Week High At $67.35 - Analyst Blog

Shares of Halliburton Company HAL hit a 52-week high of $67.35 on Jun 10, 2014. In fact, the Houston, TX-based oilfield services behemoth has seen its stock price climb some 34.2% year to date. This price appreciation can be attributed to its superior business model, attractive fundamentals and the ability to grow cash flow.  

Why the Bullishness?

Halliburton is among the top three players in each of its product/service categories and is present in all major hydrocarbon-producing regions of the world. The company, which has surpassed earnings estimates in each of the last 6 quarters, has tie-ups with both publicly traded and national oil companies worldwide.

Additionally, Halliburton's international operations continue to reflect strong demand for its services on the back of higher activity. This is expected to be a key growth driver going forward with pricing in the region remaining competitive. We have identified Latin America – offering enough shale development opportunities – as a key market in this regard. Additionally, despite certain issues in Halliburton's core U.S. segment, the long-term prospects for the business remain robust.

Moreover, Halliburton's first-quarter earnings per share − from continuing operations – came at in at 73 cents, beating the Zacks Consensus Estimate of 71 cents and improving from the year-ago adjusted figure of 67 cents. The earnings strength can be attributed to improved stimulation work in the U.S. and increased profits from its pressure pumping business in Argentina.

Finally, last September, Halliburton was granted a reprieve from the United States Department of Justice, when it closed its investigation into the company's role in the Gulf of Mexico's Macondo well disaster. We believe that the judge's acceptance of Halliburton's guilty plea removes an overhang from the oilfield service provider's future.

Zacks Rank & Stock Picks

With Halliburton shares trading at a 52-week high, any upside from here may be limited, as suggested by the company's Zacks Rank #3 (Hold).

Meanwhile, one can look at better-ranked players in the same industry like C&J Energy Services Inc. CJES, Emerge Energy Services LP EMES and Basic Energy Services Inc. BAS. C&J Energy Services and Emerge Energy Services sport a Zacks Rank #1 (Strong Buy) while Basic Energy Services carries Zacks Rank #2 (Buy).
 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
HALLIBURTON CO HAL: Free Stock Analysis Report
 
EMERGE ENRG SVC EMES: Free Stock Analysis Report
 
BASIC EGY SVCS BAS: Free Stock Analysis Report
 
C&J ENERGY SVCS CJES: Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorAnalyst Ratings
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!