Halliburton: Still a Good Value - Analyst Blog
03 Maio 2013 - 12:20PM
Zacks
Shares of Halliburton
Co. (HAL) are trading near their 52-week high of $43.96.
In fact, the Houston, TX-based oilfield services behemoth has seen
its stock price climb some 20% since the beginning of the year.
Despite this price appreciation, we remain optimistic on the firm’s
near-term prospects, supported by consistency in its earnings/cash
flows, attractive fundamentals and a positive outlook. These
factors are reflected in Halliburton’s Zacks Rank #2 (Buy),
implying that it is expected to outperform the broader U.S. equity
market over the next one to three months.
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 enjoys very
strong relationships with both publicly-traded and national oil
companies worldwide.
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.
Additionally, the world's second-largest oilfield services firm
after Schlumberger Ltd. (SLB) remains in excellent
financial health with some $2.5 billion in cash and a
debt-to-capitalization ratio of around 23%. This helps Halliburton
to capitalize on investment opportunities and offers options to
make strategic acquisitions, thereby further improving growth
visibility.
Finally, Halliburton’s recent announcement of a 39% increase in its
quarterly dividend is another piece of positive news. We believe
that the dividend hike not only highlights Halliburton’s commitment
to create value for shareholders but also underlines the energy
equipment supplier’s healthy financial condition and confidence in
its business going forward.
Importantly, Halliburton has surpassed earnings estimates three
times in the last four quarters. The Zacks Consensus Estimates for
both 2013 and 2014 have also risen nicely over the last few
months.
Other Stocks to Consider
In addition to Halliburton, there are certain other energy
equipment suppliers like Exterran Holdings Inc.
(EXH) and Willbros Group Inc. (WG) that offer even
greater value and are worth buying now. Both these firms sport a
Zacks Rank #1 (Strong Buy).
EXTERRAN HLDGS (EXH): Free Stock Analysis Report
HALLIBURTON CO (HAL): Free Stock Analysis Report
SCHLUMBERGER LT (SLB): Free Stock Analysis Report
WILLBROS GROUP (WG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Schlumberger (NYSE:SLB)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Schlumberger (NYSE:SLB)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024