Halliburton (HAL) stock: undervalued or a value trap?

5:38 am ET, 19 Oct 2018

Halliburton Company (HAL) shares are trading at $37.95, down -4%. The company is announcing its quarterly earnings results on Monday before the market opens.  What's driving HAL stock price? What's HAL stock price forecast?

Halliburton is one of the leading oil services company in the world. The stock faced some pressure after releasing second-quarter results. The results were satisfactory but the third-quarter guidance was below analysts' expectations. The Permian Basin constraints such as the shortage of pipelines are short-term concerns for the company.

The company is now available for purchase at an attractive forward P/E ratio of 16.35. However, some investors feel that Halliburton’s profits might drop because of the pricing pressure from its competitors. Last quarter’s revenue rose 24% to $6.15 billion and earnings per share came at $0.58 compared to $0.03 for the same period last year.

Third-quarter results will be released before market open on October 22, 2018.  Analysts expect the company to earn $0.49 per share on revenue of $6.13 billion. The company beat analysts’ estimates in the previous four quarters.

What is the sentiment towards the HAL stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending negative. 

Over the last month, Halliburton Company (HAL) returned +3.83%.

Halliburton Company (HAL) forward P/E ratio is 16.35, and it’s low compared to its industry peers’ P/E ratio.

Halliburton Company (HAL) average analyst price target ($54.04) is 36.46% above its current price ($39.60).

For the latest price and information on Halliburton Company, please visit Finstead and search for "HAL price" or "HAL news".

Halliburton Company (HAL) Stock Guide

Updated at: 3:29 am ET, 17 Sep 2020

Before we start: if you're looking for HAL stock price, you can quickly find it out by visiting Finny and typing "HAL quote". If you're looking for a quick scoop on HAL stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "HAL". You'll get all this info in one place. Or you can just type "HAL news" to get the latest stock news.

Looking to buy or sell Halliburton Company (HAL)? Interested in getting the full scoop on HAL, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this HAL stock guide, we'll address key questions about HAL, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are HAL earnings?
2. What is HAL dividend?
3. What is HAL dividend yield?
4. What is HAL stock forecast (i.e., prediction)?
5. HAL buy or sell? What is HAL Finny Score?
6. What are the reasons to buy HAL? Why should I buy HAL stock?
7. What are the reasons to sell HAL? Why should I sell HAL stock?
8. What are HAL key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are HAL earnings?

HAL trailing 12-month earnings per share (EPS) is -$4.62.

2. What is HAL dividend?

HAL forward dividend is $0.18.

3. What is HAL dividend yield?

HAL forward dividend yield is 1.11%.

Analyst Predictions

4. What is HAL stock forecast (i.e., prediction)?

Based on HAL analyst price targets, HAL stock forecast is $15.63 (for a year from now). That means the average analyst price target for HAL stock is $15.63. The prediction is based on 38 analyst estimates.

The low price target for HAL is $10.00, while the high price target is $22.50.

HAL analyst rating is Buy.

Analysis

5. HAL buy or sell? What is HAL Finny Score?

#{finnyScore:50}Our quantitative analysis shows 4 reasons to buy and 4 reasons to sell HAL, resulting in Finny Score of 50.

6. What are the reasons to buy HAL? Why should I buy HAL stock?

Here are the reasons to buy HAL stock:

  • Halliburton is the leader of the North American unconventional services market, thanks to its dominance in pressure pumping.
  • Whereas Schlumberger has consistently had the industry’s best margins, Halliburton has proven more adept at keeping its capital intensity to a minimum while still being a technology leader in many of its end markets. This is a crucial trait for being able to generate economic profits in a business as competitive as oilfield services.
  • HAL profitability is improving. The YoY profit margin change was 34.03 percentage points. See HAL profitability chart.
  • HAL forward dividend yield is 1.11%, higher than the industry (0.32%) and sector (0.33%) forward dividend yields. See HAL forward dividend chart.
  • HAL average analyst rating is Buy. See HAL analyst rating chart.
  • HAL cash to debt ratio is 0.17, higher than the average industry (0.14) and sector (0.09) cash to debt ratio. See HAL cash to debt chart.

7. What are the reasons to sell HAL? Why should I sell HAL stock?

Let's look at the reasons to sell HAL stock (i.e., the bear case):

  • The majority of areas of the services sector are suffering from overcapacity and structurally weakened demand, which is likely to keep a lid on how much pricing can recover in the coming years.
  • An oversupply of pressure-pumping capacity in North America has weighed heavily on Halliburton’s margins. Given fragmented nature of this space, perpetual pricing pressure could prevent economic profits from sustainably returning to its largest business line.
  • HAL quarterly revenue growth was -46.10%, lower than the industry and sector average revenue growth (0.02% and -0.04%, respectively). See HAL revenue growth chart.
  • HAL forward P/E ratio is 31.82, which is high compared to its industry peers’ P/E ratios. See HAL forward P/E ratio chart.
  • HAL short share of float is 6.14%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See HAL short share of float chart.
  • HAL short interest (days to cover the shorts) ratio is 2.82. The stock garners more short interest than the average industry, sector or S&P 500 stock. See HAL short interest ratio chart.

Key Stats

8. What are HAL key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for HAL:

Metrics HAL
Price $12.67
Average Price Target / Upside $15.63 / 23.36%
Average Analyst Rating Buy
Forward Dividend Yield 1.11%
Industry Oil & Gas Equipment & Services
Sector Energy
Number of Employees 60,000
Market Cap $14.26B
Forward P/E Ratio 31.82
Price/Book Ratio 0.75
Revenue (TTM) $18.97B
YoY Quarterly Revenue Growth -46.10%
Profit Margin -21.35%

If you liked this analysis, check out Stock Guides for other stocks.

Follow Us