| Can Halliburton (HAL) Cope with Weakness in Crude Price? | |
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We issued an updated research report on Halliburton Company HAL on Aug 11, 2015. The company is a leading player in the oilfield services industry and reported better-than-expected second-quarter results. However, the company’s operations are likely to feel the weight of prolonged weakness in crude prices.
The positives and negatives are reflected in Halliburton’s current Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
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 enjoys a strong relationship with both publicly traded and the national oil companies worldwide.
Last month, Halliburton reported second-quarter 2015 results. The company’s earnings per share from continuing operations came at 44 cents, which surpassed the Zacks Consensus Estimate of 29 cents. Moreover, the top line beat the Zacks Consensus Estimate by 0.3%. Higher profitability in Brazil, improved drilling activities in the Middle East/Asia and cost-cut measures led to the outperformance.
Additionally, Halliburton is set to benefit from its deal to buy Baker Hughes. Following the closure of the acquisition – expected in the second half of this year – the combined company will be a force to reckon with.
However, the crude pricing environment is still weak and is expected to remain so throughout 2015. Following low crude prices, most of the drillers have halved their 2015 capital spending from 2014. Hence, Halliburton, which supports drilling players in setting up oil wells, is also expected to earn less in 2015.
Stocks to Consider
Some better-ranked players in the energy sector are Seadrill Partners LLC SDLP, Valero Energy Partners LP VLP and Alon USA Energy, Inc. ALJ. Each of these stocks sports a Zacks Rank #1 (Strong 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 >> 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 ALON USA ENERGY (ALJ): Free Stock Analysis Report SEADRILL PTNRS (SDLP): Free Stock Analysis Report VALERO EGY PTNR (VLP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Halliburton is a and oil producing company based in United states of america. Halliburton is listed in United States of America. Its market capitalisation is US$ 33.4 billions as of today (€ 31.2 billions). Its stock quote reached its lowest recent point on January 25, 2002 at US$ 10.06, and its highest recent level on April 26, 2024 at US$ 38.54. Halliburton has 867 249 984 shares outstanding. |